The Renault–Nissan Alliance today announced that Nissan Canada has entered into a memorandum of understanding (MOU) with the Government of Québec, the City of Montréal, Québec City, Hydro-Québec and the Agence de l'efficacité énergétique du Québec to advance zero-emission mobility in Québec. The parties will work together to plan the necessary charging infrastructure and to promote the use of zero-emission vehicles in Québec.

"This agreement brings us a step closer to a governmental action plan on electric vehicles, which will be launched within the next few months," said Minister of Natural Resources, Nathalie Normandeau. “We are planning a series of concrete actions that will pave the way for the arrival of electric vehicles in Québec. Since 97% of our electricity comes from clean, renewable resources, Québec presents a number of advantages for the introduction of electric vehicles.”

“The Renault-Nissan Alliance has committed to being a global leader in zero-emission mobility, which is one of the best solutions for reducing CO2 emissions,” said Mark Grimm, President Nissan Canada Inc. “We look forward to bringing the Nissan LEAF, the only mass-market zero-emission car at an affordable price, to Québec. Our partners have already demonstrated their commitment to combating greenhouse gas emissions and we anticipate a productive collaboration.”

Thierry Vandal, Hydro-Québec’s President and CEO, added that "today's announcement falls perfectly in line with our Strategic Plan 2009–2013 and other initiatives currently underway at Hydro-Québec. This memorandum of understanding will allow us to work closely with these important partners to carefully plan for the arrival of electric vehicles in Québec."

“Montréal is a true leader with respect to the reduction of greenhouse gas emissions, ” said Alan DeSousa, Vice-President of the Executive Committee and responsible for finance, sustainable development, environment and parks. “The memorandum of understanding signed with our partners meets the objectives of Montréal's Strategic Plan for Sustainable Development. It will raise our city's profile in North America with regard to electric vehicles and will help us reach our goal of reducing greenhouse gas emissions by 30% by the year 2020.”

Québec City's Mayor, Régis Labeaume stated: “This partnership is in line with Québec City's ongoing efforts to develop sustainable transportation. The implementation of the Écolobus service, a fleet of non-polluting, ultra-quiet electric minibuses that travel the streets of Vieux-Québec, is a great success that contributes to maintaining the quality of the capital’s environment.”

Nissan, along with its alliance partner Renault, is committed to making affordable, all-electric vehicles available to the mass-market globally. The Nissan LEAF, a five-passenger all-electric vehicle, will first be available in select Canadian markets, such as Québec, before the end of 2011.

The MOU agreement adds Québec to a growing network of zero-emission vehicle initiatives across the world.

India's Bajaj Auto, making an ultra low-cost minicar with Renault to challenge the Tata Nano, said Wednesday it wants the new compact to be cheaper, greener and deliver "pathbreaking" fuel economy.

The Nano, made by top Indian vehicle maker Tata Motors, sells for 123,000 to 172,000 rupees (2,700-3,800 dollars) and is billed as the world's cheapest car, pitching itself to the nation's millions of motorcyclists wanting to trade up.

Bajaj, India's second-largest two-wheeler maker which is tasked with building the new car by its Renault-Nissan alliance partners, said it is aiming to have the vehicle on the road by 2012 for 2,500 dollars (112,000 rupees).

But the sticker price "is only one part of the equation," Bajaj managing director Rajiv Bajaj told reporters in New Delhi.

"Our intention is to do a pathbreaking job with fuel economy," he said.

"We remain very clear whether the car is 100,000 rupees or 150,000 rupees is not what's important," Bajaj said. "What counts just as much is mileage, maintenance and carbon emissions."

The Indian company is focusing on developing a four-wheeler whose "cost of ownership is low enough to motivate two-wheeler buyers to upgrade," Bajaj said.

"Our aim is to deliver mileage of 30 kilometres to a litre of fuel (71 miles per US gallon)," he said, aiming to better the mileage of the hatchback Nano of 23.6 kilometres a litre.

On average, small cars in India give mileage of 15 to 18 kilometres per litre.

"Our experience with motorcyclists is unless there's a 50 percent increase (in mileage), it's not considered good by customers," Bajaj said. said.

