Published on September 4th, 2015 | by Daniel Sherman Fernandez0
Daimler and Renault-Nissan to open a joint-venture manufacturing complex in Mexico
With the new generation Q50, it’s pretty clear that Mercedes-Benz and Infiniti have ties. Shared use of their 2.0-litre turbocharged motor has meant that it would be more cost efficient and effective if the two companies were to work together when it comes to production and manufacturing.
Daimler and the Renault-Nissan Alliance today broke ground for their joint-venture manufacturing complex, COMPAS (Cooperation Manufacturing Plant Aguascalientes), in Aguascalientes in central Mexico, which will build next-generation premium compact vehicles for the brands Mercedes-Benz and Infiniti. COMPAS is 50:50 owned by Daimler and Nissan. The partners will invest a total of US$1 billion in the joint venture, which will oversee the construction and operation of the state-of-the-art manufacturing plant.
Located near the Nissan Aguascalientes A2 plant, COMPAS will have an initial annual production capacity of more than 230,000 vehicles and will create about 3,600 direct jobs by 2020. Depending on the market development and customer demand, there will be the potential to add additional capacity. Production of Infiniti vehicles will begin in 2017, while the first Mercedes-Benz vehicles will roll off the line in 2018. In addition to the direct employment it provides, COMPAS is also expected to generate some 12,000 indirect jobs – largely due to a high localization rate which will significantly increase the Mexican supply base.
COMPAS is led by an international management team from Daimler and Nissan: Ryoji Kurosawa, Chief Executive Officer (CEO), Uwe Jarosch, Chief Financial Officer (CFO), and Glaucio Leite, Chief Quality Officer (CQO). As announced in June 2014, Daimler and the Renault-Nissan Alliance will also cooperate in the development of the next-generation premium compact vehicles for the brands Mercedes-Benz and Infiniti. The two partners will closely collaborate at every stage of the product creation process. Brand identity will be safeguarded as the Mercedes-Benz and Infiniti vehicles will clearly differ from each other in terms of product design, driving characteristics, and specifications.
Growing together in Mexico
Mexico is already a key location for Daimler with a total of around 8,000 employees. The group has production plants for trucks and buses in Saltillo, Santiago Tianguistenco, and Garcia, a parts distribution center in San Luis Potosí and a remanufacturing plant, a product delivery center, and a training center for passenger cars located in Toluca.
Nissan has been producing vehicles in Aguascalientes since 1992 and is known for its award-winning, highly efficient workforce. In November 2013, Nissan opened a second manufacturing complex in Aguascalientes, Aguascalientes A2. Nissan also has a plant in Cuernavaca. Together, the three plants have an annual production capacity of 850,000 vehicles. Nissan is the leading automaker in Mexico, accounting for one in four cars sold.