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Daimler and Renault-Nissan Alliance invest €1 billion for small cars

Renault Nissan Daimler

Renault-Nissan Alliance and Daimler AG have now announced joint development of premium compact vehicles and joint production in Mexico in expanding their cooperation. Renault-Nissan CEO Carlos Ghosn and Daimler CEO Dieter Zetsche announced the 50:50 JV earlier today.

Renault Nissan DaimlerDaimler and Nissan are sharing total investment cost of about approximately €1 billion at the new plant being built in Aguascalientes in north-central Mexico, close to Nissan’s existing plant.

Full production capacity will be 300,000 vehicles, expected in 2021 by which time 5,700 jobs (engineering, line workers and support staff) will be created. Production is intended to begin in 2017 with Infiniti models. Production of Mercedes-Benz cars will begin in 2018. This is one of the largest projects between Renault-Nissan Alliance and Daimler, and reflects global intent, coming about 4 years after the cooperation was founded in April 2010 with 3 “pillar projects” primarily focused on Europe. Over time, 12 projects have been undertaken.

Collaboration at all stages between Infiniti and Mercedes-Benz ensures that vehicles within the project scope differ from each other in terms of design and specs. This week, Infiniti and Daimler launched production of four-cylinder gasoline engines in Decherd, Tennessee, USA at an annual production capacity of 250,000 units for use in the Mercedes-Benz C-Class and in the Infiniti Q50.

Renault-Nissan Alliance and Daimler begins selling next-gen smart and Twingo city cars developed on a shared platform later this year. Twingo and four-seater smart is being produced Renault’s Novo Mesto plant, Slovenia, and two-seater smart in Hambach, France.


About the author

Nabanita Singha Roy

Nabanita Singha Roy

Love for a red car has with experience transformed to a detailed outlook for around the clock news from Nabanita Singha Roy. Starting out as auto blogger in 2009, her inextricable editorial approach guarantees diverse storylines for a widely enthusiastic automotive readership.

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