According to a new report in The Wall Street Journal, there is a deal pending between Renault-Nissan and Daimler to partner on things like engines and platforms, as well as further development on matters that could help increase fuel efficiency.

Chief executive officers Dieter Zetsche and Carlos Ghosn today spelled out the small print of the major co-operation, which is set to include:

Purchasing, engineering and component sharing across the board
Jointly developed small cars to begin with, and vans
A swapping of 3.1% equity stakes in each other's capital
Renault-Nissan small 3cyl and 4cyl petrol and diesels to be used in new Smart Fortwo and new small Mercs
Merc petrol and diesel engines to power future Infiniti models
Combined electric strategy seeking common approaches where possible
Each brand to be tuned to suit its characteristics
Next Fortwo and Twingo to be rear-wheel drive
Two- and four-seater versions available from 2013 with electric options from launch
Merc Vito van to use Renault-Nissan diesels and transmissions, new smaller Merc CV based on Renault Kangoo from 2012
This co-operation doesn't affect existing partnerships, such as with BMW on larger car component sharing

Cooperation on engines and transmissions will extend further, with Renault-Nissan providing powertrains for a future range of Mercedes-Benz compacts, as well as the Smart and Twingo models. Daimler in turn will make its larger gasoline and diesel engines available for Infiniti.

Renault will also supply Daimler with a small delivery van, to be assembled in Maubeuge, northern France, as well as engines and transmissions for the mid-sized Mercedes Vito.

The deal is "important for Renault-Nissan and Daimler to compete against Toyota and Volkswagen-Suzuki," said Tatsuya Mizuno, director of Mizuno Credit Advisory in Tokyo. "The alliance will help the companies lower costs in emerging markets, and in green technology."