Daimler is reportedly in talks with several firms over a deal to form a new partnership to help build a new generation of compact cars. One of these firms is thought to be Renault and according to reports coming out of Germany, the new partnership could be formed as early as mid-2010.

The information was revealed by Daimler CEO Dieter Zetsche during a recent interview with German daily Handelsblatt.

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.

[Automotive News, sub req’d]

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