In the latest step forward in the collaboration of the Renault-Nissan Alliance and Daimler, Nissan's Decherd, Tennessee plant will build Mercedes-Benz 4-cylinder engines for Infiniti and Mercedes-Benz starting in 2014, with installed capacity of 250,000 units per year once full ramp-up is achieved.
"This is the newest milestone in our pragmatic collaboration and our most significant project outside of Europe so far," said Renault-Nissan CEO Carlos Ghosn. "Localised capacity reduces exposure to foreign exchange rates while rapidly enabling a good business development in North America - a win-win for the Alliance and Daimler."
The collaboration marks the first production of Mercedes-Benz engines in the North America Free Trade region. The Tennessee plant's strategic location and logistics links ensure a direct supply of engines starting in 2014 for the Mercedes-Benz C-Class, built at Daimler's vehicle plant in Tuscaloosa, Ala.
Nissan began powertrain assembly in Decherd in 1997. Today it manufactures 4-, 6- and 8-cylinder engines for the complete lineup of US-produced Nissan and Infiniti vehicles. The plant also houses crankshaft forging and cylinder block casting operations. In 2011, Decherd produced more than 580,000 engines on a covered area of more than 1.2 million square feet (111,000 square metres).