Nissan US to make engines for Daimler and Infiniti

NISSAN Motors and Daimler said yesterday they would produce Mercedes-Benz gasoline engines at Nissan’s Tennessee factory from 2014 to be fitted on Mercedes and Infiniti models.

Production capacity of the four-cylinder engines will reach 250,000 a year at full ramp-up, the companies said. The project is the latest between Daimler and the alliance of Nissan and Renault, which are exploring ways to share vehicle, engine and other technologies to save development costs and respond faster to market needs.

It also marks the first production of Mercedes-Benz engines in North America, where the German automaker is looking to build a stronger manufacturing footprint. The engines will power the brand’s C-Class cars built at Daimler's Alabama plant. Nissan’s Tennessee plant makes engines for US-produced Nissan and Infiniti models, and built more than 580,000 engines last year.