Tokyo, Japan – Nissan and Renault are expected to announce a capital and business deal with Daimler AG, according to the Green Car Congress.

The report, cited in Kyodo News, said that the companies are interested in developing electric vehicles, as well as compact cars for emerging and developing countries. Nissan and Renault would obtain stakes of around three per cent in Daimler, with the German company taking similar stakes in each of the alliance partners.

The partnership would result in cooperative ties in such fields as environmental technology and compact car development, which would cut costs due to expansion of scale.

Daimler is also considering supplying large-displacement gasoline and diesel engines to Nissan, the report said.

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