Renault denies collaboration with Mitsubishi [Update]

Update: Renault has issued a press release saying that the discussions have ended without leading to a cooperation agreement.  Mitsubishi will continue its partnership with Daimler and Nissan, however.

Renault has confirmed that it is weighing the pros and cons of collaborating with Mitsubishi.

Nissan, Renault's strategic partner, is already working with Mitsubishi on several projects around the globe, including a joint-venture that manufacturers and sells kei cars in Japan.  Renault is looking at ways to take advantage of its partner's close ties with Mitsubishi in order to develop common projects that will reduce research and development costs.

"We're looking at areas of potential collaboration but nothing has been decided yet, we're still exploring all of our options.  What we're seeking is roughly the same type of partnership that we have with Daimler," explained an anonymous inside source in an interview with French newspaper Le Figaro.

Renault and Daimler have collaborated on several projects over the past couple of years.  In Europe, Mercedes sells a version of the Kangoo commercial van under the name Citan and it uses a Renault-sourced 1.5-liter dCi four-cylinder engine in its B-Class and A-Class sub-compacts.  In exchange, Renault will get its own version of the third-generation smart fortwo.  

The key difference between Renault's proposed deal with Mitsubishi and its tie-up with Daimler is that the two parties will not purchase a stake in one another. 

The announcement of a potential Renault - Mitsubishi collaboration has raised eyebrows in France because the latter has several contracts and a  jointly-owned factory in Russia with PSA Peugeot - Citroën, Renault's fiercest rival.