Nissan and Daimler will build engines together in the US from 2014. The engines will power a range of upcoming Infiniti vehicles, as well as future Mercedes-Benz models.
“This is the newest milestone in our pragmatic collaboration and our most significant project outside of Europe so far,” said Renault-Nissan CEO Carlos Ghosn.
“Localized capacity reduces exposure to foreign exchange rates while rapidly enabling a good business development in North America – a win-win for the Alliance and Daimler.”
Daimler chairman of the board of management and Mercedes-Benz Cars head Dieter Zetsche said in the context of the company’s Mercedes-Benz 2020 growth strategy, it has decided that it will expand the production capacities required for this close to the customers.
The plant in Decherd, Tennessee, which is about 67 miles (108 kilometers) northwest of Chattanooga, began production in 1997. It builds 4-, 6- and 8-cylinder engines for U.S.- manufactured Nissan and Infiniti vehicles, Nissan said. Last year, more than 580,000 engines were made at Decherd, the company said.
The Renault-Nissan alliance collectively holds a 3.1% stake in Daimler and the German luxury car maker has an equivalent stake in each of its two alliance partners.