PARIS -- Daimler and Renault-Nissan will jointly develop a turbocharged, direct-injection gasoline engine and will share transmission technology as the two companies expand their collaboration.
Renault-Nissan CEO Carlos Ghosn and Daimler CEO Dieter Zetsche confirmed the new projects today at a news conference during the Paris auto show press days. Ghosn said the joint effort has expanded since its inception in July 2010 to become a broad "strategic collaboration."
The companies own small equity stakes in each other, but both Zetsche and Ghosn said they have no interest in a merger.
The direct-injection turbocharged engine will feature state-of-the-art technology in a compact package, aiming at tougher fuel economy and emissions targets in the European Union and United States.
The companies expect to jointly manufacture the engines. They will debut in Daimler and Renault-Nissan vehicles in 2016.