BRUSSELS (

TheStreet

) -- The

Renault

and

Nissan

(NSANY)

alliance unveiled Wednesday a broad strategic cooperation agreement with Germany's

Daimler

( DAI).

The Renault/Nissan alliance will take a 3.1% stake in Daimler, while Daimler will get a 3.1% stake in Renault and a 3.1% stake in Nissan.

"Daimler and the Renault-Nissan Alliance are combining common interests to form a promising foundation for a successful, strategically sound cooperation that is based on a number of very concrete and attractive project cooperations. Our skills complement each other very well," said Dieter Zetsche, Daimler chairman.

The company said the agreement would strengthen the companies' competitiveness in the small and compact car segment.

Specifically, the companies will collaborate on the next-generation smart fortwo and Renault Twingo, including electric versions, as well as expand the smart andTwingo families.

-- Reported by Joseph Woelfel in New York.

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