Daimler-Renault alliance approved, report says

An international alliance between Daimler and Renault has been approved by the companies' boards and is set to be announced on Wednesday, Bloomberg is reporting.

The pact would allow the German and French automakers to collaborate on a range of products, including small cars, commercial vehicles and engines.

AutoWeek first reported on the alliance last week. The arrangement could save the companies billions of euros in savings annually. It also would have broad implications across the companies' product lines, including Mercedes-Benz, Smart, Renault and Nissan.

An equity swap is also likely, with each automaker taking about a 3 percent stake. A press conference with Daimler chairman Dieter Zetsche and Renault chairman Carlos Ghosn is scheduled for Wednesday.

The deal between the two European companies is another step in an industry-wide consolidation that experts have been anticipating for years. Volkswagen bought a stake in Suzuki last year following its takeover of Porsche. Fiat took a share of Chrysler and has run the U.S. automaker since it exited bankruptcy last year.

By Greg Migliore