Daimler seeks new small car partner for 2010

One of these firms is thought to be French car manufacturer Renault, with the new partnership rumoured to form from as early as mid-2010.

Daimler’s luxury car brand, Mercedes-Benz, plans to launch four new compact cars to replace the current A- and B-Class models when they reach the end of their product cycles towards the end of next year.

Both Daimler and Renault have previously admitted to be in talks over a new family of small cars, with Daimler looking for a new range of engines for its models and Renault seeking a low-cost platform for its cars.