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Mercedes-maker Daimler and Nissan to invest on new factory in Mexico

Mercedes Benz-maker Daimler AG and Nissan Motor Co. are now together investing $1.36 billion to plan for a new development of premium small cars to be designed in new factory at Mexico. The companies stated that they are on the verge of giving the shape to their final project of the developing Mercedes-Benz and Infiniti brands. The target set is of producing 300,000 vehicles in Aguascalientes in central Mexico, right where Nissan was built with an approx investment of $2 billion.diamler-renault-nissan-press-conference

The speculation says that the first lot of Infiniti will roll out in 2017 followed by the Mercedes which is deliberately going to be marketed at the global level. The companies are looking forward of producing the multiple variants such as sedans, coupes and crossovers. They are believed of sharing the similar nuances for developing the small-car platform but the vehicles to be produced in Mexico are not specified.  However, one could always guess from the fact the companies CEO had been looking for a considerable site for producing the jointly on Infiniti Q30 and Mercedes-Benz GLA compact crossover vehicles. The idea is to cut the cost and becomes a significant player in the premium sector.


Building car in Mexico would definitely savings in the front of labor rates and the currency and tariff cost. Mexico is cheaper in much sense, in comparison to Germany, Japan and United States. Charlos Ghosn the chief executive of Renault-Nissan said in a statement:

“Joint development of compact premium vehicles and joint production in Aguascalientes together represent one of the largest projects between the Renault-Nissan Alliance and Daimler. It also shows how our collaboration, which began in Europe, has become global in scope”

The question was posed to Infiniti cars as well, on the fronts of developing cars factories in Europe, but the company’s spokesperson said there is no need of it. Daimler Chief Executive Dieter Zetche remarkably said that company will not suppose for any kind of merger, rather will follow-up 5,700 jobs in 2021 and the adding up 10,000 jobs related to suppliers and related enterprise.

Although, Mercedes, Nissan and Renault has been sharing engines and plants and other smaller parts as the companies have conformed the reciprocal shareholdings. On Wednesday, Infiniti, Daimler started with producing the four-cylinder engines at Tennessee for incorporating the same in Mercedes-Benz C-class and the Infiniti Q50.

  • Teams will work closely on development of next-generation compact vehicles for both Mercedes-Benz and Infiniti
  • New plant in Aguascalientes, Mexico, will add nearly 5,700 additional workers and annual capacity of 300,000 vehicles when fully ramped up
  • Companies will equally divide investment costs of approximately €1 billion

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About Ariana Whitmore

She has been writing columns on consumer gadgets since 2010. Her areas of interests include smartphones, tablets, mobile OS and apps. She holds M.C.S. degree and working on her startup, which aims to solve IT support issues.

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