Daimler, Renault & Nissan Join to Make Small Car in India

India could very well be the first country where three of the world’s biggest manufactures, Mercedes-Benz (and Smart), Renault and Nissan, join forces to launch a small car together. According to a recent AutoCar India report, Daimler’s truck plant in Chennai is located close to Renault-Nissan’s car and Light Commercial Vehicle (LCV) plant. He has stated that the two companies share a good relationship and that they are “working in projects together.”

Project Edison, the name of the collaboration, is currently developing drivetrains for rear wheel drive vehicles as seen in smart cars. The engine options being considered are a 1.2-liter four cylinder petrol and some small-displacement diesel engines.

“We have worked very closely with Renault over the past year and if we are able to develop something suitable for the market, then India could get it,” said Dieter Zetsche, chairman of the board of Daimler and head of Mercedes Benz.

The companies signed a tripartite agreement last year, bringing with it a cooperation on diesel and petrol engines, LCVs, purchasing and exchange of operational benchmarks and best practices. The pact enables each of the partners to enjoy a stake of 1.55% in Daimler while Daimler will own 3.1% in Renault and 3.1% in Nissan. As a result of this understanding, the next generation Mercedes B-Klasse will receive a number of small-capacity Renault-sourced engines.

“We know small cars is big in India and we are aware of the growth potential. There is a lot of work going on between Renault and Smart. The new A-Class (Mercedes’ smallest offering globally) also has a high chance,” Zetsche added.