Renault diesels will find their way into FWD Mercs.

In the global drive to cut costs by achieving greater efficiency of scale, carmakers are increasingly scratching each others backs in the form of technology sharing.

Now Renault-Nissan and Daimler AG have revealed some of the finer details of their technical alliance that was signed earlier in the year.

What this means is that the next Mercedes-Benz C-Class will be powered by the same 1.5-litre 8-valve dCi engine that powers the Nissan NP200.

Just kidding. In truth, the deal actually seems quite inspiring. Firstly, Renault will supply Mercedes-Benz with its brand new 95kW 1.6-litre turbodiesel engine for use in the next A- and B-Class models, which will be built on a new front-wheel drive platform, sans 'sandwich-floor' construction.

Mercedes-Benz will then meet its end of the bargain by providing a 2-litre four-cylinder petrol engine to Renault-Nissan. Apparently, the German carmaker will also open the door to Renault-Nissan using certain of its V6 and V8 petrol motors.

This has many positive implications for Nissan's upmarket sedans, sports cars and SUVs - especially if we're talking AMG power here.

It's been reported that Daimler and Renault-Nissan will also jointly develop a range of small 3- and 4-cylinder powerplants for use in smaller Nissans, Renaults, Smarts and Mercs.