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Daimler and Nissan venture to build cars in Mexico

Nissan and Daimler have been partnering ever closer for years, and now an unnamed source has told Reuters that the automakers have agreed to a 50-50 joint venture in Mexico that would build Infiniti and Mercedes-Benz models. Given that the rumors about just such a deal go back nearly six months and similar rumblings are years old, this arrangement has been a long time coming.
The insider tells Reuters that a memorandum of understanding was signed between them last month to build the Mercedes GLA-Class and new Infinitis at Nissan's Aguascalientes factory. The rumor didn't say when production would begin. It wouldn't be the first time the two automakers have decided to share this platform - Infiniti will build its Q30 compact on it in the UK next year.
The partnership between the Renault-Nissan Alliance and Daimler goes back to 2010 when the companies signed an agreement to share engines, factories and platforms. Since then, products of the partnership have included the underpinnings for the next-generation Smart and Renault Twingo and shared engines among some other models.

Mercedes and Infiniti confirm joint production in Mexico [w/video]

It's official, folks: After initial reports last week indicated that Mercedes-Benz was preparing to begin assembly at the Nissan plant in Aguascalientes, Mexico, the two parent companies have announced just that. Only instead of using the existing Nissan plant at the site (in operation since 1992), Daimler and the Renault-Nissan Alliance have announced a joint venture to build a new one alongside it.
The latest stage in the growing French-German-Japanese collaboration is part of a new collaboration that will see Infiniti and Mercedes jointly develop and build a line of compact premium vehicles, with the first Infiniti models set to roll off the assembly line in 2017 and the first Benzes to follow a year later. Neither party announced exactly which models that would encompass, but Mercedes already has a robust line of small vehicles (including the A-Class, B-Class, CLA and GLA), and Infiniti has long been toying with the idea of slotting in something smaller below the Q50.
The billion-euro project, split evenly between the two industrial giants, is set to create 5,700 new jobs in Mexico. In addition to the Aguascalientes project, Infiniti and Mercedes are also undertaking joint production of four-cylinder engines (initially for the C-Class and Q50) in Decherd, Tennessee, from which they will be exported around the world. By the time the new factory in Mexico reaches full capacity in 2021, it will have the capability to produce 300,000 vehicles annually. That's on top of the 850,000 vehicles the existing facility is capable of handling.

Is 120 miles just about perfect for EV range?

When it comes to battery-electric vehicles, our friend Brad Berman over at Plug In Cars says 40 miles makes all the difference in the world. That's the approximate difference in single-charge range between the battery-electric version of the Toyota RAV4 and the Nissan Leaf. It's also the difference between the appearance or disappearance of range anxiety. The 50-percent battery increase has zapped any lingering range anxiety, Berman writes. The RAV4 EV possesses a 40-kilowatt-hour pack, compared to the 24-kWh pack in the Leaf. After factoring in differences in size, weight and other issues, that means the compact SUV gets about 120 miles on a single charge in realistic driving conditions, compared to about 80 miles in the Leaf. "The 50 percent increase in battery size from Leaf to RAV has zapped any lingering range anxiety," Berman writes. His observations further feed the notion that drivers need substantial backup juice in order to feel comfortable driving EVs. Late last year, the Union of Concerned Scientists (UCS), along with the Consumers Union estimated that about 42 percent of US households could drive plug-in vehicles with "little or no change" in their driving habits, and that almost 70 percent of US commuters drive fewer than 60 miles per weekday. That would imply that a substantial swath of the country should be comfortable using a car like the Leaf as their daily driver - with first-quarter Leaf sales jumping 46 percent from a year before, more Americans certainly are. Still, the implication here is that EV sales will continue to be on the margins until an automaker steps up battery capabilities to 120 or so miles while keeping the price in the $30,000 range. Think that's a reasonable goal to shoot for?