According to a report published in Japan's Nikkei newspaper, Nissan-Renault and Daimler are in three-way talks over a potential exchange of larger engines (from Daimler) for electric car and battery technology (from Nissan-Renualt).
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The report of three-way negotiations, including a possible equity tie-up, emerged last week. Nissan CEO, Mr Carlos Ghosn, who also heads Renault, said only that he is "open to an equity exchange".

Mr Ghosn will brief Nissan executives this week on the details and aims of Renault's comprehensive partnership talks with Daimler, the paper said.

The report said an agreement could be reached ahead of Daimler's general shareholders meeting on April 14, but says the German firm is cautious about forming a capital tie-up.

Separately, a Nissan spokesman told Nikkei that the Japanese manufacturer plans to produce 3,698,000 million vehicles in the financial year to March 2011. The figure is a 13 per cent rise from the projected figures for the 2009-10 business year.

The increase in production is expected to come from Nissan's new Micra model, which it began making in Thailand this month, and the expansion of its Murano SUV lineup in to Russia at the beginning of next year.