Daimler reportedly is expanding cooperation with Renault and Nissan to develop electric cars in a race to meet tightening emission reduction rules.

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“We won’t be able to meet the target of 95 grams CO2 in 2020 without electric vehicles with batteries and fuel cells,” Thomas Weber, Daimler’s chief developer, told Reuters in an interview.

He was referring to an EU target of an overall level of around 95 grams of carbon dioxide per km by 2020 for new cars sold in Europe.

But the new technology was still in its infancy and “it won’t be easy to then also earn money with these cars,” Weber added.

Broadening its existing partnership with Renault and Nissan into this area should cut costs by building scale. The alliance has Nissan Leaf and several Renault all electric models ready for commercial sale.

Renault, its Nissan and Daimler signed a cooperation deal in April initially focusing on small cars, light commercial vehicles and engines.

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