Daimler-Renault-Nissan tie-up; Full details

Manufacturers are looking at bigger alliances with others to reduce the cost of development of platforms and drivetrains. The VW-Suzuki landmark deal was clinched and we now have this – A three way tie-up between Daimler, Renault and Nissan. This actually means that four companies would benefit from drivetrain and platform – Renault, Nissan, Mercedes-Benz and Smart. Moreover, they will be working together on developing new synergies. The aim is to save what a Daimler insider described to AutocarUK as “billions of euros in annual savings for both sides”.

As we had already pointed out, Daimler’s talk with BMW broke down last year due to differences in engineering philosophy and the two firms losing out on competitiveness in the market. BMW will now seek to work closer with the Peugeot-Citroen alliance. “We have talked to just about everyone in recent years but over time it became apparent that Renault provided the best fit both in terms of operations and business culture,” said a Daimler source familiar with the talks.

Core of the three-way alliance is Project Edison. It is a new small car initiative based on a platform that will underpin the next-gen Smart ForTwo and the successor to the ForFour. This platform uses a rear-engine rear wheel drive layout, much like the Tata Nano and will feature Tridlion safety cell which is an USP of all Smart cars. Renault will use the platform for its Twizy city EV and the next Twingo. The Smarts and the Renaults will be built at Renault’s Slovenian plant. There is no news yet if Nissan will pen a derivative on this platform although it is highly likely.

The second component of the deal pertains to drivetrain sharing. Project Edison will include an all electric powertrain based on the Smart ED. A new range of four cylinder engines with displacements ranging from 1.2L-1.8L  will be engineered by Daimler and built by Renault. Available in both petrol and diesel forms, the engines will do duty in the next-gen Clios, Smarts, Meganes, A-class and B-class Mercedes and other unnamed Nissan vehicles.

Away from the deal, Carlos Ghosn is looking at using Mercedes’ new Front and Four Wheel drive MFA (Modular Front antrieb) platform to come up with an all new entry-level Infiniti. This platform will underpin the next-gen A and B-classes. An extension of the agreement is under consideration that would see Daimler supply Renault with V6 and V8 diesel engines as well as next-generation automatics. We were however, disappointed to hear very less on Nissan’s plans.