Loose Partnership Between Renault-Nissan and Daimler Intensifies

Bertel Schmitt
by Bertel Schmitt

It’s not that the cross-sharing of technologies between Renault-Nissan has been a well-kept secret. However, it is good to hear that loose alliances between unlikely partners work, while a marriages made in the automotive compatibility heaven (we are looking at you, Volkswagen & Suzuki) don’t even get to the consummation part.

Renault-Nissan announced today in Detroit that its Decherd, Tenn., plant will build Mercedes-Benz 4-cylinder engines for Infiniti and Mercedes-Benz starting in 2014.

Read this sentence carefully.

Nissan will build engines designed by Mercedes Benz. The engines will be used in Infiniti cars. And they will be used by Mercedes-Benz. It is the first time that Merc. engines will be built in the NAFTA. That first happens in a Nissan plant. That’s more than a marriage, that’s an orgy between two. Well, three.

Production will begin in 2014, with installed capacity of 250,000 units per year once full ramp–up is achieved.

Mercedes will be using the engines starting in 2014 in C-Class cars, built at Daimler’s vehicle plant in Tuscaloosa, Ala.

The complete project announced last September amazingly is still on track:

  • Joint smart/Twingo architecture still underpins cars launched by Renault and Daimler in the first quarter of 2014. Two-seater smart vehicles will be produced at Daimler’s plant in Hambach, France, and four-seater smart and Renault production are slated for Renault’s plant in Novo Mesto, Slovenia.
  • A new entry-level city van for Mercedes-Benz is on schedule with launch planned late 2012. The Mercedes van will be made at Renault’s plant in Maubeuge, France.
  • The cross-supply of power trains intensifies. The Alliance is supplying Daimler with compact three-cylinder gasoline engines to be used in smart and Twingo vehicles and four-cylinder diesel engines to be used in the jointly developed light commercial vehicle and in Mercedes-Benz’s compact cars. Daimler will supply Nissan and Infiniti with four- and six-cylinder gasoline and diesel engines and automatic transmissions.
  • Infiniti plans to base a premium compact vehicle on the Mercedes compact-car architecture, starting in 2014.
  • Daimler will provide batteries from its production facility in Kamenz, Germany, and Renault-Nissan will provide electric motors for the use in the jointly developed EV versions of the smart and Twingo. Those are expected in 2014.


Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Acuraandy Acuraandy on Jan 08, 2012

    Talk about 'full circle', who'da thunk it? By lineage, who would've thought that Infiniti and Benz would've been related to an AMC Eagle? (in Daimler's case, in a roundabout way, twice) Timeline: 1983 - Renault purchases controlling interest in American Motors. 1987 - Renault sells AMC/Jeep to Chrysler. 1998 - Chrysler (along with all AMC model copyrights) merges with Daimler Benz. 1999 - Nissan (in financial challenges of its own) enters an alliance with Renault S.A. 2009 - DaimlerChrysler collapses, forcing a US taxpayer bailout (AGAIN, see malaise-era bailout of 1979) Fiat and UAW assume ownership. and now, 2012 - Renault/Nissan and Daimler AG partner up, in line with Mr. Ghosn's disgust with an 'unnaturally strong' Yen. Bonus: Herr Zetsche's 300C ad circa 2006: http://www.youtube.com/watch?v=_tVglVG3SFc

    • See 2 previous
    • Catnett Catnett on Jan 09, 2012

      Am I the only person on the planet who actually enjoyed the "Dr. Z" ads?

  • Dejal1 Dejal1 on Jan 08, 2012

    Moments after the photo + handshake was taken Ghosn was heard to say, "What happened to my watch?". Somewhere in Germany a pawn shop has a Rolex President on display.

  • Ltcmgm78 It depends on whether or not the union is a help or a hindrance to the manufacturer and workers. A union isn't needed if the manufacturer takes care of its workers.
  • Honda1 Unions were needed back in the early days, not needed know. There are plenty of rules and regulations and government agencies that keep companies in line. It's just a money grad and nothing more. Fain is a punk!
  • 1995 SC If the necessary number of employees vote to unionize then yes, they should be unionized. That's how it works.
  • Sobhuza Trooper That Dave Thomas fella sounds like the kind of twit who is oh-so-quick to tell us how easy and fun the bus is for any and all of your personal transportation needs. The time to get to and from the bus stop is never a concern. The time waiting for the bus is never a concern. The time waiting for a connection (if there is one) is never a concern. The weather is never a concern. Whatever you might be carrying or intend to purchase is never a concern. Nope, Boo Cars! Yeah Buses! Buses rule!Needless to say, these twits don't actual take the damn bus.
  • MaintenanceCosts Nobody here seems to acknowledge that there are multiple use cases for cars.Some people spend all their time driving all over the country and need every mile and minute of time savings. ICE cars are better for them right now.Some people only drive locally and fly when they travel. For them, there's probably a range number that works, and they don't really need more. For the uses for which we use our EV, that would be around 150 miles. The other thing about a low range requirement is it can make 120V charging viable. If you don't drive more than an average of about 40 miles/day, you can probably get enough electrons through a wall outlet. We spent over two years charging our Bolt only through 120V, while our house was getting rebuilt, and never had an issue.Those are extremes. There are all sorts of use cases in between, which probably represent the majority of drivers. For some users, what's needed is more range. But I think for most users, what's needed is better charging. Retrofit apartment garages like Tim's with 240V outlets at every spot. Install more L3 chargers in supermarket parking lots and alongside gas stations. Make chargers that work like Tesla Superchargers as ubiquitous as gas stations, and EV charging will not be an issue for most users.
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