Daimler and the Renault-Nissan Alliance have expanded their collaboration with the launch of a manufacturing joint venture in Aguascalientes in central Mexico.

The new business entity COMPAS (Cooperation Manufacturing Plant Aguascalientes) is equally owned by Daimler and Nissan. The partners will invest a total of US$1 billion in COMPAS which will oversee the construction and operation of a manufacturing plant for the production of next-generation premium compact vehicles for the brands Mercedes-Benz and Infiniti.

The state-of-the-art plant will be located near the Nissan Aguascalientes A2 plant. It will have an initial annual production capacity of more than 230,000 vehicles and will create about 3,600 direct jobs by 2020, according to the automakers. Depending on the market development and customer demand, there will be the potential to add additional capacity. Production of Infiniti vehicles will begin in 2017; the first Mercedes-Benz vehicles will roll off the line in 2018.

As announced in June 2014, Daimler and Infiniti will also cooperate in the development of the next-generation premium compact vehicles for the brands Mercedes-Benz and Infiniti. The two partners will closely collaborate at every stage of the product creation process. Brand identity will be safeguarded as the Mercedes-Benz and Infiniti vehicles will clearly differ from each other in terms of product design, driving characteristics, and specifications, according to the automakers.