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Confirming what everyone else has been saying, Daimler chief Dieter Zetsche says the German luxury car maker will partner with another car company to build small cars and will announce its choice of a partner by mid 2010.


One company we know is in talks with Daimler about a small car deal is France's Renault, which already is teamed with Nissan.


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Daimler CEO Dieter Zetsche (left) shakes hands with French President Nicolas Sarkozy at dedication earlier this year of French factory for production of Smart electric cars. Daimler and France's Renault are now talking about a small car partnership.




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We know about the talks because Renault's chief operating officer, Patrick Pelata, said so in a press briefing on Dec. 17. Zetsche confirmed them in an German press interview this week, saying that Daimler is also talking to other companies.


Daimler wants a partner that already has small-car experience to help expand its Smart mini-car lineup and develop engines for the Mercedes-Benz B Class and other Mercedes small cars.


Joint ventures are a way to spread out the tremendous up-front costs automakers bear in developing new vehicles and powertrains. 




While some critics say Daimler is diluting its luxury image by building compacts and subcompacts, such cars are easier on fuel than the large Mercedes-Benz models, making it easier for Daimler to meet the increase fuel economy and decreased CO2 emissions demands of the various countries - including the U.S. -  in which it markets its vehicles.

Tags: Daimler, Peugeot, Daimler Renault Partnership, Daimler Small Car, Mercedes Benz

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Daimler Says New Small Car Partnership Will Be Announced by Summer was originally published by Green Car Advisor. Read the full story by clicking here.