What happens to this partnership?
Daimler, the Renault and Nissan Alliance created a three-way partnership a decade ago. They released many joint products. One of the best examples of this cooperation is the Infiniti Q30/QX30 duo. Both are built on Daimler’s compact car platform. The situation has changed over the past few months, and it seems like the partnership is slowly crumbling. According to Automotive News, Daimler will offer institutional investors 9.2 million shares. At current exchange rates, the stake is estimated to be worth $364 million. This move comes after Nissan sold its entire stake in German automaker in May for $1.2 billion. Renault also sold its share in Daimler in March.
Daimler and Renault-Nissan partners released several joint models. The most recent is the Mercedes-Benz Citan, which is a slightly modified and rebadged version of the Renault Kangoo. This LCV’s first generation was ridiculed for its low quality, which was far below the standard of other models in the brand’s range. The X-Class was a rebadged Nissan Navara. However, sales of this more expensive truck were low, so Daimler had to discontinue it in May 2020. The partnership also produced the Infiniti Q50 which was sold in Europe with a Mercedes-sourced 2.2-liter engine and mated to an automatic seven-speed gearbox. Mercedes also provided its nine-speed automatic to different Nissan and Infiniti cars starting in 2018. Analysts in the industry believe that the 2018 arrest of Carlos Ghosn (the former CEO of the alliance) put the partnership in serious trouble. With both Renault and Nissan looking for ways to optimize their cash flow and to restore profitability, it seems that the days of the Daimler-Renault-Nissan partnership could be numbered.