Automotive giants Renault and Nissan have expressed their new partnership with Daimler that will give a 3.1-percent mutual equity stake for the three companies. This partnership will also trigger an initiative to work on light commercial vehicles, small cars and small engines.

The three carmakers also announced that they will explore further areas of cooperation like the sharing of automotive parts between Daimler’s Mercedes-Benz and the Infiniti luxury marque of Nissan. They have also expressed the possibility of working together in Japan, China and the United States.

This exchange in shares will prompt Renault to give new stocks for the 3.1 percent share of Daimler in the French automotive company. Also, Daimler will get a 3.1 percent ownership of Nissan from its active shares while Renault and Nissan will acquire 1.55 percent of the treasury shares of Daimler.

In an official statement that was delivered before a press conference in Brussels, Belgium, the three car manufacturers stated that they are also open to the possibility of developing automobiles that are ran by electrical power. This deal was finalized under a strengthening compromise among car manufacturers to turn to pool production and carbon dioxide compliance to improve their investment potential despite the challenges that are being faced by the industry.

In this new partnership, Daimler, Renault and Nissan will also co-develop and share diesel and petrol engines for the Twingo and Smart. These models will then be modified to create a new line of premium compact cars for Daimler.

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