Renault and Daimler have reached a new deal under which the former will develop electric motors for the Smart and Twingo brands, while the latter will supply batteries, a German paper reported. "By doing this we will immediately be able to boost sales," Daimler's head of research and development Thomas Weber told Germany's Stuttgarter Zeitung in an interview due to be published on Monday.
France's Renault, its Japanese partner Nissan and Daimler signed a cooperation deal for their electric cars last April, initially focusing on small cars, light commercial vehicles and engines. The new agreement is an extension of this deal.
The Stuttgart-based group is also looking for an alliance partner for its electric engines business, Weber said.
The move comes as carmakers and car parts suppliers battle for a foothold in the lucrative market for zero-emission vehicles and deadlines for lower emission levels loom.