Renault Nissan and Daimler Announce Huge Alliance

Daimler Renault Alliance Meeting (Credit: © Daimler)

In a bid to take over the world, the Renault-Nissan Alliance and Daimler (which owns Mercedes-Benz and Smart) have entered into a new agreement. The auto giants are looking to pool their resources for a new production effort in Mexico. It involves constructing a new plant in Aguascalientes, which is located in the north-central portion of the country. Nissan already operates a factory in the area.

How exactly does this new Automotive Axis of Power plan to rule the world? It plans to pump out 300,000 vehicles from the new facility to 2021. It will produce Infiniti and Mercedes-Benz small vehicles, which is a market segment both luxury brands have struggled with. Lest you think your next Mercedes will look a little too… Japanese, the automakers are reassuring everyone there will be no badge engineering going on at the facility. In other words, the Mercedes and Infiniti models will have completely different specs and looks.

The two luxury brands also recently started production of new four-cylinder engines at a facility in Decherd, Tennessee. That factory is expected to be whipping out 250,000 engines each year, as long as it is operating at full capacity. The power plants already have a home in the new Infiniti Q50 and Mercedes-Benz C-Class.

Daimler and Nissan are also working together on a next generation set of Twingo and Smart city cars that share a platform. The two models are small yet still have seating for four occupants, unlike the current Smart Fortwo. Production of the two-seater Fortwo will continue on as well.