Daimler, Renault-Nissan extend manufacturing alliance

Alliance to now include supplying engines and gearboxes to each other

Daimler and Renault-Nissan said on Friday they would extend a manufacturing alliance to include engines and gearboxes.

In a joint press release, Daimler and Renault said the partnership would include an agreement for Renault to supply Daimler with a 1.5 litre four cylinder diesel engine for use in its Mercedes-Benz C-Class.

Mercedes in turn will supply its 2 litre four cylinder gasoline engine for use by Nissan's premium brand Infiniti.

Nissan has been granted a licence to make Daimler's 9-speed automatic transmission for use in Infiniti vehicles.

"This relationship is in its fifth year. Progress has gone well beyond our initial expectations," Renault-Nissan Chief Executive Carlos Ghosn said at a joint press conference.