Infiniti will be offering models with Daimler-sourced four- and six-cylinder petrol and diesel engines within two years, as a result of the tie-in between the two companies announced today.

Work on the engine sharing project began "several months ago", according to sources. It will save Nissan around a billion Euros in development costs over the next five years.

Nissan senior vice president Andy Palmer told Autocar that "the key is keeping the identity of the Infiniti brand. Our engineers are working on that; to ensure the engines we produce are to our taste, they will be retuned to be more sporty."

"Working with Daimler gives us access to engines we couldn't afford to develop ourselves," Palmer went on, "and pitches us into some key markets, especially with the diesel options. It also solves a developing problem we have with the Renault-sourced 3.0-litre V6 diesel, which won't meet EURO VI emissions requirements."

Palmer also confirmed that an Infiniti BMW 1-series rival is planned, and that it will use Daimler technology, but he said it will only go on sale after Infiniti's electric car, a Nissan Leaf spin-off, is launched.

"A small car for the European market is a strong probability, not a possibility," he said. "We have looked at what Lexus is doing with the CT200h, and it's clear that the market for small premium vehicles is growing." "We don't necessarily want to follow the Lexus hybrid model, but we do want a rival for the 1-series and Audi A3."

Nissan is also planning a van-based spin-off of the Leaf. Both that, and Infiniti's Leaf variant, are likely to be built in Sunderland.

Jim Holder