Mercedes-Benz’s parent company Daimler and the Renault Nissan alliance have jointly announced the extension of their partnership into developing new cars and setting up a plant in Mexico for them.

Daimler AG and Nissan will form a 50/50 partnership that would need a $1.36 billion investment to develop new small cars in the premium segment, ultimately manufacturing them at a newly built Mexico factory. The new plan is a step that would see the consolidation of the partnership at the Mercedes-Benz and Infiniti brands level.

The “joint development of compact premium vehicles and joint production in Aguascalientes together represent one of the largest projects” for the alliance and Daimler, said Renault Nissan CEO Carlos Ghosn.

Nissan already owns a huge, $2 billion manufacturing complex, in Aguascalientes in central Mexico, where the companies also plan to construct the new manufacturing facility – which should have an annual production capacity of 300,000 units.

Both brands will market the jointly developed and built models on worldwide markets, even as the focus would also definitely be put on the key US premium market. Infiniti would get a year’s worth of head start, rolling out the first model in 2017, followed by Mercedes.

Sources say that Infiniti and Mercedes both plan to build at least three models each – a sedan, a coupe and a compact crossover – while the companies have so far revealed no details for the models to be made in the new plant.

Via Reuters


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