Renault-Nissan and Daimler have announced the joint engine production of Mercedes-Benz 4-cylinder engines at Nissan’s Decherd, Tennessee, plant beginning 2014.

According to the press release, this marks the first ever production of a Mercedes-Benz engine within the North America Free Trade region.

Dr. Dieter Zetsche, Chairman of the Daimler Board of Management and Head of Mercedes-Benz Cars, said, “In the context of our Mercedes-Benz 2020 growth strategy, we have decided that we will expand the production capacities required for this close to the customers. Through the strategic extension of our cooperation with Renault-Nissan, we can realize near-market engine production in the NAFTA region on attractive economic terms and make optimum use of synergies arising from cooperation. Thus, we are systematically broadening our manufacturing footprint in this important growth market.”

Renault-Nissan CEO Carlos Ghosn adds, “This is the newest milestone on our pragmatic collaboration and our most significant project outside of Europe so far. Localized capacity reduces exposure to foreign exchange rates while rapidly enabling a good business development in North America– a win-win for the Alliance and Daimler.”

Nissan  first began to assemble engines in Decherd, Tennessee, in 1997. Currently manufacturing 4-, 6-, and 8-cylinder engines for the North American produced Nissan and Infiniti products, Decherd has produced more than 580,000 engines in 2011. Production capacity of the Mercedes-Benz 4-cylinder could potentially reach 250,000 engine units per year once full ramp-up is achieved.

Renault is looking to take a step back in order to take two steps forward, looking to discontinue at least five models from their UK lineup in February. At the top of the list of vehicles getting killed off are the Laguna hatchback, Sport Tourer and Coupe, along with the Espace and Grand Espace, Modus and Grand Modus, Wind Roadster and Kangoo.

Those models make up almost 10-percent of Renault’s total sales in the United Kingdom. No direct replacements will be coming for the discontinued Modus, Laguna or Espace models, but Renault is working on new crossovers of all sizes to take their place. A supermini-SUV will debut in 2013 to go along with their Clio model, while the larger crossovers will debut in 2014.

Renault is well aware that the cuts will result in a drop in total sales figures for 2012, but looks forward to a subsequent rise in 2013. Renault will also be reducing its dealer network from 190 to 135 by the start of 2013. On the other hand, Renault’s Twingo, Clio and Megane hot hatches – sold as RS and Gordini badged variants – will be saved from the axe. The UK represents the single largest market for those vehicles, and the most exciting Renaults have solidified their place in the lineup if anything.

[Source: AutoExpress]

Robert Kubica, one of Formula One’s most promising young drivers, will sit out the start of the 2012 F1 season as he continues to recover from a crash that partially severed his arm.

While Kubica is making a recovery, the pace is not as rapid as some had hoped for. Kubica can move his arm, but it remains unknown whether he is physically fit enough to drive a Formula One car at this time.

Kubica was driving a Skoda rally car in an Italian race when he crashed into a barrier that penetrated his car and nearly sliced off his arm. Kubica was replaced before the start of the 2011 season by Nick Heidfeld and Bruno Senna. Renault will have to look for a replacement for 2012, but says that Kubica has a test car and a crew of mechanics at his disposal when he is ready to return.

Hit the jump to see the official press release

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Renault is in development of an ultra low-cost vehicle, along the lines of the Tata Nano. While the Nano is currently suffering from some awful sales numbers (initial projection of 20,000 a month but only saw 1,200 units sold in September), CEO of Renault/Nissan Carlos Ghosn is convinced that an extremely affordable vehicle would be a good segment for Renault to venture into when approaching emerging markets.

According to reports from La Tribune, Gérard Detourbet, the head of Renault’s low-cost division, will be responsible in developing an engine and platform for a vehicle next year that will have a starting price of 2,500€ ($3,300). While Renault is already offering multiple low-cost vehicles in Brazil, it is possible that the new car will not wear a Renault badge, but the badge of sub-brand Dacia (seen above) instead.

[Source: Left Lane News]

Mercedes-Benz is rethinking their line of Smart cars and will bring the ForFour, a four door, four passenger vehicle, to American consumers by 2015.

That choice, among others, came after Mercedes-Benz took over distribution of the brand in the U.S. last July. They also plan to scrap the current FourTwo (above) in favor of a new model developed in partnership with Renault, which will share the platform with their Twingo, though the new version won’t be available until 2014.

