Nissan, Daimler to Collaborate in Mexico for production of premium compact vehicles

by Industry Week | Business

AGUASCALIENTES, Mexico—Five years after announcing their strategic collaboration, Daimler and the Renault-Nissan Alliance are expanding its scope with the start of a manufacturing joint venture in Aguascalientes in central Mexico, according to a new report by Industry Week.

Nissan: (Credit via IW)

The new business entity, COMPAS (Cooperation Manufacturing Plant Aguascalientes). is 50:50 owned by Daimler and Nissan, the companies announced last week in a statement.

The companies will invest $1 billion (£640 million) in COMPAS, which will oversee the construction and operation of a manufacturing plant to produce next-generation premium compact vehicles for the brands Mercedes-Benz and Infiniti.

Through the joint venture, Daimler and Nissan will also produce the next-generation premium compact cars at other locations, including Europe and China.

"Located near the Nissan Aguascalientes A2 plant, the plant will have an initial annual production capacity of more than 230,000 vehicles and create about 3,600 direct jobs by 2020. Depending on market development and customer demand, there will be the potential to add capacity. Production of Infiniti vehicles will begin in 2017, and the first Mercedes-Benz vehicles will roll off the line in 2018." Industry Week said.