Renault-Nissan Alliance and Daimler AG announce wide-ranging strategic cooperation

[Wolfgang]

AUTOSHOW-UPDATE 3-Nissan to build Infiniti outside Japan


* Decision comes due to strong yen - Nissan CEO

* Infiniti compact to be built in Europe, maybe also in China -sources

* Mercedes to offer architecture, diesel engines

* "Organic" as alternative to "mechanic" German brands (Adds Infiniti's European sales chief)


By Christiaan Hetzner and Helen Massy-Beresford

FRANKFURT, Sept 14 (Reuters) - Japanese automaker Nissan Motor Co will build its next Infiniti models including a new premium compact car outside its home market to escape the burden of a strong yen, Chief Executive Carlos Ghosn said on Wednesday.

The strength of the yen, which at 77 to the dollar is close to a record high, makes Infiniti cars built in Japan less price competitive with rival luxury brands, said Ghosn, who also is CEO of Renault .

"The next generation Infiniti cars will be built outside Japan," Ghosn said during a joint press briefing with partner Daimler (DAIGn.DE) to update the market on an alliance forged in April 2010.

Japanese auto executives have repeatedly warned that the yen had strengthened beyond what domestic exporters could cope with, with Honda stating last month it was considering further production bases overseas.

Nissan wants to roll out its Infiniti brand worldwide to grab a greater share of the premium market, which offers greater growth and higher profits than found in the volume segment that is home to Nissan.

Similarly ambitious plans have come to a screeching halt for General Motors' Cadillac and Toyota's Lexus after their models flopped in Europe, mainly due to strong competition from German brands like BMW and Audi (VOWG_p.DE) as well as a lack of competitive diesels.

Infiniti's European sales chief Guillaume Pelletreau told Reuters in an interview that the Japanese luxury brand probably couldn't launch an assault on the European market without the help of alliance partner Daimler (DAIGn.DE), which will supply a vehicle architecture and diesel engines to the brand.

To entice the discriminating German and British customers needed to sell 100,000 cars in western Europe by 2016, Infiniti wants to offer a completely different experience from the mainstream luxury brands like Mercedes-Benz and BMW.

"Our cars are all about curves and sensuality, creating something 'organic' as an answer to the 'mechanic' approach of the legacy (German) brands," Pelletreau said.


EUROPEAN PRODUCTION

Infiniti believes sponsoring Formula One Champions Red Bull Racing and its pilot Sebastian Vettel will help generate broad awareness for the brand in Europe where it started only three years ago.

"I don't think there will be any other sponsorships, since the best way to create familiarity is not to get diluted with too many different messages," the European sales chief added.

"A lot of brands are getting lost since they have no real story, they have no real consistency," he continued, saying that as a result all dealerships would sell Infinitis only and not have a Nissan showroom attached.

Sources told Reuters earlier that Nissan would announce plans to build a premium compact car in Europe off a Mercedes-Benz architecture in the next couple of years, making it the first Asian luxury brand to manufacture there.

Nissan declined to say where it would be built, but indicated a Chinese site would be needed in addition to a European one to meet demand by customers in those two regions who are looking for an alternative to the BMW 1 Series or Audi A3.

"Why are you assuming it's one plant? The volume of the C-segment in the luxury space is the biggest TIV (total industry volume)," Executive Vice President Andy Palmer told Reuters.

So far, Renault and Daimler are cooperating to explore electric versions of the Mercedes Smart car and the Renault Twingo, as well as a small delivery van based on Renault architecture.

The automotive industry is littered with failed partnerships, including an alliance between Japan's Suzuki and German carmaker Volkswagen, which hit the skids this week.

Suzuki is seeking a divorce from its German partner, ending a two-year partnership that failed to deliver meaningful projects.

(Reporting by Paul Ingrassia, Christiaan Hetzner and Helen Massy Beresford; Writing by Maria Sheahan and Ludwig Burger; Editing by Will Waterman and Mike Nesbit)

AUTOSHOW-UPDATE 3-Nissan to build Infiniti outside Japan | Reuters

 

[K-A]

I don't mind when it comes to platforms, engines and transmissions. These are expensive items and the greater economies of scale would justify even more R&D into these areas, meaning better outcomes.

