Daimler, Nissan May Build New Factory in Mexico

Daimler AG is considering a plan to erect an assembly plant in Mexico with Nissan Motor Co. to produce small luxury vehicles under the Mercedes-Benz and Infiniti brands, Frankfurter Allgemeine Zeitung reports.

No final decision has been made, according to the newspaper, which cites an anonymous Daimler executive.

Daimler, which currently makes only commercial trucks in Mexico, says it won't comment.

The Nikkei reported a year ago that Nissan and Daimler were close to an agreement to jointly open a new factory in Mexico in the first half of 2014 with annual capacity of about 200,000 vehicles. The Tokyo-based newspaper said the facility would make Mercedes and Infiniti cars based on the German company's reengineered B-class platform.

Daimler and the Renault-Nissan alliance already have a powertrain partnership, which they expanded in September to add new engine and transmission projects.

Nissan produces small cars at two Mexican plants and is constructing a third. CEO Carlos Ghosn has said the new factory many build Infiniti models. He declared last month that Nissan would need another North American factory within five years.