Infiniti Mulls Small-Car Production in Mexico

Nissan Motor Co.'s Infiniti brand is eyeing the possibility of building a new small car model in Mexico for global markets, Automotive News reports.

Infiniti President Johan de Nysschen tells the newspaper that Mexico has some advantages over the U.S. for export production. The European Union levies tariffs on vehicles made in America but not on those built in Mexico. Major South American units have free-trade agreements with the country.

De Nysschen did not specify what model Infiniti might produce in Mexico. But AN notes that the brand has said it will add a new small car to its global lineup. Nissan has said it intends to make a Daimler-designed four-cylinder engine at its plant in Decherd, Tenn., for the new Infiniti model.

It's unclear whether Infiniti would use a Nissan factory or erect its own facility. The parent company plans to open a $2 billion assembly plant near its existing car factory in Aguascalientes, Mexico, by the end of 2013. Nissan has not identified the models to be produced there.

All Infiniti models currently are built in Japan except the new JX crossover vehicle that went into production earlier this year at Nissan's Smyrna, Tenn., plant.