PARIS (Reuters) -- Daimler and Renault-Nissan are extending their manufacturing alliance to include engines and transmissions.
The partnership will include an agreement for Renault to supply Daimler with a 1.6-liter four-cylinder diesel engine for use in its Mercedes-Benz C class, Daimler said in a release.
Mercedes in turn will supply its 2.0-liter four-cylinder gasoline engine for use by Nissan's premium brand, Infiniti.
Nissan also has been granted a license to make Daimler's nine-speed automatic transmission for use in Infiniti vehicles.
"This relationship is in its fifth year. Progress has gone well beyond our initial expectations," Renault-Nissan CEO Carlos Ghosn said at a joint press conference at the Paris auto show on Friday.