Renault teamed up with Bajaj to make the car as automakers globally try to tap into India's fast-growing car market. Small car sales represent more than two-thirds of India's market, driven by rising middle-class incomes.

The design, engineering, sourcing and manufacturing of the model is being done by Bajaj, also India's top producer of three-wheeled motorised rickshaws.

Bajaj added along with the car, the company would also aims to launch a light truck to meet rising demand for small commercial vehicles to navigate India's congested city streets.

The new car will have 70 to 80 percent of its parts in common with those used in Bajaj?s scooters, motorcycles and three-wheelers, cutting production costs.

Marketing and sales will be done by French carmaker Renault and Japan's Nissan Motor whose president, Carlos Ghosn, also recently pegged the new car's price at 2,500 dollars.

Bajaj added he wanted the car's carbon-dioxide emissions to set a new benchmark at 80 to 90 grams of CO2 per kilometre driven -- far below average Indian emissions of 140-150 grams per kilometre.

The Tata Nano has a CO2 emission level of 101 grams per kilometre.

"Indian motorcycles -- be they made by Hero Honda, TVS or Bajaj -- they're the greenest in the world. The excellent technology we have in two-wheelers should be brought to four-wheelers," Bajaj said.

Bajaj Auto, which unveiled a snubnosed prototype of the car in 2008, has a 50 percent stake in the venture while Renault and Nissan have 25 percent each.

The Renault-Nissan Alliance and Daimler AG today announced a broad strategic cooperation that will enable both groups to already realize benefits quickly from a range of concrete projects as well as sharing of best practices. The two groups also announced an equity exchange that will give the Renault-Nissan Alliance a 3.1% stake in Daimler and Daimler a 3.1% in Renault and a 3.1% stake in Nissan.

According to Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and head of Mercedes-Benz Cars, “Daimler and the Renault-Nissan Alliance are combining common interests to form a promising foundation for a successful, strategically sound cooperation that is based on a number of very concrete and attractive project cooperations. Our skills complement each other very well. Right away, we are strengthening our competitiveness in the small and compact car segment and are reducing our CO2 footprint – both on a long-term basis. We know that we can make brand-typical products based on shared architectures. The individual brand identities will remain unaffected.”

Carlos Ghosn, Chairman and CEO of the Renault-Nissan Alliance, said: “The Renault-Nissan Alliance knows how to work successfully in collaborative partnerships, and this experience is extremely valuable in today’s and even more tomorrow’s global auto industry. This agreement will extend our strategic collaboration and create lasting value for the Renault-Nissan Alliance and Daimler as we work on broadening and strengthening our product offering, efficiently utilizing all available resources and developing the innovative technologies required in the coming decade.”

Highlights of the Cooperation

Following intensive and productive talks, specific projects have been agreed upon and will be implemented with immediate effect. Specifically:

New common architecture for small vehicles

The successor to the current smart fortwo, a new smart four-seater and the next-generation Renault Twingo will be engineered on the basis of a jointly developed architecture. All vehicles will clearly differ from each other in terms of product design. One main characteristic of the new architecture will be the unique rear wheel drive concept used by current smart vehicles.

The launches of the jointly developed models are planned for 2013 onwards. The smart plant in Hambach, France will be the production location for the two-seater versions, while the Renault plant in Novo Mesto, Slovenia will be the production location for the four-seater versions. Right from its market launch, the jointly developed future models will also be available with an electric drive.

Powertrains

The focus of the cooperation in the powertrain area is on the sharing of highly fuel-efficient, diesel and gasoline engines between the Renault-Nissan Alliance and Daimler.

The Renault-Nissan Alliance will provide 3 and 4 cylinder gasoline and diesel engines out of its portfolio to Daimler, which will then be adapted and modified to reflect Mercedes’ characteristics. The result is a win-win situation for both sides: Daimler will be able to utilize Renault-Nissan Alliance engines and capture additional sales potential for Mercedes-Benz’ future lineup of premium compact cars, while the Renault-Nissan Alliance will improve its capacity utilization.
Daimler will provide gasoline and diesel engines out of its current portfolio to Infiniti. This includes 4 and 6 cylinder gasoline and diesel engines. The result is a win-win situation for both sides: Infiniti will be able to utilize Daimler engines, while Daimler will improve its capacity utilization.

