French company Renault and Japanese car maker Nissan already have an alliance dating back to 1999.
The three way tie-up is designed to help with development and technology costs and to give the partners the benefits of scale.
The car market has suffered during the global downturn and government support offered in many territories, for instance Germany and the UK, through the crisis is now coming to an end.
The industry is looking to the creation of more fuel efficient and environmentally friendly vehicles to safeguard its future.
Daimler did merge with Chrysler in 1998 but the two marques parted company in 2007.