Nissan to Build Mercedes-Benz Engines for Mercedes and Infiniti Brands
DETROIT - Production will begin in 2014, with an installed capacity slated for 250,000 units per year once production fully ramps up.
DETROIT – Nissan’s Decherd, Tenn., plant will build Mercedes-Benz four-cylinder engines for Infiniti and Mercedes-Benz starting in 2014. Nissan announced this new stage in the collaboration between Renault-Nissan and Daimler at the North American International Auto Show in Detroit. Production will begin in 2014, with an installed capacity slated for 250,000 units per year once production fully ramps up.
“This is the newest milestone in our pragmatic collaboration and our most significant project outside of Europe so far,” said Renault-Nissan CEO Carlos Ghosn. “Localized capacity reduces exposure to foreign exchange rates while rapidly enabling a good business development in North America – a win-win for the Alliance and Daimler.”
Nissan said this collaboration marks the first production of Mercedes-Benz engines in the North American free trade region. The automaker said the Tennessee plant’s strategic location and logistics links will ensure a direct supply of engines, starting in 2014, for the Mercedes-Benz C-Class, which is built at Daimler’s vehicle plant in Tuscaloosa, Ala.
Mercedes’ chairman of Daimler’s board, and head of Mercedes-Benz Cars, Dieter Zetsche, commented on how this development will impact that company’s strategy.
“In the context of our Mercedes-Benz 2020 growth strategy, we have decided that we will expand the production capacities required for this close to the customers. Through the strategic extension of our cooperation with Renault-Nissan we can realize near-market engine production in the NAFTA region on attractive economic terms and make optimum use of synergies arising from the cooperation,” Zetsche said. “Thus we are systematically broadening our manufacturing footprint in this important growth market.”
Nissan stated it began powertrain assembly in Decherd in 1997. Today, the company manufactures four-, six- and eight-cylinder engines for its lineup of U.S.-produced Nissan and Infiniti vehicles. The plant also houses crankshaft forging and cylinder block casting operations.
More Operations

Fleet Has a Talent Pipeline Problem. What Comes Next? | AF News Recap
Where will fleet’s next generation of leaders come from? This week, we’re looking at the industry’s talent pipeline, what certification can add to a fleet career, how to build an award-worthy track record, and the return of Automotive Fleet’s Personal Use Survey.
Read More →
Smith System Launches Driver Risk Management Program
Fleets have more driver data than ever, but identifying risky behavior doesn't necessarily correct it. Smith System's new Driver Risk Management program combines monitoring, training, and follow-up coaching to help fleets connect risk signals with driver intervention.
Read More →
Automotive Fleet Opens 2026 Personal Use Survey for Commercial Fleet Managers
Less than two weeks left! Commercial and corporate fleet managers are invited to share how their organizations handle company vehicle personal-use policies, charges, and driver eligibility.
Read More →
From AI Prompts to AI-Generated Safety Songs | AF News Recap
Can better prompts make AI more useful for fleet managers? This week, we’re breaking down smarter fleet analysis, an AI-assisted experiment that turned safety training into music, and what happened to fuel prices in August.
Read More →
How to Write Better AI Prompts for Fleet Analysis
Include these six elements in your fleet prompts to generate more relevant analysis and accurate answers.
Read More →
Fleet Meets: Eric Kilgore
This edition of the Fleet Meets series features one of the industry's best leaders driving multi-market and national operations.
Read More →
Why Reactive Fleet Management Is Becoming Too Expensive to Sustain
Research highlights a growing need for proactive management strategies to address rising costs in fleet operations effectively.
Read More →
What Your Fleet KPIs Aren’t Telling You
Tracking fleet metrics is only useful when the data leads to better decisions. This guide helps fleet leaders assess cost, utilization, and downtime more accurately, identify performance gaps, and prioritize the actions that can improve operational results.
Read More →
Hidden in Plain Sight: Fleet Compliance Risks
Fleet compliance isn't just about having policies — it's about consistently enforcing them. This practical guide reveals six hidden compliance risks common in public sector and shared fleet operations and outlines proven strategies to improve visibility, accountability, and audit readiness
Read More →
Turning Fleet Payment Data into Executive Insights
Does data alone drive results in operations?
Read More →