Daimler And Renault To Tie The Knot. Symbolically

Bertel Schmitt
by Bertel Schmitt
daimler and renault to tie the knot symbolically

After long hand-holding and necking, Daimler and Renault finally seem to progress to third base. The Financial Times reports that the French and the Germans are in the final stages of wide-ranging strategic partnership talks that would involve the German and French car makers taking ‘symbolic’ minority stakes in each other.”

The “symbolic” cross shareholdings will most likely be a bit more than 3 percent, “just above the threshold whereby shareholdings had to be made public,” said a source to the FT.

A senior industry executive said that the two car makers “don’t want to marry.” They want to get in bed with each other nonetheless, so “it makes sense to underpin that with a symbolic stake.” Call it the high finance version of friendship rings.

The real tie-up is somewhere else: Daimler and Renault want to cooperate in a number of fields, from a small car platform to common components for light trucks and electric cars.

Renault’s Japanese partner Nissan wants to be part of the tie-up. “Nissan Motor Co. has entered negotiations with Daimler AG to procure large engines and cooperate in the development of environmentally friendly vehicles, said The Nikkei [sub] a few days ago.

Nissan may buy large diesel engines and V-8 gasoline engines from Daimler. In return, Daimler will get electric cars and batteries from Nissan.

Both companies aren’t necessarily hard up for money (they have rich sugar daddies in France and Saudi) but a capital tie-up make it easier to “go deeper” into areas such as research and development and purchasing, one person familiar with the talks said: It’s easier to exchange and keep secrets if you exchange stock certificates and board seats.

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  • Daanii2 Daanii2 on Mar 25, 2010

    Aren't these kind of tie-ups pretty common in carmaking? No real commitment on either side. Just some feeling out. A little sharing. But the crown jewels are definitely still kept locked away. Seems good for both sides.

  • Blowfish Blowfish on Mar 25, 2010

    they will hold hands as long as there're benefits to be traded, soon as the "Thrill is gone" just like BB King's song, they will disappear faster than a Bugatti Veyron need to reach 60 MPH. Back in 99 when Daimler walked down the isle with Chrysler they both got the same Koshering from everybody else.

  • Redapple2 Cadillac and racing. Boy those 2 go together dont they? What a joke. Up there with opening a coffee shop in NYC. EvilGM be clowning. Again.
  • Jbltg Rear bench seat does not match the front buckets. What's up?
  • Theflyersfan The two Louisville truck plants are still operating, but not sure for how much longer. I have a couple of friends who work at a manufacturing company in town that makes cooling systems for the trucks built here. And they are on pins and needles wondering if or when they get the call to not go back to work because there are no trucks being made. That's what drives me up the wall with these strikes. The auto workers still get a minimum amount of pay even while striking, but the massive support staff that builds components, staffs temp workers, runs the logistics, etc, ends up with nothing except the bare hope that the state's crippled unemployment system can help them keep afloat. In a city where shipping (UPS central hub and they almost went on strike on August 1) and heavy manufacturing (GE Appliance Park and the Ford plants) keeps tens of thousands of people employed, plus the support companies, any prolonged shutdown is a total disaster for the city as well. UAW members - you're not getting a 38% raise right away. That just doesn't happen. Start a little lower and end this. And then you can fight the good fight against the corner office staff who make millions for being in meetings all day.
  • Dusterdude The "fire them all" is looking a little less unreasonable the longer the union sticks to the totally ridiculous demands ( or maybe the members should fire theit leadership ! )
  • Thehyundaigarage Yes, Canadian market vehicles have had immobilizers mandated by transport Canada since around 2001.In the US market, some key start Toyotas and Nissans still don’t have immobilizers. The US doesn’t mandate immobilizers or daytime running lights, but they mandate TPMS, yet canada mandates both, but couldn’t care less about TPMS. You’d think we’d have universal standards in North America.