Report: Nissan, Daimler kick off construction at new plant to build Infiniti and Mercedes engines

Daimler and Renault-Nissan first announced their strategic collaboration in April 2010 and almost a year later the alliance has reached a milestone. Tennessee officials today joined Nissan leaders to break ground at a new manufacturing facility in Decherd that will be producing 4-cylinder gasoline engines for Infiniti and Mercedes-Benz models.

“Today, we begin an exciting new chapter for the Renault-Nissan Alliance and our continued investment in the United States,” said Nissan’s Vice President Production Engineering and Component Facilities, Mark Swenson. “Today’s groundbreaking marks the latest move in our collaboration with Daimler to localize production capacity and enhance our competitiveness in the global market.”

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Production of the new engines will kick off in 2014 with a target capacity of 250,000 units on an annual basis. The plant is expected to create up to 400 jobs.

For Nissan, the plant’s 4-cylinder engines will eventually end up in the entry-level Infiniti sedan, and for Mercedes the plant will ensure a direct supply of 4-bangers for the C-Class.

– By: Omar Rana