At a press conference earlier today a new partnership between Mercedes parent company Daimler and Renault/Nissan was announced that will see all three automakers working together to develop new products, while reducing overall costs. The partnership will see the German, French and Japanese automakers work together on future small car projects, engines and commercial vehicles.

German automaker Daimler AG and French car manufacturer Renault have reportedly agreed on a new business strategy that will see both parties create a global small-car alliance, sharing development costs and technology. Details of the deal are set to be announced tomorrow in Brussels with Daimler CEO Dieter Zetsche and Renault-Nissan Boss Carlos Ghosn taking part.

Dr. Dieter Zetsche, CEO of Mercedes-Benz parent company Daimler has said that the company will announce a small car partner mid way through 2010. Daimler has been in talks with French automaker Renault, with rumors that the two may partner on a new line of small cars and electric city cars. This partnership could also help produce future Smart models (including a 4-door) as well as future versions of the B-Class and A-Class (shown above).

Renault may be planning a return to North America, a market that it has been absent from since 1987. The news comes from a report in the Wall Street Journal, where Renault’s entry-level vehicle boss, Gerard Detourbet, admitted to the possible re-introduction of the French brand; a move that hinges on the success of the Duster SUV (above).

If all goes as planned the Penske-owned Saturn brand could be selling rebadged vehicles from French automaker Renault in the U.S. Thought to be a wild rumor at first, Renault has now confirmed that Penske has in fact approached the automaker to supply both parts and cars.

The rumor mill keeps churning out new and exciting candidates interested in buying GM’s Saturn brand. The most recent speculation is that Nissan/Renault might be interested.

After recently launching the new Mégane model, Renault brought its powerful sibling, the Mégane R.S. (Renault Sport) to the Geneva Auto Show. 

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