Daimler, Renault and Nissan will also cooperate on future gasoline and diesel engines. Final production decisions for newly, co-developed engines will be taken at a later time, seeking a production network that is well balanced, thus benefiting all sides.

The area of engine cooperation will be driven by a technical concept that ensures the preservation and clear distinctiveness of the individual respective brand and product identities, while at the same time providing a highly competitive cost structure. First, a high level of standardization of the non-brand-relevant components will provide substantial savings for both partners. Second, the use of separate, brand-specific technology packages will ensure that the requirements of the respective brands are met.

A key objective is to increase competitiveness of all partners through a substantial increase in volumes, leading to economies of scale and cost sharing in development.

Collaboration on light commercial vehicles

The companies have also agreed on a close cooperation in the light commercial vehicle segment. Mercedes-Benz Vans will expand its portfolio to offer an all-new entry-level, intended for commercial usage, from 2012 onwards. The technical basis of this van will come from Renault and will be produced at the Renault plant in Maubeuge, France. Both partners will benefit from higher unit sales, better capacity utilization, shared investment burden, resulting in a better overall cost basis.
In addition to cooperating on small commercial vehicles, selected powertrain components will also be shared to enlarge mid-size van product offering and sales volumes. This includes a small diesel engine and transmissions which Daimler will procure from Renault-Nissan for its mid-size van, the Mercedes-Benz Vito. This additional entry-level motorization will generate additional unit sales for Mercedes-Benz and optimized capacity utilization at Renault.

Equity Exchanges

This strategic cooperation is underscored through a one-time cross-shareholding structure which enables the three companies to exchange, benchmark and create synergies on the basis of a long-term mutually beneficial relationship. The overall construction of the deal is based on the principle of a 3.1/3.1/3.1 percentage cross-holding between Renault, Nissan and Daimler; it will be transacted through an exchange of shares:

• Daimler will get 3.1% of Renault’s newly issued shares;
• Daimler will get from Renault 3.1% of Nissan existing shares;
• Renault will get 3.1% of Daimler shares
• Renault has independently agreed to exchange 1.55% of Daimler with Nissan for 2% of Nissan shares;
• Renault and Nissan will each hold 1.55 % of Daimler treasury shares.

The strategic cooperation will be managed by Renault-Nissan B.V. for the Alliance and Daimler through a new cooperation committee giving representation to all parties. The cooperation committee will be co-chaired by Carlos Ghosn and Dieter Zetsche and steered by senior executives of the three companies.

French carmaker Renault was expected to approve on Tuesday a new partnership with Germany's Daimler to exchange capital and to share know-how in building smaller cars.

France's number two carmaker convened a meeting of its board of directors in Paris to "decide on a new partnership with Daimler," French Industry Minister Christian Estrosi told a news conference.

Reports said Renault and Daimler, the manufacturer of the luxury Mercedes-Benz, have reached a deal to take three percent stakes in each other and work together to develop small cars and engines.

Japanese automaker Nissan, which is 44.3-percent owned by Renault, will also reportedly take part in the new tie-up and a formal announcement was expected on Wednesday.

A Renault spokesman declined to confirm the plan.

The global auto sector is struggling to overcome a slump caused by the economic downturn and is joining forces to share technology and reduce costs.

German industry experts think that, by cooperating with Renault, Daimler could make savings of 600 million euros (800 million dollars) in its development sector.

Estrosi said a senior official from the economy ministry, Luc Rousseau, was attending the meeting. The French state has a 15-percent stake in Renault.

"I can confirm that we approve of this partnership and that our representative will defend the state's industrial strategy," said Estrosi.

Renault shares were up 2.55 percent at 36.40 euros in lunchtime trading Tuesday in Paris on news of the partnership with Daimler. Daimler was up 0.27 percent at 35.50 euros in Frankfurt.

