According to a report from Autocar UK, Renault and Mercedes are teaming up to design a new, modular small car platform that will form the basis for a new Smart Car, a new Renault City car and the upcoming Renault Twizy EV. In addition, the two companies are jointly developing new engine platforms to power these vehicles—well, the gas versions anyway.

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Over the last few months, several big car makers, including Nissan, Subaru and Mitsubishi, have announced plans to produce all-electric cars before the end of the decade, or soon after. Now Daimler has announced that it to plans to jump on the growing EV bandwagon, with plans to roll-out a Mercedes-Benz electric car in 2010. According to Chief Executive Dieter Zetsche, the company also plans to offer an electric Smart car in the same year.

At this stage, it’s unclear whether the cars will be based on an existing model, or on a completely new platform. If the former, it’s likely that the Mercedes EV will be based on either an A-Class or B-Class, as is the case with their fuel-cell prototype (pictured below).

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