Nissan and Daimler to produce engines in North America

Nissan’s Decherd Plant

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