Shock: Daimler set to abandon its partnership with the Renault-Nissan Alliance

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Daimler intends to abandon its partnership with the Renault-Nissan Alliance, after the completion of ongoing projects. According to information revealed by the German press, the decision is part of a comprehensive restructuring program prepared by Ola Källenius, the future CEO of the German group.

In early 2010, Daimler entered a comprehensive technical partnership with the Renault-Nissan Alliance, which aimed primarily at reducing costs by sharing platforms and engines. Most recently, the three builders have collaborated on the development of a new 1.33-liter four-cylinder gasoline engine announced in late 2017, which is now powering many models, like the Mercedes-Benz A-Class, Renault Clio, the Nissan Qashqai and even the Dacia Duster.

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Other major fruits of the joint-venture  were the Mercedes-Benz Citan and the latest Smart range, which were developed in collaboration with Renault and are also manufactured by the French company in its own factories.

Even if the marriage between the two car giants seemed happy, the German magazine Motorsport Magazin now claims that Daimler intends not to prolong the agreements signed with the Renault-Nissan Alliance, without any mention about when the current contracts expire.

It is not excluded that the radical move is based on the intention to work more closely with BMW. Daimler and BMW announced in February that they are joining car sharing, car rental and electric car charging infrastructure, and later confirmed they want to develop together technologies for autonomous driving on motorways. German media also speculated that Mercedes-Benz and BMW will unleash an electric model on a common platform, but the information was later denied by the Bavarians.

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Manager Magazine claims that Ola Källenius, the Swedish set to take over the reigns of the German group on May 22 from Dieter Zetsche, wants to cut costs by 6 billion euros at the Mercedes-Benz division and two billion euros at the truck division, in the next two years. To achieve these objectives, Daimler would fire about 10,000 employees, or about 3% of the nearly 300,000 employees it had at the end of last year. In February, Daimler announced that it would adopt cost-cutting measures after operating profit fell 22 percent in the fourth quarter of 2018 due to the effects of global trade tensions and higher costs for development of electric vehicles.