Mercedes-Benz To Build Mexico Factory TokaiCorp
Nevada , July 9, 2014 (Newswire.com) - TokaiCorp.net - German industrial group, Daimler AG is rumored to be close to announcing its intention to build a production plant at a facility run by its alliance partner, Nissan.
According to a report in Germany’s “Manager” magazine, the executive board will approve the program over the course of the next two weeks.
“This is another example of how automakers are collaborating in order to share the costs of product development and manufacturing and produce greater volumes in order to attain economies of scale,” said an Tokai Corp auto sector researcher.
Daimler and Nissan have already laid out the legal architecture for a equal partnership joint venture that would serve to ease Daimler's manufacturing capacity limitations in North America while allowing both partners to take advantage of Mexico's much lower labor costs with a view to exporting into the United States profitably.
Nissan’s involvement in Mexico has been extensive. The Japanese automaker has two assembly plants at Aguascalientes that produce Versa Note and Sentra models both of which are then exported into North America.
“If the rumor proves to be substantiated, then it could very well yield considerable benefits for Daimler in the medium to long term. Mercedes is behind BMW and Audi in terms of global sales right now and while individual buyers at this level aren’t necessarily swayed by price, fleet managers looking for high quality executive cars could well be influenced by models with a lower price tag than their rivals,” added the TokaiCorp.net researcher.
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