Eco-friendly cars creating alliances among car companies

The need to spread the huge costs of developing modern eco-friendly cars was the key factor in negotiations that led to Wednesday’s announcement of a loose capital tie-up between the Nissan-Renault alliance and Germany’s Daimler AG.

While demand for eco-cars is expected to increase because of stricter regulations for carbon dioxide emissions, development costs for these cars can be prohibitive for a single automaker.

The three companies instead hope to share each other’s technologies, allowing them to develop a wider range of fuel-efficient cars at lower cost.

Read the rest of the story: Huge eco-car bill prompts tie-up