Nissan, Renault, Daimler to develop compact engine

Kyodo News reported that Nissan Motor Co., Renault SA, and Daimler AG have agreed to jointly develop a compact four-cylinder, turbo-charged, highly fuel-efficient gasoline engine. The three automakers announced the plan during a news conference at the recently held Paris International Motor Show, attended by Nissan President Carlos Ghosn who also heads Renault, and Daimler Chief Executive Officer Dieter Zetsche. The compact 1.3-liter engine will be installed in vehicles made by all three automakers.
Daimler said it also agreed to license its automatic transmission system to Nissan, which is expected to fit its Infiniti luxury and Nissan models with the transmission system, starting in 2016. The transmission will be manufactured at a Mexican factory of Nissan subsidiary Jatco Ltd. Zetsche told reporters that the scope of cooperation between Daimler and Nissan-Renault has already reached a level far exceeding what they envisioned when they started. Daimler and the Nissan-Renault alliance hold small equity stakes in each other. However, Ghosn denied suggestions that the automakers would be moving to expand their capital tie-up, saying that entering into an arrangement that would bind them more stringently is unnecessary. (September 28, 2012)