January 8, 2012
!! Nissan And Daimler To Produce Engines Together In North America
In The Latest Step Forward In The Collaboration Of The Renault-Nissan
Alliance And Daimler, Nissan's Decherd, Tenn., Plant Will Build
Mercedes-Benz 4-cylinder Engines For Infiniti And Mercedes-Benz
Starting In 2014. !!
DETROIT (Jan. 8, 2012) -Nissan and Daimler will produce Mercedes-Benz
4-cylinder gasoline engines together at Nissan's powertrain assembly
plant in Decherd, Tenn. Production will begin in 2014, with installed
capacity of 250,000 units per year once full ramp-up is achieved. The
Decherd facility will produce engines for Mercedes-Benz and Infiniti
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."
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 Tuscaloosa, Ala.
"In the context of our Mercedes-Benz 2020 growth strategy, we have
decided that we 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," Dr. Dieter
Zetsche, Chairman of the Daimler Board of Management and Head of
Mercedes-Benz Cars, said. "Thus we are systematically broadening our
manufacturing footprint in this important growth market."
Nissan began powertrain assembly in Decherd 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. In 2011,
Decherd produced more than 580,000 engines on a covered area of more
than 1.2 million square feet (111,000 square meters).
Project portfolio expands
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:
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. All-new entry-level city van project for Mercedes-Benz: The
project is on schedule with expected launch in late 2012. 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 had also earlier 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.
###
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Nissan and Daimler to produce engines together in North America
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