The 2012 FourTwo Electric will also get an improved interior and new lithium ion batteries from Deutsche Accumotive GmbH, a joint venture between Daimler and Evonik Industries.

[Source: Automotive News]

Nissan CEO Carlos Ghosn said that the Japanese government’s effort to keep the yen’s value under control had failed and that Nissan was strongly considering moving production out of Japan and into foreign countries.

A weakened United States dollar has meant that the value of the greenback has shifted from 91 yen per dollar to 76 yen per dollar over the past two years. This unfavorable exchange range has led Nissan to examine other countries for vehicle production. ”We have to make investment decisions all the time,” Ghosn told Reuters. “This is one of the factors that we have to consider when we look at a project and say are we going to do it in Japan or are we going to do it in another country?”

Despite this, Ghosn said that he felt vehicle sales would rise in 2012 even in the face of another possible economic downturn. Ghosn also announced a new electric vehicle to be built in China for the Chinese market.

[Source: CNBC]

It’s that time of the year again as Car of the Year begins the laborious task of whittling down new Car of the Year contenders for 2012.

A total of 59 journalists, representing automotive authorities across 23 European countries, have been recruited for the task of choosing top car. The number of journalists to represent each country is based on the relative size of the said country’s car market. Countries like Spain, Germany, Italy, and Great Britain have a well established market, and each will be represented by six journalists.

As for cars, only completely redesigned new models that have launched within the twelve months before the contest are counted. Each car must be available in at least five European countries and must have an expected sales volume no less than 5,000.

Categories considered include design, safety, performance, and price. This year, says the judging committee, technical innovation and value will be especially influential. What also makes Car of the Year unique is the absence of separate genres for its candidates. Rather than selecting the best of the compacts or the best trucks, vehicles with all sorts of engine size and body types will be vying for the same allotment of points.

Comparison testing of the vehicles will be performed in Sweden.

The following 35 candidates selected for the 2012 Car of the Year award include:

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When it comes to bizarre concept cars, the Tokyo Auto Show might be the traditional winner, but when it comes to production time, often things end up looking like a Camry. Not so for those baguette-loving Frenchmen (and women). From Citroen, to Renault, to Peugeot, their production cars are plenty strange and the concepts that inspire them look straight out of science fiction.

Just back from the Frankfurt Auto Show, we’ve assembled a gallery of snap shots of some of the strange and very strange production and concept cars on display by French automakers there. Enjoy the originality, scratch your head or just have a good chuckle at the pictures below.

GALLERY: French Cars of the 2011 Frankfurt Auto Show

Nissan has emerged from the global economic downturn as a powerhouse, quietly growing but without grabbing headlines like Ford or Hyundai have. Now the Japanese automaker has unveiled a new business plan titled “Nissan Power 88″ that aims to grow its share of the global market to 8 percent, while bringing operating profit to a sustainable 8 percent.

The strategy is a global one and includes growth in all markets. How exactly Nissan aims to do this is has been laid out, in brief, in a statement released by the automaker. First, and perhaps most impressive, is news that Nissan will launch one all-new model every six weeks, starting immediately and for the next six years. In total, Nissan aims to offer a global portfolio of 66 vehicles, competing in 92 percent of all markets and market segments.

In addition, Nissan will grow its electric vehicle size, with planned sales of EVs from the combined Renault-Nissan Alliance to hit 1.5 million units by 2016. With new green car innovations will come technological advancements of all sorts, with a planned 90 new innovations over the next six years.

The commercial vehicle arm of Nissan will also grow in significance and the automaker claims it will be the, “world’s leading light commercial vehicle manufacturer” by 2016.

To help support all this growth Nissan is planning to expand its retail sales network from a current level of 6,000 points of sale, to 7,500 in the mid-term of its Power 88 plan.

And of course, what business plan would be complete without projected strong sales in emerging markets like China, where Nissan aims for a 10 percent market share. In addition, Brazil will get a new plant, while Nissan plans further expansion in India and Russia.

As for the Infiniti luxury division, it is projected to grow by more than triple, from the current 150,000 units annually to over 500,000. Along with strong branding support with its current Formula One tie-in, plans include a growth of products, with dealerships to offer at least 10 different models by the end of 2016.

“Nissan Power 88 is the roadmap for our company’s profitable growth,” said Nissan President and Chief Executive Officer Carlos Ghosn. “We will accelerate our growth, bringing more innovation and excitement to our products and services as well as cleaner, more affordable cars for everyone around the world, in line with the energy and environmental challenges of the 21st century.”