The giant motoring alliance of Renault and Nissan, is set to get even bigger under a new three-way partnership agreement signed with Daimler. The deal includes immediate plans for collaboration on new models and equity exchanges between the companies. Renault already owns 44.3% of Nissan and Nissan holds 15% of Renault under an 11-year-old alliance between the two carmakers.

Under the deal Daimler’s next-generation Smart ForTwo, will share a platform with the Renault Twingo and there will be widespread sharing of engine development, including the sharing of Mercedes engines with the Nissan Infiniti brand. Meanwhile Renault-Nissan will supply engines and transmissions for the Mercedes-Benz Vito light commercial. However, the outward brand identities of each marque will not be affected.

Carlos Ghosn chairman and CEO of the Renault-Nissan Alliance said, "This agreement will extend our strategic collaboration and create lasting value for the Renault-Nissan Alliance and Daimler, as we work on broadening and strengthening our product offering, efficiently utilizing all available resources and developing the innovative technologies required in the coming decade."