- Mercedes-Benz and the Renault-Nissan Alliance are expanding their collaboration.
- The partners will jointly build 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.

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danwilson1 says:
07:29 AM, 01/10/2012
@ suxoid
Exactly my point. Infiniti basically uses two engines (three if you involve the G25) for their entire lineup and here we have this guy claiming they make better engines than Mercedes. The VQ needs to be redesigned and replaced. It's smoothness isn't what it used to be.
The new Mercedes V6 is a gem by all accounts and their V8s have always been impressive. Both companies make great engines and arguing about which engines are better are pointless. It's like arguing which interiors are better - it's all subjective and hevily depends on personal bias.
suxoid says:
05:03 PM, 01/09/2012
@danwilson 1
LOL that is the entire Infiniti lineup as the FX and EX use the same VQ
danwilson1 says:
03:39 PM, 01/09/2012
"I suppose Daimler would NEVER admit Nissan/Infiniti makes better engines, but it would not surprise me if Infiniti lost some customers over time due to this."
The only good Nissan/Infiniti engines I can think off are the V6 and V8 in their G/M/QX. That's it.
Mercedes offers more engines and they're also very good.
Who cares about Wards anyway? They're one source - there are countless others out there.
carsgalore says:
11:34 AM, 01/09/2012
interesting to say the least....
1919diesel says:
08:23 AM, 01/09/2012
When this venture was announced I found it curious that Infiniti, who has had engines on the Wards 10 Best list (and Nissan as well) would want to source their powerplants from Mercedes. Seems like they are giving away a critical piece which is one of their defining advantages. I understand the platform sharing on the low end, and I suppose Daimler would NEVER admit Nissan/Infiniti makes better engines, but it would not surprise me if Infiniti lost some customers over time due to this. But I also understand the cost efficiencies of scale - Infiniti has too low volumes to invest in engines - with this deal they can work on fine-tuning the Mercedes engine to their tastes and focus more on the design and handling where they are strong. At least Ghosn was "SMART" enough NOT to let Daimler "unload" the entire Smart car brand/operations onto Renault-Nissan. Let them keep that dog and pay RN to develop platforms & powertrains. Sounds like a win!
rctennis3811 says:
07:42 AM, 01/09/2012
As a G owner, I would like Infiniti to continue using Nissan's own VQ engines. There's something far more exhilarating about the VQ engines compared to the Mercedes-Benz 3.5L V6 that keeps me from jumping on board with this engine sharing deal. Now if only Nissan would add direct injection to the VQ in the United States...
a1c_scg says:
07:39 AM, 01/09/2012
Meh, I wanna see an AMG 6.2 in a 370Z. That's a Mercedes-Nissan joint venture I could get behind.