Nissan to build Infiniti / Mercedes engines in Tennessee image

Nissan, the Japanese automaker has broken ground on an engine plant in Decherd, Tennessee that will assembly engines for Nissan’s luxury Infiniti brand and Mercedes Benz models.

More precisely, the engines will be supplied for the Mercedes-Benz C-Class (along with a reported new SUV to compete against the BMW X6 and Acura ZDX), which is built at a Daimler plant in Tuscaloosa, Ala.

Production of the new engines at the new facility, which will have a capacity to produce 250,000 units per year, is expected to begin in 2014 and will also create about 400 jobs.

Daimler and the Renault-Nissan Alliance first announced their strategic collaboration in April 2010 and are extending their reach into the United States as part of both companies’ growth strategy.

The companies are also moving forward with a vehicle platform sharing initiative between Infiniti and Mercedes, and development of zero-emission vehicles. The decision to begin jointly producing engines in the U.S. marks the two organizations’ collaborative effort’s largest venture outside of Europe.

With two years remaining before the plant is finished and operational, even Renault-Nissan/Daimler may not have completely finalized their plans. All we know for sure is that four-cylinders will be built in the U.S. for use in both Infiniti and Mercedes-Benz vehicles.