Canadian Manufacturing

Daimler, Renault-Nissan to build US$1.4B Mexico compact car plant

Plant in northern state of Aguascalientes will build as many as 300,000 Infiniti, Mercedes-Benz vehicles



MEXICO CITY _ Automakers Daimler AG and Renault S.A. and Nissan Motor Corp. say they will build a US$1.36-billion plant to manufacture Infiniti and Mercedes-Benz brand compact vehicles.

The companies announced late last week that construction on the plant will begin in 2015 in the northern state of Aguascalientes.

The French and Japanese automakers announced their role in the facility as part of their Renault-Nissan Alliance partnership.

The trio called it the most ambitious project to date for the joint venture the firms launched in 2010.

They said it would produce as many as 300,000 cars a year, with Infiniti production beginning in 2017 and Mercedes in 2018.

The plant is expected to employ 5,700 people

Automakers are increasingly moving car manufacturing to Mexico because of its access to the United States, low labour costs and free-trade deals with more than 30 countries.

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