Daimler, Renault close to cross-shareholding deal: report

Daimler, Renault close to cross-shareholding deal: report

Frankfurt: German premium carmaker Daimler and French group Renault are close to finalising a strategic alliance that would include each owning 3% of the other, a press report said Thursday.

The Financial Times quoted people close to the deal as saying it is likely to be announced in April and that while the two automakers “don’t want to marry," they did want to underscore their strategic partnership with a cross shareholding.

Projects on which both companies could work together include the development of a small car platform and common components for light trucks and electric cars, the newspaper said.

Renault and its Japanese partner Nissan are developing an extensive line of electric vehicles, while Daimler could contribute its robust diesel engines for luxury cars and trucks, it noted.

The auto sector is struggling to overcome a slump in global demand last year and joining forces to develop electric vehicles that many hope will be the industry’s next big offering.

Volkswagen, the biggest European car maker, and Suzuki of Japan finalised a cross-shareholding operation last year.