STUTTGART, GERMANY - Daimler AG and Robert Bosch GmbH said they plan to expand their longtime partnership and collaborate in the development and production of electric motors for all-electric vehicles in Europe. 

The companies have signed a letter of intent. Joint production is set to start in 2012.

The electric motors developed are expected to be used in Mercedes-Benz and smart electric vehicles. Subsequent sales to other automakers will be handled by Bosch. The joint activities will be located in the greater Stuttgart area and in Hildesheim.

The Bosch Group is a leading supplier of technology and services to the automotive sector.