Daimler executive board to approve Mercedes-Benz production in Mexico

Article by Andrew Christian, on June 24, 2014

The executive board of Daimler AG is bound to green-light within two weeks the production of a Mercedes-Benz compact sedan and its CLA coupe-styled four-door compact at Nissan's site in Aguascalientes, Mexico, according to a report by Manager Magazin, citing unnamed executives.

There were earlier reports saying that Daimler would produce the GLA crossover in the Aguascalientes site as part of a joint venture with the Japanese carmaker. Daimler executives, however, told Manager Magazin that the German carmaker intends to produce the next-generation CLA and a new A-class sedan variant at the site.

Nissan and Mercedes are expected to commence joint production in Aguascalientes for export to the United States beginning in 2017, according to analysts at International Strategy & Investment (ISI).

The joint production will entail an Infiniti compact underpinned by Mercedes-Benz’s front-wheel drive platform. ISI said in a note that the joint production will result to a total annual output ranging from 100,000 to 150,000 premium vehicles.

Mexico has been the focus of several German luxury carmakers as it offers several advantages like numerous free trade accords, a cheap yet skilled workforce and proximity to the United States.

German carmaker BMW is close to a decision to build its first assembly site in the country. BMW plans to build 3-series and 1-series cars and possibly Mini models at the site, according to a report by the Handelsblatt in May.

Audi, meanwhile, is currently building its San Jose Chiapa site in Mexico that will have the capacity to produce around 150,000 vehicles annually.

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