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Nissan Casting Plant Wins Mercedes Block Through Daimler Collaboration |
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Released on January 8, 2012
Nissan’s Decherd, Tenn., manufacturing facility, which maintains metalcasting capability, will begin building a new line of engines in 2014 as part of a growing relationship between the Renault-Nissan Alliance and Daimler.
In the latest step in the collaboration, the Decherd plant will produce Mercedes-Benz 4-cylinder engines for Infiniti and Mercedes-Benz automobiles. Installed capacity is expected to be 250,000 units per year once full ramp-up is achieved.
Nissan’s Decherd powertrain assembly plant manufactures 4-, 6- and 8-cylinder engines for U.S.-produced Nissan and Infiniti vehicles. The plant 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 sq. ft. (111,000 sq. m).
“In the context of our Mercedes-Benz 2020 growth strategy, we have decided we will expand [local] production capacities,” said Dieter Zetsche, chairman of the Daimler board of management and head of Mercedes-Benz Cars. “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.”
The collaboration marks the first production of Mercedes-Benz engines in the North America Free Trade region. According to a press release issued by Nissan, the Decherd plant’s location and supply chain position ensure a direct supply of engines for Mercedes-Benz C-Class automobiles that are assembled in Daimler’s vehicle plant in Tuscaloosa, Ala.
“This is…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 good business development in North America.”
Daimler and the Renault-Nissan Alliance launched their collaboration in April 2010. It includes an equity exchange that gives the Renault-Nissan Alliance a 3.1% stake in Daimler and Daimler a combined 3.1% interest in Renault and Nissan.
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