Currently reading: Detroit motor show 2012: Nissan to build Mercedes engines
Partners announce plans to build Mercedes engines at Nissan plant in Tennessee

Mercedes four-cylinder engines will be built at a Nissan plant in Tennessee from 2014, it has been confirmed. The engines will be the first Mercedes road car units built in North America.

The deal, which is part of the Daimler and Renault-Nissan partnership agreed in 2010, means that the engines will be built for use on Infiniti and Mercedes cars.

Mercedes boss Dieter Zetsche confirmed that the engines would be used in the C-class, and denied that customers would be put off by buying a car with an engine built in a factory not run by a premium manufacturer.

"The factory meets our production standards and quality targets, so it's a win-win situation," said Zetsche. "Customers are quite used to the concept of different parts coming from different suppliers, so why should this worry them."

The partnership is expected to yield platform sharing between Renault and Smart and Mercedes and Infiniti, as well as lead to a greater swapping of engine and alternative powertrain technology. However, Zetsche was adamant it wouldn't lead to Renault-Nissan and Mercedes merging or taking more stock in each other.

"We share an office, not a bedroom," he said. "We entered the partnership with a couple of specific, pragmatic goals, and now we are finding even more areas that we can work together. In the future there will be more areas to co-operate on, I'm sure, but there is no rush."

Join the debate

Add a comment…
ronmcdonald 9 January 2012

Re: Nissan to build Mercedes engines

TegTypeR wrote:
What made me laugh was how badly I wrote that!
Refreshing to see someone criticize themslefs for spelling mistakes as normally some no-all will butt in too belittle you.

matsoc 9 January 2012

Re: Nissan to build Mercedes engines

The problem is not about customers perception of engines built in a plant run by Nissan, that's for sure.

However I don't consider these kind of deals a good move. Mixing two large companies for just a little deal often brings more unexpected problems than savings. Suppliers are more inclined to accept complaints than a big car maker (in this case Nissan) which acts like a supplier for Mercedes.

newtoybox 9 January 2012

Re: Nissan to build Mercedes engines

Maxycat wrote:

Are BMW 4 cylinder petrol engines made in a Peugeot plant in the UK? All Polo's made in Spain? All BMW 3 series rhd cars made in South Africa? And currently all Jaguar engines are made by Ford?

No. BMW 4 Cylinder engines are made by BMW at Hams Hall, Birmingham & I think supply some to Peugeot.

Polo's come out of SEAT plants

Yes RHD BMW 3 Series are South African with British engines

Jaguar Land Rover Engines are Ford made until the new Jaguar Engine Plant in Wolverhampton is up an running.