PARIS -- Renault and Daimler are in talks to jointly develop at least one large van model, giving fresh impetus to a partnership that has tailed off, two sources close to the matter said.
Renault, which is seeking new partnerships including in areas such as electric battery production as it works to slash costs and boost margins, has an alliance with Daimler that dates back to 2010.
The cooperation has stalled, however, since Daimler's Mercedes-Benz decided to ax its slow-selling X-Class pickup. The model shared underpinnings with the Renault Alaskan and alliance partner Nissan's Navara.
Daimler also ended its cooperation with Renault for its Smart brand. The minicars, which share technology with their platform sibling, the Renault Twingo Z.E., were built in France but were moved to China under a joint venture with Zhejian Geely Holding Group, Daimler's biggest single shareholder.
Renault Chairman Jean-Dominique Senard said in June that the automaker wants to boost its alliance with Daimler.
But other joint projects have also tailed off over the years, partly because Daimler has cut back on purchases of Renault diesel motors, leading to questions over whether the partnership had a future.
The pair could now team up in some capacity to work on the next generation of Renault Master vans, which are made at Renault's Batilly plant in northeastern France, the two sources with knowledge of the discussions said. They said that talks may yet lead nowhere and have not yet concluded.
Representatives of both Renault and Daimler declined to comment.
Demand for vans of all sizes has jumped amid the COVID-19 pandemic, fueled by e-commerce deliveries as people have ordered more goods from home during lockdowns.
Renault faces increased competition in the van segment.
Ford and Volkswagen Group said last year that, as part an alliance they announced in 2019, they would collaborate on developing two vans.
And Stellantis, formed last month by the merger of Fiat Chrysler Automobiles and PSA Group, will combine the van-making resources and manufacturing scale of the two companies.
Automotive News Europe contributed to this report
