Nissan, Daimler may build vehicles at each other's plants

Nissan Motor Co. and Daimler AG may manufacture vehicles at each other's factories in the U.S. as part of a three-way alliance with Renault SA.

"There is a possibility of cross-manufacturing," Nissan and Renault's Chief Executive Officer Carlos Ghosn, 56, said in an interview. "We will probably be using existing assets, so there are no plans to build a new factory in the partnership."

Renault, Nissan and Daimler today signed an agreement that will include cross-shareholdings of as much as 3.1 percent. The automakers plan to share development costs for platforms and technologies including powertrains, adding up to as much as 2 billion euros ($2.7 billion) in combined savings for Renault and Nissan in the first five years, according to the companies.

Nissan, Japan's third-biggest automaker, exports all of its Infiniti luxury vehicles to the U.S. from factories in Tochigi and Kyushu in Japan, while Daimler also ships some cars and commercial vehicles to the U.S., Ghosn said. Nissan's Canton, Mississippi factory, which makes Quest minivans and Armada sport-utility vehicles, is capable of building light trucks, he said, while Daimler has a car plant in Alabama.

"To the extent that automakers have common parts and common development of vehicles, sharing production may well be a project they will consider," said Tatsuya Mizuno, director of Mizuno Credit Advisory in Tokyo.

As part of the linkup, Daimler will swap a 3.1 percent stake for shares in Renault and in Nissan, the three carmakers said in a joint statement Wednesday.