Eni noted in another thread that the BMW 7er platform was compromised in terms of weight saving technology because of cost. If MB can avoid this on a model like an E or S by selling the platform to Infiniti, who's worried?

The other aspects of the vehicles will undoubtedly be entirely different. They'll be no confusing Infinitis and MB's, that's for sure.

Yeah, I get it, and agree that on a business level, it's probably smart, as most people wouldn't even know anyway.

However, M-B build an invisible "premium" into their cars, things that don't show up on paper (on paper, you can compare cars that cost less than half of M-B's to M-B models in terms of stats, etc.). If I pay $60K (U.S) for an E-Class, and I know that an Infiniti G Series is driving on my exact same car, then it would probably prevent me from buying an E-Class. Some things I feel should be kept sacred. Hopefully it won't come to that, but we'll see.

M-B is just starting out on platform sharing throughout their own line, which is controversial in itself, but that doesn't bother me really (in a perfect world, things would be as they were, with exclusive platforms to each model, but this I can adapt with), so hopefully that will help their profit margins significantly enough for them to not have to share their higher end model platforms with others.

 

[Top Secret]

However, M-B build an invisible "premium" into their cars, things that don't show up on paper (on paper, you can compare cars that cost less than half of M-B's to M-B models in terms of stats, etc.).

I think we're all very aware of the badge premium all luxury car makers place on their vehicles.

 

[K-A]

Indeed. Which is all the more reason for me to be hesitant if my badge-premium car is riding on the same chassis as the Nissan/Infiniti next to me (making the premium much more badge-oriented than ever).

 

[Mr. Mercedes]

Infiniti will remove itself moreso from Nissan and capitalise on the MB parts.

 

[Wolfgang]

they may have found another project?

Daimler, Renault mull premium-car alliance

FRANKFURT -- Daimler CEO Dieter Zetsche has told Renault executives he would consider developing premium vehicles together, a top manager at Renault was quoted as saying in a German newspaper on Wednesday.

"Dieter Zetsche spoke to our leadership," Jerome Stoll, executive vice president sales and marketing at Renault, told the Boersen-Zeitung in an interview. "Everything is possible, so long as it makes sense commercially for both partners. Mr. Zetsche said the premium segment is not taboo."

Stoll also said Renault was in the process of developing new premium products, in particular the new Espace large minivan, which will be on the market in 2014.

In April 2010, Daimler, Renault and the French automaker's alliance partner, Nissan Motor Co., signed a deal to cooperate on the development of small cars, commercial vehicles and future powertrains.

Automotive News

 

[Mr. Mercedes]

Selling Nissan and Renault parts, especially at the lower end, I'm all for. Co-developing with them...no thanks!

 

[K-A]

I knew it! I knew M-B would find the $$$$ factor enough to sacrifice their premium cars and build them with/for Nissans, the pessimist in me just knew that it made sense.

It would definitely be the final straw for me. I can't fathom buying a Nissan/Mercedes co-developed car.

 

[mini_cooper4]

Step back with quality again, Mercedes ?
We don't have M as Motorsport anymore and now that...
New Century, new decade... commercializing is expected to hit even higher levels... we are 7 billions now!

 

[Wolfgang]

an update

Nissan-Renault & Daimler partnership going strong

With Suzuki and Volkswagen suing each other over a failed alliance, all eyes are on the Nissan-Renault and Daimler partnership, which represents yet another affiliation between a Japanese and German brand.

Speaking to the automotive media today, Nissan’s Executive Vice President, Andy Palmer, said the two companies made “a conscious decision not to talk about it (the collaboration) until it was real”. Without mentioning the Suzuki Volkswagen ordeal specifically, he added that some manufacturers form alliances “promising the earth, but delivering nothing, so everything we talk about with Daimler has to be real”.

So far the relationship has spawned Renault-built light commercial vehicles, which are badged as Daimlers and seen continued collaborative research on fuel cell technology.

Nissan’s luxury brand, Infiniti, will also benefit from the alliance; taking three engines (V6 diesel, four-cylinder diesel and petrol) from Daimler (which owns Mercedes-Benz, Smart, Mitsubishi Fuso, Freighliner and others) to give it a better chance in the diesel dominated European market.

The deal between Daimler and Nissan-Renault also adds an interesting twist for both sides, as neither is at a disadvantage in regards to future powertrain technologies.

