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Nissan, Daimler to build Mercedes engines in US from 2014

ABR Staff Writer Published 09 January 2012

Nissan and Daimler will jointly build Mercedes-Benz 4-cylinder gasoline engines at Nissan's powertrain assembly plant in Decherd, Tennessee, US.

The production of engines is expected to start in 2014, while both the companies plan to produce up to 250,000 engines per year once the project is in full capacity.

The engines will power a range of upcoming Infiniti vehicles, as well as future Mercedes-Benz models.

Renault-Nissan CEO Carlos Ghosn said this is the newest milestone in the company's pragmatic collaboration and its most significant project outside of Europe so far.

"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," Ghosn said.

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.

"Through the strategic extension of our cooperation with Renault-Nissan we can realize near-market engine production in the NAFTA region on attractive economic terms and make optimum use of synergies arising from the cooperation," Zetsche said.

Currently, the Decherd facility manufactures four-, six- and eight-cylinder engines for the complete lineup of US-built Nissan and Infiniti vehicles.

The Decherd plant also houses crankshaft forging and cylinder block casting operations, whereas in 2011, it produced more than 580,000 engines.