The manufacturing three way partnership between Mercedes-Benz and Nissan in Mexico is regarded as on shaky floor and will not proceed past the center of the last decade.

The German automaker joined forces with the Renault-Nissan alliance in 2010 to share car and powertrain applied sciences. In addition they function an meeting plant in Aguascalientes, Mexico that builds the Mercedes GLB, Infiniti QX50 and QX55.

Whereas not too long ago talking throughout Mercedes-Benz’s quarterly earnings name, chief government Ola Kallenius mentioned the long-term prospects of the partnership had but to be determined.

“We’ve a superb partnership with Nissan, and it’s supposed to remain this manner for the following three years,” Kallenius mentioned. “What’s going to occur after that, we haven’t determined but.”

Auto Information states that the three way partnership and the way forward for the meeting plant is in danger with the businesses shifting their U.S. lineups in the direction of electrical autos. Each LMC Automotive and AutoForecast Options assert manufacturing may finish on the website in the midst of the last decade.

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“The outlook for the underutilized COMPAS plant is dim as a result of there’s no product allotted past 2026,” AutoForecast Options vice chairman Sam Fiorani mentioned.

The manufacturing unit operated by Mercedes-Benz and Renault Nissan has the capability to construct 230,000 autos yearly however final yr, simply 108,681 autos had been produced on the website. Manufacturing reached its peak in 2020 however nonetheless didn’t attain 50 per cent of capability.

Dwindling manufacturing on the website is due partly to falling demand for the fashions constructed there. Certainly, U.S. gross sales of the Infiniti QX50 dropped by 42 per cent final yr. Mercedes-Benz additionally determined to cease constructing the A-Class on the website in 2020 and returned manufacturing to its plant in Ranstatt, Germany.