The Renault-Nissan Alliance and Daimler collaboration has broken ground on a new engine manufacturing facility in Decherd, Tennesse, US.
According to the company, the new facility, located at the Nissan's existing powertrain assembly complex, will produce 4-cylinder gasoline engines for Mercedes-Benz and Infiniti models.
Production of the new engines at the new facility, which will have a capacity to produce 250,000 units per year, is expected to begin in 2014 and will also create about 400 jobs.
The plant will also manufacture engines for Mercedes-Benz C-Class, to be launched in 2014, manufactured at Daimler's vehicle facility in Tuscaloosa, Alabama.
Nissan said that the Decherd plant already manufactures engines for the Infiniti JX and four-, six- and eight-cylinder engines for all the manufactured Nissan and Infiniti models in the US.
Daimler and the Renault-Nissan Alliance's collaboration are also planning to launch a vehicle platform sharing initiative between Infiniti and Mercedes, and to produce zero-emission vehicles.