Renault-Nissan and Daimler announced Friday their intention to jointly invest one billion euros to develop and produce a new plant in Mexico, the next generation of small compact cars Mercedes and Infiniti.
Both groups indicated that this investment would be shared equally. The project, which Reuters had already echoed in March, will enable Daimler to increase its production in North America and Nissan to increase its production capacity on Mexican soil to more than one million vehicles.
The new joint plant with an annual capacity of 300,000 units, will be released on the production site of Nissan's Aguascalientes. The plant is expected to begin producing Infiniti cars, upscale Nissan brand, as of 2017, followed by Mercedes cars in 2018.
"The joint development of compact premium vehicles in Aguascalientes and joint production are one of the most important projects between the Renault-Nissan Alliance and Daimler," said Carlos Ghosn, CEO of Renault-Nissan. "It also shows that our collaboration forged in Europe, has become global in scope."
The project will be 5,700 new jobs by 2021, when the site reaches full capacity. On other continents, new vehicles produced in common in Mexico are assembled in separate plants of both partners.
Renault-Nissan and Daimler are associated since 2010, and each hold 3.10% stake in the other. As part of this partnership, Renault already provides small Daimler engines produced in France for a Mercedes van based on the Kangoo and Daimler developed the architecture of the new Twingo and Smart next four places.
Nissan has meanwhile established since 1966 in Mexico, where it opened its first plant outside of Japan and is now the leading automotive brand with 25% market share. The production capacity of the group on site is currently 850,000 units, and eventually exceed a million thanks to the new plant, with outlets in North America - USA and Canada - as in South America, two areas of the world where auto demand is booming.
Renault has its next production sites in Colombia, Argentina and Brazil, its second largest market after France, but the possibility of producing a car of the diamond group at its Japanese partner in Mexico has so far never materialized.
"There have been many studies on the production of a Renault car in Mexico, they never led to a positive conclusion," Ghosn said in a press conference broadcast on the internet. "This does not mean that they will not result in the future, but for now there is no decision in this direction."
Both groups indicated that this investment would be shared equally. The project, which Reuters had already echoed in March, will enable Daimler to increase its production in North America and Nissan to increase its production capacity on Mexican soil to more than one million vehicles.
The new joint plant with an annual capacity of 300,000 units, will be released on the production site of Nissan's Aguascalientes. The plant is expected to begin producing Infiniti cars, upscale Nissan brand, as of 2017, followed by Mercedes cars in 2018.
"The joint development of compact premium vehicles in Aguascalientes and joint production are one of the most important projects between the Renault-Nissan Alliance and Daimler," said Carlos Ghosn, CEO of Renault-Nissan. "It also shows that our collaboration forged in Europe, has become global in scope."
The project will be 5,700 new jobs by 2021, when the site reaches full capacity. On other continents, new vehicles produced in common in Mexico are assembled in separate plants of both partners.
Renault-Nissan and Daimler are associated since 2010, and each hold 3.10% stake in the other. As part of this partnership, Renault already provides small Daimler engines produced in France for a Mercedes van based on the Kangoo and Daimler developed the architecture of the new Twingo and Smart next four places.
Nissan has meanwhile established since 1966 in Mexico, where it opened its first plant outside of Japan and is now the leading automotive brand with 25% market share. The production capacity of the group on site is currently 850,000 units, and eventually exceed a million thanks to the new plant, with outlets in North America - USA and Canada - as in South America, two areas of the world where auto demand is booming.
Renault has its next production sites in Colombia, Argentina and Brazil, its second largest market after France, but the possibility of producing a car of the diamond group at its Japanese partner in Mexico has so far never materialized.
"There have been many studies on the production of a Renault car in Mexico, they never led to a positive conclusion," Ghosn said in a press conference broadcast on the internet. "This does not mean that they will not result in the future, but for now there is no decision in this direction."
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