It's a Four-Wheel Three-Way as Nissan, Renault and Daimler Plan Alliance

German carmaker Daimler, France's Renault and Japan's Nissan Motor plan to announce a three-way partnership that includes cross-shareholdings, according to media reports Tuesday.

The announcement could come as soon as Wednesday, The Wall Street Journal reported, citing an unnamed source familiar with the matter.

Renault and Nissan would take stakes of about three percent each in Daimler, while Daimler might acquire similar or slightly bigger stakes in the two carmakers, according to the WSJ.

The partnership between the three carmakers is expected to include cooperation on small-car platforms and fuel-efficient technologies, the report said.

Stuttgart-based Daimler makes Mercedes-Benz cars, as well as Daimler trucks and buses. It also produces the Smart car.

Renault and Nissan began cooperating over a decade ago, with an alliance in 1999. Today, Renault has a 44.3 percent stake in the Japanese firm, while Nissan owns 15 percent of Renault. Their major areas of cooperation are purchasing and research and development, including shared platforms and common parts.

There is good cost-savings potential from the alliance, according to Juergen Pieper of Metzler Equities in Frankfurt. But Renault and Nissan have more to gain from such an alliance than Daimler, because they would be getting a partner with a better brand reputation, he said.