Daimler and Renault working together

Daimler has joined forces with Renault for Joint Powering Work. The announcement was made at the on-going Paris Motor Show. Mercedes-Benz, one of Daimler’s owned companies, is the world’s third largest luxury automotive brand. Renault is struggling this year in the European car market given the tough task of conquering the Euro Zone crisis.

The two companies have joined together in order to combine their electric powering system projects. Together they are set to create a four cylinder petrol engine which will be used at the start of 2016. Mercedes will source automatic gearbox transmissions to Infiniti, the luxury brand of Renault’s partners, Nissan, as part of the deal. Nissan’s plant based in Tennessee will produce four cylinder petrol engines destined for Infiniti and Mercedes-Benz models too.

Daimler is heading for a major push on electric power systems upon Smart and Twingo cars in the very near future.
Renault and Daimler originally began cooperating back in 2010, developing commercial delivery vans together. This time round they are hoping to focus on the small car market together rather than larger vans. Renault current develops Daimler’s Citan delivery van which is based on their Kangoo model.

Dieter Zetsche, Chairman of Daimler, said that he is happy with current situation “What is happening goes far beyond our initial expectations. We are very happy on our side with this partnership. The Carlos-and- Dieter show will go on.”

Renault and Daimler will be conducted fuel cell technology research together in hope of developing future more efficient car energy. They will look different types of systems and electric battery technology for electric cars in the future.

Daimler’s Smart car will receive the same platform as Renault’s new electric Twingo car it is believed, with the Smart car containing four seats. This was at first an idea that was largely dismissed due to technological restrictions but it appears that the project now has the green light to go ahead.

With both Renault and Daimler working together, it is estimated that both companies would be able to saved $2.86 billion over five years, a significant amount of money. Each company will effectively hold a 3.1 per cent stake in one another’s business and that will not increased.

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