Nissan, Daimler Eye Cross-Shareholdings to Create 3rd Largest Auto

Tokyo, March 26 (Jiji Press)--Nissan Motor Co. <7201> is in a final
phase of talks to ink a cross-shareholding deal with major German automaker
Daimler AG, informed sources said Friday.
Nissan and Daimler are expected to agree to acquire each other a
stake of less than 5 pct, the sources said.
Late last year, Renault SA of France, Nissan's alliance partner,
launched negotiations with Daimler over possible cross-shareholdings and
technology cooperation and Nissan joined the talks later, they said, adding
the three are hoping to reach a basic agreement in early April.
If the three automakers agree to form an alliance, it will create
the world's third largest automotive group in terms of unit sales, after the
Volkswagen AG-Suzuki Motor Corp. <7269> group and the Toyota Motor Corp.
<7203> group.
In 2009, combined global sales at Nissan, Renault and Daimler came
to 7.68 million units while the Volkswagen-Suzuki camp sold 8.59 million and
the Toyota group 7.81 million.
As for business cooperation, the Nissan-Renault team is considering
providing Daimler with technologies to make subcompact cars and electric
vehicles and Daimler plans to supply the group with large engine
technologies.
The three companies are also studying possibilities of chassis and
component sharing, the sources said.
The automobile industry is stepping up realignment moves worldwide
due to a rapid demand shift from developed countries to emerging economies
since the global financial crisis in 2008.
END