This news is good for Smart, as the company has long been struggling to turn a profit and the deal guarantees its future. A short wheelbase platform being developed by the new pairing will underpin the next generation Smart, as well as the Renault Twizy and a new Nissan small car to take on Toyota's iQ. A longer wheelbase will also be used, which could provide a replacement for the short-lived Smart ForFour.
The move also increases the chance of a full production electric Smart, given that the Twizy is currently an electric-only concept.