Daimler, Renault Forge Small Car Partnership
The next generation Smart line will be crafted with Renault-Nissan's help.
The winds of change continue to sweep the auto industry as car manufacturers face the new realities of an ultra-competitive and often distressed global car market.
Market Survival
Sales are on the rebound around the globe but after the bloodletting of 2009, car companies realize that in order to survive, they must cooperate. And, short of outright mergers and acquisitions, new arrangements include forging key alliances to build certain models.
Daimler and Renault with its partner, Nissan, have forged an agreement whereby the three companies will share technologies, platforms and a host of other features across their small car lines. Specifically, Daimler–who produces Mercedes and Smart cars–will be able to join with Nissan and Renault to build its smallest cars. That arrangement was initially hatched more than a year ago when Daimler and Renault-Nissan agreed on a small car deal that would yield the next generation Smart car model.
Component Sharing
Now, the latest agreement goes a step further as Mercedes will share some of the components powering its A and B segment vehicles with Renault and Nissan products. Importantly, Daimler will supply the electric technology which will power these small cars while Renault will supply three three-cylinder gas engines. No diesel engines are in the proposed mix.
The decision to allow Mercedes to supply the electric components comes as surprise given that the Nissan LEAF, a battery electric car, will debut later this year. Thanks to Nissan technology, the LEAF will be one of the first pure electric cars when it hits the market.
Special Deal
By crafting the deal, Daimler will not become the third part to a three-legged car manufacturer stool. Nissan-Renault had been looking for a third partner for several years, first talking with General Motors and then with Chrysler before cutting off those talks.
Daimler is wary of crafting any sort of arrangement with anyone but a premium car manufacturer but tying its small car lines in with Renault and Nissan will allow the German automaker to share a number of key components without sharing platforms in entirety.
Neither Mercedes A-Class or B-Class models are sold in the US, a market which perceives Mercedes as strictly a luxury car manufacturer. However, with tighter EPA guidelines coming down the pike, Mercedes may introduce its A and B segment models to the US or expand its Smart brand to fill that gap.
Will there be more deals forthcoming between Daimler and its new partners? Quite possibly, especially if Daimler and Nissan can forge some sort of agreement for their luxury brands, Mercedes and Infiniti.
Source: Automobile magazine
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