Nissan and Daimler will produce Mercedes-Benz engines in NA

Nissan and Daimler will produce Mercedes-Benz 4-cylinder gasoline engines together at Nissan’s powertrain assembly plant in Tennessee. Production will begin in 2014, with installed capacity of 250,000 units per year once full ramp–up is achieved. The Tennessee facility will produce engines for Mercedes-Benz and Infiniti models.

The collaboration marks the first production of Mercedes-Benz engines in the North America Free Trade region. The Tennessee plant’s strategic location and logistics links ensure a direct supply of engines starting in 2014 for the Mercedes-Benz C-Class, built at Daimler’s vehicle plant in Alabama.

Nissan began powertrain assembly in Tennessee in 1997. Today it manufactures 4-, 6- and 8-cylinder engines for the complete lineup of U.S.-produced Nissan and Infiniti vehicles. The plant also houses crankshaft forging and cylinder block casting operations.

Daimler and the Renault-Nissan Alliance launched their strategic collaboration in April 2010, including an equity exchange that gives the Renault-Nissan Alliance a 3.1 percent stake in Daimler and Daimler a combined 3.1 percent interest in Renault and Nissan.

The collaboration began with three project pillars:

1. Joint smart/Twingo architecture: The project is on track for launch in the early first quarter of 2014. Two-seater smart vehicles will be produced at Daimler’s plant in Hambach, France, and four-seater smart and Renault production are slated for Renault’s plant in Novo Mesto, Slovenia.
2. All-new entry-level city van project for Mercedes-Benz: The project is on schedule with expected launch in late 2012. Manufacturing at Renault’s plant in Maubeuge, France.
3. Powertrain cross-supply: The Alliance is supplying Daimler with compact three-cylinder gasoline engines to be used in smart and Twingo vehicles and four-cylinder diesel engines to be used in the jointly developed light commercial vehicle and in Mercedes-Benz’s next generation of premium compact cars. Daimler will supply Nissan and Infiniti with four- and six-cylinder gasoline and diesel engines from the current and future engine portfolio as well as with automatic transmissions.

Since its founding in April 2010, the collaboration has been gradually expanded. In addition to the announcement this week about North American engine production, the companies also decided to partner on:

Platform sharing: Infiniti plans to base a premium compact vehicle on the Mercedes compact-car architecture, starting in 2014.

Zero-emission vehicles: Daimler will provide batteries from its production facility in Kamenz, Germany, and Renault-Nissan will provide electric motors for the use in electric vehicles (smart and Twingo ZE). First releases will occur in 2014.

Comments

[martin]

I think this partnership is a great idea. If I remember correctly the 300c had some Mercedes features/products. Been reading up on the Nissan power train plant and it seems like the've got a lot going on in there. Amazing stuff.