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Just the Facts:
- Mercedes-Benz and the Renault-Nissan Alliance are expanding their collaboration.
- The partners will jointly engines at Nissan's Decherd plant in Tennessee in 2014.
- The Mercedes-Benz four-cylinder engines will be used in the new C-Class and future Infiniti models.
DECHERD, Tennessee — Mercedes-Benz and the Renault-Nissan Alliance are expanding their collaboration, with the production of Mercedes-Benz four-cylinder gasoline engines at Nissan's Decherd plant in Tennessee in 2014 for the new C-Class and future Infiniti models.
The partners said the plant will be able to build up to 250,000 engines a year "once full ramp-up is achieved."
Renault-Nissan CEO Carlos Ghosn said the engine deal — the first time Mercedes-Benz engines have been built in North America — is "our most significant project (together) outside of Europe."
The engines from Tennessee will be shipped to the Mercedes-Benz assembly plant in Tuscaloosa, Alabama, which will build the redesigned C-Class sedan in 2014.
The Decherd plant, which opened in 1997, currently makes four-, six- and eight-cylinder engines for U.S.-built Nissan and Infiniti models.
The partners are broadening a collaboration that began nearly two years ago and has grown to include a variety of joint efforts, among them:
Microcars. The partners will share a new platform for the next-generation Smart Fortwo, which will be assembled in early 2014 by Mercedes-Benz in Hambach, France, as well as the next-generation Renault Twingo and Smart Forfour, to be built by Renault in Novo Mesto, Slovenia.
Entry-level city van. Due in late 2012 is a new Mercedes-Benz compact van based on the Renault Kangoo, to be built by Renault in Maubege, France.
Platform sharing. A new Infiniti compact will be based on the Mercedes-Benz A-Class platform in 2014.
Powertrain sharing. Renault-Nissan will supply Mercedes-Benz with small three-cylinder gasoline engines for the new Smart and Twingo, as well as four-cylinder diesels for a jointly developed light commercial vehicle and the next-generation A-Class. Mercedes-Benz will supply four- and six-cylinder gas and diesel engines for future Nissan and Infiniti models.
Electric cars. Renault-Nissan will supply motors in 2014 for the Twingo ZE and Smart ED, while Mercedes-Benz will provide batteries.
Inside Line says: The partners could expand their current crossholding share of 3.1 percent in each other.
- Nissan Will Build Mercedes Engines in Tennessee
