A new automotive plant in Aguascalientes will build both Daimler and Nissan vehicles, according to an announcement by the two companies today.
The 50-50 joint venture between Daimler AG and Nissan Motor Co. represents an investment of US $1.4 billion. The two firms will share planning, development and manufacturing of Mercedes and Nissan compact luxury cars.
The Wall Street Journal says the venture highlights a trend toward greater cooperation in the global automotive industry.
The new plant will be built near an existing Nissan factory and will produce 300,000 cars a year when it reaches full capacity in 2021. It will create 5,700 local jobs when fully operational.
Production is expected to begin in 2017, with Nissan Infiniti models. Mercedes-Benz vehicles will follow a year later.
Daimler has already engaged in a similar sharing of manufacturing and resources through a partnership with Renault, building the Renault Twingo and Mercedes Smart Car with shared design and parts.