The door metaphorically adjoining the offices of Msr. Ghosn and Dr. Zetsche swings both ways. The two executives – heads of Daimler and the Renault-Nissan Alliance respectively – signed a deal that would see the two auto groups collaborating on future products. So far all the reports appear to be benefiting Nissan – including the latest on AMG engines in Infiniti Performance Line models – but the latest indicate a measure of reciprocation.

According to the wire coming in from across the pond, the next generation of Mercedes-Benz A- and B-Class hatchbacks will be powered by Renault-Nissan's new 128-hp 1.6-liter turbodiesel four. Beyond that, the two auto groups will reportedly begin developing a new range of small engines, similar to the engine program between BMW and PSA Peugeot-Citroën.

Their displacements will, according to reports, range from 1.2 liters to 1.8, cylinder counts from three to four and coming in both gasoline and diesel formats, to be used in a broad range of small cars bearing Mercedes, Smart, Nissan and Renault badges.

[Source: Autocar]