Daimler and Renault-Nissan have announced plans to establish a joint venture to build a new plant in Aguascalientes, Mexico.

Daimler and Renault-Nissan have announced plans to establish a joint venture to build a new plant in Aguascalientes, Mexico.

The plant will employee approximately 5,700 people and begin building Infiniti vehicles in 2017. A year later, production will begin on unnamed Mercedes models.

The companies were coy on specifics but previous reports have indicated the plant could build entry-level luxury cars based on the next-generation of the MFA platform. Nothing is official but sources have suggested they could include a new A-Class sedan and the next-generation CLA.

The vehicles will be developed in "close collaboration" but both companies say they will be "clearly differ from each other in terms of product design and specifications."

According to Renault-Nissan CEO Carlos Ghosn, “Joint development of compact premium vehicles and joint production in Aguascalientes together represent one of the largest projects between the Renault-Nissan Alliance and Daimler. It also shows how our collaboration, which began in Europe, has become global in scope.”

HIs sentiments were echoed by Mercedes Chairman Dieter Zetsche who stated “In Aguascalientes, we will take our successful partnership to the next level by combining the skills of our two companies Daimler and Nissan in one production plant. Just over four years after the cooperation was founded, the decision for the new plant in Mexico is a major milestone.”

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