The Renault-Nissan Alliance and Daimler AG have announced the beginning of a strategic partnership which will see the two groups share platforms and powertrains.

The next-generation smart fortwo and Renault Twingo due in 2013 will be based on the same (rear-drive) platform, which will be used for a wider range of small cars from both sides of the partnership.

Renault-Nissan will develop new small petrol and diesel engines for the fortwo/Twingo vehicles, while Daimler will supply larger petrol and diesel units to Nissan's Infiniti brand.

The two groups will also collaborate in the development of light commercial vehicles. Renault will supply diesel engines for Mercedes' Vito van and Mercedes will develop a new entry-level van based on Renault's existing vehicles.

Each group will take a 3.1% shareholding in the other.

The partnership seems to make good sense for both parties: Daimler strengthens its portfolio in the growing area of small cars and can make use of Renault-Nissan's expertise in electric cars, while Renault-Nissan cuts development costs and utilises its production capacity more effectively.