Renault-Nissan-Daimler three way tie-up on the cards?

The grapevine has it that Renault and Daimler AG are very close to clinching a Franco-German alliance. The two would sport cross-share holding much like Renault which owns 44% of Nissan and Nissan owning 15% of Renault. The two companies have revealed that they are in talks over some kind of collaboration but declined to comment on the cross-share holding. At the Geneva Motor Show Renault-Nissan CEO Carlos Ghosn told that the alliance would look for a third partner if needed. While he did not indicate any specific firm, he added that the alliance was “talking to many people in the industry.” The Renault-Nissan alliance has been going strong for 11 years now but Daimler has bad dreams from its tie-up with Chrysler.

The models under consideration are the compact front drive platforms and engines. The new alliance would share the development costs for the common parts with Mercedes Benz using them for their A-class, B-class and Smart cars while Renault will use them for their next-gen small cars. Mercedes Benz held talks with BMW but knowing the nature of the two companies, it was only natural that the talks broke down. Both the companies found it necessary to have competitive differentiation in their vehicles. Moreover, BMW is making its Mini models with French partner PSA –Peugeot Citroen.

This has finally led to BMW taking a decision that the future 1-series and Minis would share their front wheel drive platforms. This has come as a shocking announcement to BMW enthusiasts who were served up to only rear wheel drive cars by the firm. However, the next generation 1-Series would remain rear wheel drive with the switching happening sometime in 2014-2015. So the upcoming 1-Series will be the last generation to sport RWD. So hurry to get your compact drifting machine!