Announcing their latest collaboration, Daimler and Renault-Nissan have declared that they will begin building 4-cylinder engines at Nissan’s powertrain assembly plant in Decherd, Tennessee beginning 2014. The Decherd facility will produce engines for Mercedes-Benz and Infiniti models and at full capacity is expected to churn out 250,000 engines annually.
Nissan’s Tennessee plant ensures a strategic location and logistics link, as it guarantees a direct supply of engines for the Mercedes-Benz C-Class, built at Daimler’s vehicle plant in Tuscaloosa, Alabama. Said Dr. Dieter Zetsche, Chairman of the Daimler Board, “In the context of our Mercedes-Benz 2020 growth strategy, we have decided that we will expand the production capacities required for this close to the customers. Through the strategic extension of our cooperation with Renault-Nissan we can realize near-market engine production in the NAFTA region on attractive economic terms and make optimum use of synergies arising from the cooperation.”