The deal would be a "win-win situation" for the two firms, said Philippe Barrier from Societe Generale Cross Asset Research.

It would allow Daimler to buy technology at good prices while Renault and Nissan could share the cost of research and development for bigger models with the German partner, said Barrier in a research note.

The agreement provides for exchanges of engines and technology, sharing car parts and production platforms for future Smart models, and developing electric cars, said Guillaume Angue, analyst with CM-CIC Securities.

Despite poor sales for its Smart brand of minicars, Daimler envisions a turnaround by sharing parts with automakers that have strength in small vehicles, Japan's Nikkei business daily reported.

Renault and Nissan are developing an extensive line of zero-emission electric vehicles, including Nissan's Leaf, while Daimler could contribute its robust diesel engines for luxury cars and trucks.

Renault, maker of the popular Clio mini-car, entered into an alliance with Nissan 11 years ago to share car parts and open up access to production sites worldwide.

Nissan for instance builds Renault Sandero hatchbacks at its plant in South Africa while Renault builds Nissan models in Brazil. The two carmakers have built a joint plant in India.

Renault, Nissan and Daimler had combined sales of 7.22 million vehicles in 2009, trailing the 8.6 million units for the alliance between Volkswagen and Japan's Suzuki and the 7.81 million vehicles sold by Toyota.

Volkswagen, the biggest European car maker, and Suzuki finalised a cross-shareholding operation last year.

Automakers Renault and Nissan signed a deal with Spanish energy and infrastructure group Acciona on Tuesday to market electric cars in the country, the three companies announced.

Under the agreement signed in Madrid, Acciona will set up a network of recharging points and associated services for the vehicles.

Renault, France's number two automaker, is to begin selling four types of electric vehicles from 2011.

Nissan, Japan's third-largest carmaker and which is 44 percent owned by Renault, plans to introduce its first electric model in Europe in late 2010 or early 2011.

The three companies did not provide financial details of the agreement, which the head of Renault Spain, Jean-Pierre Laurent, said were "confidential."

The announcement came the same day as Spain's Socialist government said it plans to invest 590 million euros (794 million dollars) over two years in the development of an electric vehicle in the country.

Industry Minister Miguel Sebastian presented a report on the issue at a cabinet meeting, Deputy Prime Minister Maria Teresa Fernandez de la Vega.

"The plan envisages a wide range of measures to help the demand, to support investment and the development of the industrial sector and set up the necessary infrastructure to recharge the vehicles," de la Vega said.

The Spanish government hopes to see 250,000 electric or hybrid vehicles in the country by 2014.

Japanese carmaker Nissan said on Tuesday it will launch its Micra small car in the Indian market in July from a plant in the south co-owned with its French partner Renault.

"We will produce 80,000 units of Micra in the first 12 months beginning in May," Renault Nissan Automotive managing director Akira Sakurai said, according to Dow Jones Newswires.

The Micra was unveiled earlier this year at the Geneva auto show.

The Franco-Japanese carmaking alliance on Tuesday confirmed plans for another small car in the future, with its local partner, motorcycle and scooter manufacturer Bajaj Auto.

"We have room for another product, a small car, with Bajaj. This would be not just for Indian markets but for emerging markets too," Carlos Ghosn, chief executive of Renault-Nissan, said.

"The Micra will be competitive in terms of price and features with other Indian cars," Ghosn told media at a press conference in Chennai, where the car will be manufactured.

"To compete in India one must manufacture and source components locally, and meet Indian consumer needs," Ghosn added.

Nissan sold between 200 and 300 cars in India last year, all imported.

India and its 1.2 billion-strong population is a huge draw because of the low number of car owners.

Several automakers including Ford, Toyota and Honda are in the race to launch small cars in India in the next two years, to rival the Tata group's Nano, dubbed the "world's cheapest car" at 100,000 rupees (2,200 dollars).

Just eight per 1,000 Indians own a car, compared with 550 per 1,000 in Germany and 495 in France.

The Indian auto market is forecast to triple over the next decade to six million cars a year from the current two million.

French auto giant Renault Monday inaugurated its upgraded Avtoframos plant in Moscow where annual capacity has been doubled to 160,000 vehicles in a key market the company believes has bottomed out.

