Daimler AG and Nissan Motor Co. are finalizing their joint plans to build passenger vehicles in Mexico to be sold primarily in the North American market, the Nikkei business daily reported. The proposed assembly factory will have a production capacity of about 200,000 units a year. It is anticipated to start operating in the first half of 2014, the report disclosed.
The total investment in the plant is estimated to be $1 billion, the paper further revealed. In April 2010, Renault and Nissan formed a partnership with Daimler to jointly manufacture engines and vehicles. A spokesperson for Nissan in the United States declined to confirm the report of Nikkei.
David Reuter commented that Nissan is still growing across the world and in order to reach their strategic business goals in the Nissan Power 88 plan, it should continue to study opportunities to install additional capacity in core markets. He further disclosed that Nissan has made no announcements concerning adding manufacturing capacity in Mexico and "has nothing further to add at this time."
Previously, the company stated that it was looking into the opportunities available in Mexico after a state government there declared that the automaker was considering investing $2 billion in a new plant there. Japan's Nissan mentioned in September that it would manufacture its next Infiniti luxury models outside its home market to escape the adverse effects of a strong yen.
In June, the company outlined plans to expand its international market share as well as profit margin to 8 percent within six years. This plan was named the Nissan Power 88. A spokesperson in Germany for Daimler declined to comment, stating only that Nissan and Daimler were studying a number of options for cooperation. [source: Autonews]