French automaker Renault first announced the launch of a new high-end model that would borrow technology from Mercedes-Benz in early February. We’ve known for a while now that Mercedes has formed an alliance with Renault and Nissan working on several models the first of which are expected to be replacements for Renault Twingo and Smart ForTwo.

Renault is not looking to launch just one high-end model but an entire sub-brand called “Initial Paris” that would be used for a handful of premium models. The DS line, the newly established ‘8’ series of models from Citroen and Peugeot and the premium models from Renault would be targeted primarily at customers in markets such as China and India.

Apparently Renault needs to work with other automakers, like Mercedes-Benz, to help spread the level of investment required to develop the new models. From what we hear a luxury sedan based on the Mercedes-Benz E Class, will replace Renault’s current flagship, the Latitude sedan. Renault is also expected to revive its legendary Alpine name for a new performance sub-brand. To gauge interest for a potential sports car offering a striking Alpine Renault was unveiled. For performance models, Renault is more likely to team up with Nissan or Lotus rather than Mercedes-Benz. The company will soon cater to a much wider audience with four separate brands Dacia in the low-end market, Renault for mainstream buyers, Initial Paris for the upper end of the market and Alpine for performance fans.