On the sidelines of the ongoing 2012 Paris Auto Show, partners Daimler, owner of the Mercedes-Benz and Smart brands, and the Renault-Nissan Alliance, confirmed plans to collaborate on two more powertrain projects, including a petrol engine and an automatic transmission.

The first project is a jointly developed 4-cylinder turbocharged gasoline engine family. The direct-injection petrol unit is said to deliver significant improvement in fuel economy as well as low emissions.

The two automakers will jointly manufacture the new engines that will debut in Daimler, Renault and Nissan vehicles in 2016.

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