Daimler Mulls Making Cars with Nissan in Mexico

Daimler AG's Mercedes-Benz Cars unit is considering joint vehicle production with Nissan Motor Co. in Mexico, according to El Financiero.

Pedro Tabera, head of Mercedes' Mexico unit, tells the Mexico City-based newspaper that the company is considering "various alternatives" for cooperation with Nissan, including co-production.

Frankfurter Allgemeine Zeitung, citing an anonymous Daimler executive, reported in December that the company was mulling a plan to erect an assembly plant in Mexico with Nissan.

The Renault-Nissan alliance formed a partnership with Daimler three years ago to share development and production of cars, engines and drivetrains. Mercedes is working with Nissan's Infiniti unit on a premium compact sedan expected in 2015.

In Mexico, Nissan produces small cars and vans at two plants and is constructing a third. CEO Carlos Ghosn said last November that Nissan would need another North American factory within five years, possibly to build Infiniti vehicles. Daimler currently makes only commercial trucks in Mexico.