Nissan to Build Mercedes Engines In US Plant, Will End Up In Infiniti Models Too

Nissan Motor Co. and Daimler AG have officially confirmed plans to produce 4-cylinder Mercedes Benz diesel engine at Nissan’s Tennessee plant starting in 2014.

Brief: In a joint partnership between Nissan and Daimler, the Japanese brand will build 4-cylinder Mercedes Benz diesel engines at its US plant. These engines will also be utilized by unnamed Infiniti models in 2014.

Nissan to build Mercedes Benz engines in 2014, will cross over to Infiniti too

The joint statement added that the operation would allow for quarter a million engines to be built per year “once full ramp-up is achieved.” In addition to being utilized by Mercedes Benz models, the Nissan-built engines will also make their way into Infiniti models in 2014.

The effort is part of an agreement between Daimler and Nissan-Renault to share vehicle and powertrain technologies.

“This is the newest milestone in our pragmatic collaboration and our most significant project outside of Europe so far,” Nissan-Renault CEO Carlos Ghosn said in the statement today. “Localized 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.”

A Nissan-Renault spokeswoman declined to comment when she was questioned as to which Infiniti model would be getting the newly designed Mercedes Benz diesel engine.