Renault chief executive Carlos Ghosn and Moscow city mayor Yury Luzhkov officially opened the facilities at the plant which the French company acquired when it bought Avtoframos.

Ghosn said Renault has responded to the need for "robust and affordable cars in Russia.

"We think that the market in Russia has bottomed out at the 1.4 million cars reached in 2009.... Now we should see a recovery," he added.

The upgrade cost 150 million euros (204 million dollars), on top of the initial plant investment of 230 million euros, Renault said.

The plant will add the Sandero model to the Logan it was already making.

"Moscovites really like the Sandero, it is a very modern and comfortable car," Luzhkov said.

Renault said in a statement that Russia remains a "strategic market" for the company given its enormous potential and despite the near 50 percent plunge in output last year as the global financial crisis slashed demand.

"There are 230 vehicles for every 1,000 inhabitants in Russia while in Western Europe it is 600 vehicles per 1,000 inhabitants," it noted.

Renault is also present in Russia via its 25 percent stake in Avtovaz, the country's largest automaker whose future was very much in doubt last year as the market tumbled.

Ghosn later met Russian Prime Minister Vladimir Putin who said he was happy with Renault's presence and its support for Avtovaz.

"We are grateful to you for your help in developing the company and the proposals you have drawn up for Avtovaz," Putin said.

Avtovaz, known as the maker of the Lada, is weighed down by massive debt of 62 billion rubles (1.52 billion euros, 2.07 billion dollars).

In November, Renault pledged technical and other assistance worth 240 million euros for Avtovaz.

"Avtovaz will be able to turn the situation around" and become a major player in the Russian market, Ghosn said.

The Renault-Nissan Alliance today announced that Nissan is entering into an agreement with the City of Houston to advance zero-emission mobility in the city by promoting the development of an electric-vehicle charging network and policies to support widespread adoptions of electric cars.

The announcement, made at the Houston stop of the Nissan LEAF Zero Emissions Tour, helps pave the way for the 2010 introduction of Nissan LEAF, the industry?s first all-electric, zero-emission car designed for the mass market. Nissan already has a similar working agreement with Reliant Energy, of Houston, one of the largest competitive electricity providers in Texas. Today?s announcement paves the way for public-private collaboration to foster electric-vehicle growth and development.

?For more than 100 years, Houston has pioneered advances in the energy field. With the same spirit of innovation, Nissan and the Renault-Nissan Alliance are committed to lead the way in the field of zero-emission automotive technologies,? said Carlos Tavares, Chairman, Nissan Americas. ?We are the only global automaker bringing an electric-vehicle lineup to drivers on a mass-market scale and at an affordable price.?

As part of the agreement, Nissan and the City of Houston, along with Reliant Energy, will develop plans to promote a charging infrastructure for electric cars that encourages home and workplace charging, as well as a public-charging infrastructure. The partners will work to coordinate the establishment of policies and help streamline charging infrastructure deployment. Nissan also has agreed to make available a supply of electric vehicles to the City of Houston and in and around the metropolitan area.

Houston is one of 14 cities that have joined the Clinton Climate Initiative C40 in a commitment to make their cities more electric vehicle-friendly. To that end, the city intends to add 25 electric vehicles this year, bringing to 40 the total number of plug-in cars in the city?s fleet.

?The discovery of oil at Spindletop in 1901 catapulted Houston to its current title of energy capital of the world,? said Mayor Parker. ?With ongoing research and development of wind, solar and electric fuel sources, we are on the cusp of becoming the alternative energy capital of the world. It is fitting that the city be a leader in increasing public awareness of environmentally friendly transportation alternatives like the LEAF.?

Reliant Energy is working to make the broad adoption of electric vehicles simple by developing an ecosystem of charging infrastructure and services that makes fueling electric vehicles more convenient and affordable than the gasoline alternative.

