Dow Jones reported that French car maker Renault SA isn't planning to increase its stake in German rival Daimler AG.

Daimler entered a partnership with the French automaker and its Japanese alliance partner Nissan Motor Corporation to develop a new generation of small cars, share engines and cooperate in small commercial vans to benefit from economies of scale.

As part of the deal, Renault and Nissan will each acquire a 1.55% stake in Daimler, while the maker of Mercedes Benz cars will acquire a 3.1% stake in both Renault and Nissan. There has been ongoing speculation that Renault is planning to increase its stake in Daimler.

Mr Carlos Ghosn head of Renault said that "No, we're not planning that. Renault Nissan also expects to achieve a profit for 2010. As for the group, including Nissan, we expect to be in the black in any case. But I'm also very optimistic that the brand Renault by itself will also be profitable in 2010."

In 2009, Renault, which has a stake of about 44% in Japan's Nissan, posted a loss of more than EUR 3 billion.

(Sourced from www.dowjones.com)