Daimler and Renault-Nissan Alliance Break Ground for New Joint-Venture Plant in Mexico

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Sep 03, 2015, 01:01 ET

AGUASCALIENTES, Mexico, Sept. 3, 2015 /PRNewswire/ --

Aguascalientes plant to build next-generation premium compact vehicles for the brands Mercedes-Benz and Infiniti
Production of Infiniti vehicles to begin in 2017
Production of Mercedes-Benz vehicles to begin in 2018

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.

"Today marks an important milestone for the partnership between Daimler and the Renault-Nissan Alliance. This new joint plant will help both partners to serve their respective customers faster and with more flexibility. As Mercedes-Benz' first production location for compact cars in the NAFTA region, it will also significantly enlarge our footprint here," said Markus Schaefer, Member of the Divisional Board of Mercedes-Benz Cars, Production and Supply Chain Management. "On our end, while sharing high efficiency and flexibility in the joint venture, we will add Mercedes-Benz specific technology as well as further training and assistance by our global lead plant for compact cars in Rastatt, Germany. This proven approach will guarantee that our quality here in Aguascalientes will be the same as at the other locations of our global compact car production network in Europe and China."

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.

"This new plant represents yet another example of the growing collaboration between the Renault-Nissan Alliance and Daimler. Mexico is a global benchmark for quality and efficiency and is a major reason why Daimler and Nissan have decided to produce the next generations of premium compact cars for Mercedes-Benz and Infiniti here in Aguascalientes. What we are celebrating today has also been made possible through our close collaboration and partnership with both the state and Federal governments," said Jose Munoz, Executive Vice President, Nissan Motor Co., Ltd. and Chairman, Management Committee – Nissan North America.

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).

Aguascalientes Governor De La Torre said the new plant will be an important source of jobs for the people of Aguascalientes. "This first stone reaffirms Aguascalientes's position as a major manufacturing base for the global auto industry. We will continue to encourage public and private partnerships to strengthen our position as a base for the world's most important industries."

More than 400 guests attended the groundbreaking ceremony, including Ildefonso Guajardo, Mexican Minister of Economy; Carlos Lozano de la Torre, Governor of the state of Aguascalientes; Markus Schaefer, Member of the Divisional Board of Mercedes-Benz Cars, Production and Supply Chain Management; Joerg Prigl, Head of Product Group Compact Cars, Mercedes-Benz Cars; Jose Munoz, Executive Vice President, Nissan Motor Co., Ltd. and Chairman, Management Committee – Nissan North America (NNA); Roland Krueger, President of Infiniti Motor Company, Limited; Ryoji Kurosawa, COMPAS CEO; Uwe Jarosch, COMPAS CFO; Glaucio Leite, COMPAS CQO; and Armando Avila, COMPAS Board of Directors Chairman.

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.

Daimler and the Renault-Nissan Alliance will also produce the next-generation premium compact cars at other production locations around the world, including Europe and China.

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 Potosi 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.

About the global production network of Mercedes-Benz Cars

26 locations around the world involving more than 70,000 employees form the flexible and efficient global production network of Mercedes-Benz Cars. The network is based on the product architectures of front-wheel drive (compact cars) and rear-wheel drive (for example the S-Class, E-Class, and C-Class) as well as the SUV and sports car architectures. In addition, there is a powertrain production network (engines, transmissions, axles and components). Each of these production networks is grouped around a lead plant that serves as a center of competence for the ramp-up of new products, technology and quality assurance.

About the Renault-Nissan Alliance Manufacturing Network

The Renault-Nissan Alliance operates 81 manufacturing facilities, including 42 vehicle and 39 powertrain plants, in 27 countries.

The Alliance also has production agreements with local industrial partners in 13 countries, including AVTOVAZ in Russia and Dongfeng Motor in China. In total, 106 plants in the world produce cars and engines for the eight Alliance brands. In 2014, the Alliance produced more than 8 million vehicles, an average of one vehicle every four seconds.

Photos from the groundbreaking event in Aguascalientes will be available on the Daimler Media Site by around 08:30 p.m. CEST: www.media.daimler.com

Further information from Daimler is available at:
www.media.daimler.com and www.daimler.com

DAIMLER AT A GLANCE
Daimler AG is one of the world's most successful automotive companies. With its divisions Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services, the Daimler Group is one of the biggest producers of premium cars and the world's biggest manufacturer of commercial vehicles with a global reach. Daimler Financial Services provides financing, leasing, fleet management, insurance, financial investments, credit cards, and innovative mobility services.

The company's founders, Gottlieb Daimler and Carl Benz, made history with the invention of the automobile in the year 1886. As a pioneer of automotive engineering, Daimler continues to shape the future of mobility today:

The Group's focus is on innovative and green technologies as well as on safe and superior automobiles that appeal to and fascinate. Daimler consequently invests in the development of alternative drive trains with the long-term goal of emission-free driving: from hybrid vehicles to electric vehicles powered by battery or fuel cell. Furthermore, the company follows a consistent path towards accident-free driving and intelligent connectivity all the way to autonomous driving. This is just one example of how Daimler willingly accepts the challenge of meeting its responsibility towards society and the environment.

Daimler sells its vehicles and services in nearly all the countries of the world and has production facilities in Europe, North and South America, Asia, and Africa.

Its current brand portfolio includes, in addition to the world's most valuable premium automotive brand, Mercedes-Benz, as well as Mercedes-AMG and Mercedes-Maybach, the brands smart, Freightliner, Western Star, BharatBenz, FUSO, Setra and Thomas Built Buses, and Daimler Financial Services' brands: Mercedes-Benz Bank, Mercedes-Benz Financial, Daimler Truck Financial, moovel and car2go. The company is listed on the stock exchanges of Frankfurt and Stuttgart (stock exchange symbol DAI). In 2014, the Group sold more than 2.5 million vehicles and employed a workforce of 279,972 people; revenue totaled €129.9 billion and EBIT amounted to €10.8 billion.

ABOUT THE RENAULT-NISSAN ALLIANCE
The Renault-Nissan Alliance is a strategic partnership between Paris-based Renault and Yokohama, Japan-based Nissan, which together sell one in 10 cars worldwide. The companies, which have been strategic partners since 1999, sold 8.5 million vehicles in nearly 200 countries in 2014. In addition to AVTOVAZ, the Alliance operates strategic collaborations with automakers including Germany's Daimler, Japan's Mitsubishi, China's Dongfeng, and India's Ashok Leyland.

www.media.blog.alliance-renault-nissan.com
www.media.renault.com
www.nissan-newsroom.com

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SOURCE Daimler Corporate Communications