Mercedes-Benz and Infiniti plan to share development of compact cars to cut costs, and expand Daimler’s North American production footprint and the Infiniti range, according to a news agency report.
Sources told Reuters an outline deal would see Nissan build the next-generation Mercedes GLA SUV and related models in Mexico alongside new models for its own Infiniti brand.
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Mercedes, Nissan and alliance partner Renault have shared engines, plants and vehicle architectures for small cars and vans since announcing a broad-based partnership in 2010, underpinned by token reciprocal shareholdings, Reuters noted.
Japan’s Nikkei business newspaper reported similar Daimler-Nissan cooperation plans last September.
Reuters’ sources said plans could be presented to the Daimler board for approval as soon as April with the first jointly manufactured vehicles expected in late 2017.
Neither carmaker would confirm the Mexico production plan, the news agency said.
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By GlobalDataThe companies have yet to reach a “joint formal decision”, Infiniti CEO Johan de Nysschen told Reuters at the Geneva show. “But Mexico does have a lot going for it,” he added, including tariff-free exports to the US and Europe.
The sources said the latest agreement would give Infiniti new bottom end SUV, sedan and coupe models built with the same parts and architecture as successors to the Mercedes A- and B- class, GLA and CLA.
In return Daimler would gain a first North American production site for its front-wheel drive MFA architecture, development savings and economies of scale in a vehicle category where it has struggled in the past with low profitability.
The initiative would cut the cost by about a quarter compared with Daimler going it alone, Reuters’ sources said. In a sign of deepening cooperation, the new investments will be split evenly – despite the higher production volumes expected for Mercedes.
“Some people argue that we should [negotiate] with Daimler because they will sell more cars on the platform,” one Renault-Nissan executive was quoted as saying. “But that’s what gets in the way of successful alliances.”
The same sources said building the new models also in China, the automakers’ most important growth market, both would have to establish separate assembly lines with their respective joint venture partners Dongfeng and Beijing Auto.
“It’s a bit more complex in China,” one source told Reuters. “But you still get all the savings from sharing parts and supply networks.”
