The Renault-Nissan Alliance has furthered its alliance with German carmaker Daimler after agreeing to manufacture Mercedes-Benz four-cylinder petrol engines at its Decherd, Tennessee, assembly plant.
Its engines will be used for both Infiniti and Mercedes-Benz models with production to start in 2014. It will have installed capacity of 250,000 units per year.
According to Dr Dieter Zetsche, the chairman of the Daimler board of management and head of Mercedes-Benz cars, the extension of the co-operation with Renault-Nissan will allow the company to realise near market production in the region with attractive economic terms. The agreement marks the first time that Mercedes-Benz engines will be produced in the North America Free Trade region. The Tennessee plant is closely linked to the Tuscaloosa, Alabama, plant where the Mercedes-Benz C-Class is currently manufactured.
It’s not the first time that Daimler and Renault-Nissan have worked together, having formed a strategic partnership back in April, 2010. So far the collaboration has included three pillars: a joint Smart/Twingo architecture which will see the two-seat Smart vehicles produced at Daimler’s plant in Hambach, France, while the four-seat Smart and Renault Twingo will be produced in Novo Mesto, Slovenia; an all-new entry level city van project for Mercedes-Benz scheduled for late 2012; and the cross-supply of powertrains.
In addition, the companies have already agreed to team up on electric vehicles with Daimler providing batteries from its production facility in Kamenz, Germany, for use in both the Smart and Twingo ZE.
