Renault, Nissan and Daimler have confirmed details of their new alliance.
The German carmaker, most known for its Mercedes Benz brand, is to give Renault and Nissan a 3.1 percent stake in its firm.
For Daimler’s CEO the move will help secure the future of all involved.
“Carlos Ghosn and I are here to see the long-term strategic operation between our two companies. By doing so we are creating considerable benefits for both parties from the very beginning,” said Dieter Zetsche.
The deal will see the companies remain separate, but allow them to share technology and development costs for a range of small and electric cars.
A new version of Daimler Smart is being drawn up alongside a new model of Renault’s Twingo but many motorists will be eagerly anticipating a new mini-electric concept known as the Twizzy.