The tripartite alliance among Renault, Nissan and Daimler is focused on small cars and LCVs. The pact enables each of the partners to enjoy a stake of 1.55% in Daimler and Daimler will enjoy 3.1% in Renault and 3.1% in Nissan. They believe that the pact would accrue 2 billion Euro in the next 5 years by way of cost saving and additional sales in the challenging European market. the deal is at core about sharing components as Renault-Nissan will take care of powertrains for Daimler’s micro cars- Renault Twingo and Mercedes-Benz range of compact cars. Nissan’s Infiniti will get the petrol and diesel engine tech from Daimler. In addition the alliance will involve for LCVs. The deal is akin to Peugeot Citroen playing as an engine supplier to BMW but the current deal among these partners is a project-oriented. The deal makes each of the partners as the supplier to the other. Daimler has had a tough time in the past with alliances- in 2005 it dropped its Mitsubishi project, ended up badly with Chrysler. Hence the current deal is taken in a serious view on restricted cooperation.