“Beauty of Nissan having an alliance with Renault and collaboration with Daimler, means we have access to all (petrol, hybrid, electric and diesel) technologies” Mr Palmer said.

He was adamant that whilst diesel is a dominant force in some markets today, it may not remain as such for the long term future “as you reduce co2 emissions further, doing it on a diesel engine becomes more expensive (than hybrid)”.

Nissan-Renault CEO, Carlos Ghosn, also agreed that the Daimler collaboration had been a “very fruitful relationship”. He said there are “so many domains where we are working together, signing contracts and delivering product. Everybody is working for his own company, but people can see what you can get for your own company by working with somebody else, so far Daimler has been a great story”.

Even though the Nissan-Renault Daimler collaboration has only been active for about two years, products, engine and technology sharing has already taken place. A far cry from the fruitless and bitter outcome which resulted from the Volkswagen and Suzuki deal.

Nissan-Renault & Damiler partnership going strong | Car Advice | Reviews

 

[Wolfgang]

Daimler and Nissan To Join Forces in Mexico

The German and Japanese automakers intend to jointly build a new $1-billion factory in Mexico.
The plant would produce up to 200,000 cars a year, at an undisclosed location.
Nissan previously announced its plan to invest $328 million in the country.

MEXICO CITY — Daimler and Nissan plan to build a joint plant in Mexico to produce vehicles, according to the Japanese newspaper Nikkei. The plant would build up to 200,000 cars a year at an undisclosed location, beginning in mid-2014, with much of the output to be shipped to the U.S. market.

According to the Japanese daily, the plant would be built by Nissan, with Daimler providing some capital. At the beginning, the plant would manufacture Nissan-badged cars, but eventually it could evolve to produce cars for the luxury segment. Under this scenario, the plant could be destined to serve Infiniti and Mercedes-Benz.

Nissan´s current plants in Cuernavaca and Aguascalientes operate near full capacity, with an expected combined output for 2011 of 600,000 vehicles. Its Mexican-built cars are exported to at least 60 countries, benefiting from the multiple free-trade agreements signed by Mexico.

Daimler, on the other hand, has a couple of facilities in the north and central regions of the country, where it produces trucks. Daimler could take advantage of its partnership to introduce cars.

In April last year, Renault-Nissan signed an alliance agreement with Daimler to collaborate in the development of future products. Each company had committed to purchase about 3 percent of the counterpart´s equity to have a greater vested interest in the mutual success.

Back then, the partners had expressed the intention to develop a combined platform, which could support the Renault Twingo, as well as the two- and four-seat versions of the Smart cars. The alliance was also destined to share powertrains for other platforms, which could involve some future Mercedes-Benz and Infiniti programs. They also planned to produce a van together and reportedly have talked about developing and producing electric vehicles.

Inside Line says: The alliance between Renault-Nissan and Daimler perhaps will begin to bear fruit in Mexico.

Daimler and Nissan To Join Forces in Mexico

 

[K-A]

Ugh. Bad new for the M-B enthusiast. This could be Chrysler all over again.

 

[Mr. Mercedes]

This is NOTHING like the Chrysler Marriage.

 

[K-A]

I'm just gag-reflexing at the inevitable of Mercedes and Nissan/Infiniti sharing and pairing cars in the upper Segments. It'll bring down the perceived value of Mercedes-Benz (I can hear the "it's just an overpriced Nissan" jabs now, which is something I annoyingly dealt with when I had my W211 with "Chrysler" substituted for Nissan, not that I care about what people say.... But it's a problem if I start to think that myself).

 

[Wolfgang]

My guess would be A/B coproduction in Mexico, not the upper segment like your Sindelfingen built E-Class.

Infiniti will build new compact car on Mercedes platform

FRANKFURT -- Nissan Motor Co.'s Infiniti brand plans to build a compact car based on a small-car platform from Daimler AG's Mercedes-Benz, Nissan CEO Carlos Ghosn said.

The new model will mark an expansion of the cooperation between Daimler and the Renault-Nissan alliance, Ghosn said at the Frankfurt auto show on Wednesday. Nissan did not comment on reports that the car would be built in Europe where it will challenge the Audi A3 and BMW 1 series.

