German carmaker Daimler is to give Renault and Nissan a 3.1% stake in its business as part of a global tie-up of the brands and in exchange, Daimler will take a 3.1% stakes in both Renault and Nissan, who have been in an alliance since 1999.
The deal will see the companies remain separate, but allow them to share technology and development costs. The carmakers will co-operate to make electric cars and light commercial vehicles.
Rising fuel prices and have led to
rising numbers of firms looking for more fuel
efficient cars
Rising fuel prices and pressure from the government on fleets to reduce CO2 emissions - from 2012 firms face the threat of fines - have led to rising numbers of businesses looking for smaller and more fuel efficient cars.
"This industry is moving more and more towards increasing scale, and sharing innovation and investment," said Carlos Ghosn, chairman and chief executive of the Renault-Nissan Alliance,
"The name of the game is to be present everywhere. You have to be present in all of the emerging markets, and in every segment in those markets."