Back in 2010, Renault-Nissan and Daimler announced a new partnership that would see the two share powertrains and work on various projects. Some of those have come to fruition such as the Infiniti QX30, which is a Mercedes-Benz GLA-Class in different clothing and the platform that underpins the Infiniti QX50. But other projects between the two have been halted.
Late last week, the Nikkan Kogyo business daily reported that joint development of luxury compact car project has been suspended. The paper cites the change in consumer preference to crossovers and the uncertainties over tariffs. The second reason is important as the new compact sedan was expected to built at a plant in Aguascalientes, Mexico. The plant is 50/50 joint venture between Daimler and the Renault-Nissan-Mitsubishi alliance.
Nissan spokesman Shiro Nagai declined to comment when asked by Automotive News. He did say that Nissan remains committed to the partnership.
Source: Nikkan Kogyo via Automotive News (Subscription Required)