Renault-Nissan and Daimler have confirmed details of their new alliance.
Both sides are hailing the he deal as a vital move to help secure their futures.
Daimler’s Chief Executive Officer, Dieter Zetsche said: “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.”
Sentiments shared by his counterpart at Renault-Nissan, Carlos Ghosn: “By sharing our resources and our costs, particularly in powertrain, we are creating a technological powerhouse that will benefit all partners.”
The German carmaker is to give the French-Japanese partners a 3.1 percent stake in its firm and vice-versa.
Both Renault and Nissan, which already form an alliance dating back to 1999, will take 1.55 stakes in Daimler.
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.
Common components for light trucks and utility vehicles will be shared too.
A new version of Daimler Smart is being drawn up and a new model of Renault’s Twingo.
Many motorists will also be eagerly anticipating a new mini-electric concept known as the Twizzy.
Tie-ups and technology exchanges have become a crucial survival measure since the financial crisis drove many carmakers out of business.