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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.
