Nissan-Renault to obtain a symbolic stake in Daimler

The Nissan-Renault joint venture is in its final stage of obtaining a symbolic stake in each other as both of the companies are looking beat their competitors by sharing technology amid intensifying competition, reported Nikkei business daily, on Friday.

The news paper further reported that Japan's third largest car maker Nissan, which has a tie-up with French car maker Renault, is all set to acquire a stake of 1 to 2 percent in Daimler. The report added that Negotiators are considering stock swaps or other arrangements that limit the need to raise fresh funds.

Many major car makers around the world are hunting for partners to expand their operations in other markets and at the same time cut the cost by sharing technology, design and R&D (research and development).

Commenting on the news of acquiring a symbolic stake in Daimler, Mr Carlos Ghosn, chief executive of Renault-Nissan, said that adding a third partner in the 11-year old Nissan-Renault alliance in equity relationship is meaningful to ensure a level of commitment and trust.

Nissan-Renault alliance has invested heavily at its Chennai based facility with their Indian partner Bajaj Auto to manufacture an ultra low cost car in India by year 2012. Besides this the Nissan motors also planning to launch its small car Nissan Micra model in India by year 2011. The Nissan Micra model will be launched in the premium hatchback segment where it will be competing with half a dozen popular cars in India including Maruti Wagon R, Maruti Swift, Ford Figo, Volkswagen Polo, an upcoming car from Honda, Toyota Etios (will be launched in December 2010) and Chevrolet Beat.