A partnership has been building up between RENAULT and Daimler which is Mercedes’s parent company, since 2010. In 2013, the 1.5 liter RENAULT turbo diesel engine was already powering the entry level A-Class Mercedes cars.
A recent report shows that the French company is now also supplying the entry-level C-Class Mercedes with its 130PS 1.6 liter four-cylinder turbo diesel engine. This engine which is built in a Normandy factory is also offered on the RENAULT Mégane, Fluence, Scénic and Nissan Qashqai as well as Daimler owned Smart cars.
Though these entry-level engines represent only 4% of the total engines produced by RENAULT, it is expected that the annual sales volume will increase sharply from 100 000 to 300 000 shortly, with Renault engines supplying 9 Daimler models.
RENAULT has been reluctant to communicate on this engineering success. The RENAULT approach seems to be the equivalent of: it is impolite to put yourself forward. This stealthy approach has also been used in Formula 1 racing.
However Chairman, Carlos Ghosn, did say recently that during the last four or five years the media did not talk about the domination of French technology when the RENAULT engine won all the championships in Formula 1. The same media, he says, talk about the domination of Mercedes this year, now that, for the first time the Germans are ahead.
The Renault-Mercedes partnership is profitable for both companies with RENAULT benefiting from extra plant workload to amortize engineering costs and Mercedes avoiding costly investments to keep up with tightening environmental regulations.
The Renault-Nissan(Japan)-AvtoVaz(Russia) group now stands as the world’s fourth biggest in car-making by sales behind Toyota, General Motors and the Volkswagen Group.
Sources : autoweek.com, carscoops.com, lesechos.fr
Video Source : http://www.youtube.com/watch?v=hzYEy1eFBqo
Online publishing, September 19th, 2014