?I want to congratulate the city of Houston and Nissan on today?s agreement,? said Jason Few, president of Reliant Energy. ?This important step builds on the agreement we reached with Nissan late last year and is critical to the success of electric vehicles in Houston. We are working to create the infrastructure, services and a whole new way to buy power by the mile. We are working with our parent company, NRG Energy, towards the widespread electrification of transportation. We want to make Texas the electric-vehicle capital of the United States, starting in Houston.?

Nissan, along with alliance partner Renault, is the only automaker committed to making all-electric vehicles available to the mass market on a global scale. Nissan LEAF, a five-passenger all-electric car, will be available for private and fleet customers. It is being launched in the United States, Japan and Europe in late 2010.

Nissan has spearheaded a holistic approach to zero-emission mobility by working with states, municipalities, utility companies and other partners, to prepare markets and infrastructure. Nissan has formed more than a dozen partnerships in the United States, in areas including State of Tennessee, the State of Oregon, Sonoma County, San Diego and San Francisco in California, Phoenix and Tucson, Ariz., Washington D.C., Seattle, with the City of Orlando and the Orlando Utilities Commission, with Progress Energy in Raleigh, N.C., and with Houston-based Reliant Energy. Nissan also is working with AeroVironment for the supply and installation of home charging stations, creating a one-stop shop for the Nissan LEAF and its charging equipment.

Through the 24-city Nissan LEAF Zero-Emission Tour, which stopped in Houston today, Nissan has been showcasing the electric vehicle and battery technology as well as the company?s zero-emission mobility objectives.

French carmaker Renault is planning to shut down production of its Clio model in Spain and Slovenia but the car will still be made in France, a company executive said Wednesday.

"We plan to stop production of the Clio in Spain and Slovenia," Patrick Pelata, Renault's chief operating officer, told reporters after a meeting with Industry Minister Christian Estrosi.

Renault has come under heavy pressure from the French government to keep jobs at home following press reports about a planned shift of Clio production from France to Turkey.

Pelata said no decision has been made on beefing up Renault's assembly lines in Turkey.

"No decision has been taken because it is not yet time to make decisions," he said. "In any case, the Clio will be produced in Flins (near Paris), regardless of what happens, and that is very clear."

Government measures taken last year to support the auto sector in the economic downturn included generous loans to car makers on condition that they keep production and jobs in France.

"We're not giving all that money to support the auto sector so that all our factories can leave to go abroad," President Nicolas Sarkozy told members of parliament at an Elysee meeting on Wednesday.

"I strongly contest the idea that these big companies, just because they are global, no longer have a nationality."

Government spokesman Luc Chatel said Sarkozy would meet Renault chief executive Carlos Ghosn "very soon" on the Turkey issue.

France's number two car maker, Renault also makes the Clio at its plant in Flins, in the western Paris suburbs, and Bursa in Turkey.

Some 8,000 Clios rolled off the assembly lines of the Valladolid plant in Spain from January to June last year, destined mostly for the Spanish and Portuguese markets.

About 17,000 Clio II models were also manufactured in the Novo Mesto factory of Slovenia in the first six months of last year, according to Renault.

Over the past decades, France, which prides itself as an industrial powerhouse, has seen many of its plants move to Asia and elsewhere where production costs, in particular labour and taxes, are much lower.

French automaker Renault said on Tuesday that losses at Japanese unit Nissan Motor will cost it 1.15 billion euros (1.57 billion dollars) in the first quarter of this year.

Nissan Motor, Japan's number-three automaker, announced earlier Tuesday its first annual loss in almost a decade and said it expected to remain in the red this year because of slumping sales.

Nissan, which is cutting 20,000 jobs to cope with the global economic crisis, posted a net loss of 233.7 billion yen (2.4 billion dollars) in the year to March 2009, against a year-earlier profit of 482.3 billion yen.

Renault, which holds a 44 percent stake in the Japanese company, said Nissan's losses in the three months to March would have an estimated negative impact of 1.15 billion euros on its own first quarter performance.

In 2008, Renault had a net profit of 571 million euros, with Nissan making a positive contribution to earnings of 345 million euros.

Last month, Renault reported that its first quarter sales plunged 30.8 percent to 7.08 billion euros as the worst global slump in decades devastated the auto market.

It said then that it expected this year to prove "volatile."