According to the Reuters, Daimler AG (DDAIF) is planning to produce passenger cars under the Mercedes-Benz moniker together with Renault and Nissan Motor Co. (NSANY). The first batch of vehicles would be produced from 2016 in Eastern Europe.
The passenger cars include Mercedes off-road vehicle and cars of Nissan's premium brand Infiniti. Thus, the joint venture will offer a tough challenge for the market leaders in the luxury business including BMW and Volkswagen AG's (VLKAY) Audi.
Revenues from Daimler’s Mercedes-Benz Cars segment went up 5% to €15.4 billion ($18.6 billion) in the second quarter of 2012. Unit sales augmented 4% to 370,384 cars. Revenues were aided by higher unit sales in the U.S. and Asia along with a growth in compact-car segment and sports utility vehicles (SUVs).
The companies collaborated in April 2010 following the end of the alliance between Daimler and Chrysler in 2007. With a primary objective of reducing development costs and addressing the market demand, the companies have been seeking means to share vehicle, engine and other technologies.
Daimler's Japanese truck unit Mitsubishi Fuso Truck and Bus Corporation agreed to supply Fuso Canter light truck to Nissan in June 2012 in exchange for Atlas F24 truck. The move will enhance the light-duty truck business of both companies in Japan.
Daimler and Nissan are also planning to produce Mercedes-Benz gasoline engines. The engines will be produced at Nissan's factory in Tennessee from 2014 and will be used in Mercedes and Infiniti models.
Daimler is a leading auto and truck producer headquartered in Stuttgart, Germany. The company develops, manufactures, distributes and sells passenger cars, light trucks and commercial vehicles. It also provides financial and other services relating to its automotive business. Currently, it retains a Zacks #3 Rank, which translates into a short-term Hold rating.
DAIMLER AG (DDAIF): Free Stock Analysis Report
NISSAN ADR (NSANY): Free Stock Analysis Report
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