Renault and Daimler in talks

It has been confirmed that Renault is in talks with Daimler over a possible partnership between the two companies.

Not long before the talks began, it was widely reported that Daimler was looking for a partner to help it expand the Smart brand and build engines for its Mercedes B-Class and other smaller models.

Renault CEO Patrick Pelata has said the discussions have covered engines, platforms and transmissions. "Carmakers are holding discussions with each other," said Pelata. "There are a lot at the moment. Yes, we are discussing serious matters with Daimler"

Reports have suggested that Renault and Daimler are looking to collaborate on a new rear-engined micro car platform which would suit the likes of the new electric Renault Twizy and the next generation of Smart cars due in 2013.