Nissan executive vice president Andy Palmer told Automotive News Europe that it is "not a sacred cow" that Infiniti cars should only be built in Japan, but would not comment on where the car will be built.

Read more: Infiniti will build new compact car on Mercedes platform

Nissan’s Executive Vice President Andy Palmer explains it:

“There are very few mass brands that make that walk into luxury. And there’s a reason for that, which is embedded somewhere within the way the products are executed and in the engineering. A luxury brand will need much better torsional rigidity, much better NVH than you would put into a mass brand. If you have a product that handles like an A-class or a B-class, with that level of NVH, with that level of torsional rigidity, but you can do it at a cost, which is closer to where a mass brand would be, then you’re in a very good place from a competitive point of view. And that’s where we’re trying to be.”

 

[K-A]

Good. They can do whatever they want with the subcompacts.

 

[Wolfgang]

an update

Nissan and Daimler to Produce Engines Together in North America

DETROIT, January 8, 2012 /PRNewswire/ --

In the latest step forward in the collaboration of the Renault-Nissan Alliance and Daimler, Nissan's Decherd, Tenn., plant will build Mercedes-Benz 4-cylinder engines for Infiniti and Mercedes-Benz starting in 2014.

Nissan and Daimler will produce Mercedes-Benz 4-cylinder gasoline engines together at Nissan's powertrain assembly plant in Decherd, Tenn. Production will begin in 2014, with installed capacity of 250,000 units per year once full ramp-up is achieved. The Decherd facility will produce engines for Mercedes-Benz and Infiniti models.

"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. "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."

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.

"In the context of our Mercedes-Benz 2020 growth strategy, we have decided that we will expand the production capacities required for this close to the customers. Through the strategic extension of our cooperation with Renault-Nissan we can realize near-market engine production in the NAFTA region on attractive economic terms and make optimum use of synergies arising from the cooperation," Dr. Dieter Zetsche, Chairman of the Daimler Board of Management and Head of Mercedes-Benz Cars, said. "Thus we are systematically broadening our manufacturing footprint in this important growth market."

Nissan began powertrain assembly in Decherd in 1997. Today it manufactures 4-, 6- and 8-cylinder engines for the complete lineup of U.S.-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 meters).

For the full press release, go to: Nissan Online Newsroom, Daimler Global Media Site > Newsroom (Home) or blog.alliance-renault-nissan.com

Decherd plant b-roll is available on: nissannews.com/pressrelease/1025/175/video-gallery

SOURCE Renault-Nissan Alliance

 

[FenlynewDon]

Renault Nissan Alliance and Daimler AG announce wide ranging strategic cooperation

I consider, that you are not right. Let's discuss it. Write to me in PM, we will talk.

 

[Giannis]

Why not discuss it in public, so that all members can benefit from your debate and read and evaluate all the arguments that will be presented?

 

[Wolfgang]

an update

Mercedes-Benz and Infiniti May Build Compact Cars Together in Europe

The collaboration between the Daimler and the Renault-Nissan groups that began in spring of 2010 seems to be working better than expected, as the two automotive companies are now reportedly getting ready to add new projects to their partnership.

According to a news report from German business daily Financial Times Deutschland (FTD), Daimler is mulling building compact Mercedes-Benz passenger cars with partner Renault-Nissan from 2016 in Eastern Europe to further reduce development costs and increase production volumes.

Mercedes-Benz has already introduced the B-Class small MPV and the A-Class compact five-door hatchback, and plans to expand its offerings in the segment with at least three more cars including the CLA in four-door coupe and Shooting Brake variants and an SUV.

Autonews reported that the German brand aims to sell around 500,000 compact cars by 2015, up from 178,000 in 2011.

The Financial Times Deutschland report said that Mercedes would build the SUV alongside vehicles from Nissan's premium brand Infiniti.

"Nissan is a good, respectable partner," Metzler Bank analyst Juergen Pieper Pieper told Autonews adding that the move would not harm Mercedes-Benz's reputation. "A jointly-built SUV makes good sense. Such customers aren't as sensitive as S-class buyers," he said.

The German news daily added that another vehicle being readied by Inifniti is the production version of the Etherea concept based on the Mercedes A-Class model.

According to FTD, further details on the two automotive groups' plans are expected to be announced during the Paris Motor Show in September.

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