French automaker Renault and Japan’s Nissan have formed alliance with Germany’s Daimler AG. The new partnership includes sharing of technology to develop eco-friendly vehicles as well as a mutual shareholding. Renault-Nissan Chairman Carlos Ghosn stated that the companies will hold a press conference on Wednesday. According to sources, each partner will own a stake of about 3 percent in the other, primarily with the aim of reducing the cost of developing low-emission subcompact cars and electric vehicles.
Currently Renault and Nissan have an alliance where Renault holds 44.3 percent stake in Nissan and Nissan holds 15 percent stake in Renault. All three companies are planning to develop better car for future including zero emission cars, fuel efficient sub-compact cars, electric cars by sharing or developing platforms. This would enable them to cut down on huge capital investments and bring down the cost of development and production.
With the equity-swap alliance, the three will have a combined output of 7.64 million cars to become the world's third-largest auto producer, after Volkswagen (8.6 million units) and Toyota (7.81 million units).
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