In an unusual move akin to the Saabaru of recent years, Mercedes and Nissan have announced that Nissan will build four cylinder engines for use in an Infiniti and the Mercedes C-Class.

“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 engines will be produced in Nissan’s Decherd, TN engine plant. The reason? A favorable exchange rate: “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” said Charles Ghosn, CEO of Renault-Nissan.

Daimler’s CEO Dieter Zetsche said the move would fit in with Daimler-Benz’s 2020 expansion program.

As a result of this project, Daimler-Benz and Renault-Nissan each now own 3.1 percent of each other’s stock. Infinit declined to comment as to which Infiniti(s) will use the four banger.

- By: Sawyer Sutton