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Mercedes and Infiniti confirm joint production in Mexico [w/video]

It's official, folks: After initial reports last week indicated that Mercedes-Benz was preparing to begin assembly at the Nissan plant in Aguascalientes, Mexico, the two parent companies have announced just that. Only instead of using the existing Nissan plant at the site (in operation since 1992), Daimler and the Renault-Nissan Alliance have announced a joint venture to build a new one alongside it.
The latest stage in the growing French-German-Japanese collaboration is part of a new collaboration that will see Infiniti and Mercedes jointly develop and build a line of compact premium vehicles, with the first Infiniti models set to roll off the assembly line in 2017 and the first Benzes to follow a year later. Neither party announced exactly which models that would encompass, but Mercedes already has a robust line of small vehicles (including the A-Class, B-Class, CLA and GLA), and Infiniti has long been toying with the idea of slotting in something smaller below the Q50.
The billion-euro project, split evenly between the two industrial giants, is set to create 5,700 new jobs in Mexico. In addition to the Aguascalientes project, Infiniti and Mercedes are also undertaking joint production of four-cylinder engines (initially for the C-Class and Q50) in Decherd, Tennessee, from which they will be exported around the world. By the time the new factory in Mexico reaches full capacity in 2021, it will have the capability to produce 300,000 vehicles annually. That's on top of the 850,000 vehicles the existing facility is capable of handling.

Submit your questions for Autoblog Podcast #344 LIVE!

We're set to record Autoblog Podcast #344 tonight, joined by Doug DeMuro, author of Plays With Cars, formerly of Porsche Cars North America, and all-around swell guy. You can drop us your questions and comments via our Q&A module below, and we'll give them extra-diligent attention. Subscribe to the Autoblog Podcast in iTunes if you haven't already done so, and if you want to take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.
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Next Infiniti FX to gain interior volume

The Infiniti FX, soon to be renamed QX70 thanks to the Japanese brand's convoluted naming scheme, is currently in the midst of its second-generation. And while we like the compact, sporty crossover's driving character a lot, it lacks the "utility" part of the CUV moniker. That lack of cabin space will be addressed in the future, though.
Automotive News recently sat down with Nissan's global design boss, Shiro Nakamura, to talk about the future of what he called "the icon of Infiniti." And while Nakamura-san admitted the FX/QX70's worth to the brand, its sales have long been something of a disappointment. "Exterior and styling-wise, it's very strong as an icon. But to be honest, its sales volume has not been as big as we wanted," a reality Nakamura believes is due largely to its tight cabin relative to its competition.
Finding the right balance might be difficult, though. The FX/QX70 is selling extremely well in both China and Russia, according to Nakamura, because of its looks. Altering that style in order to increase interior space risks alienating a new and important group of buyers for Infiniti. The designer put it best when he told AN, " It is selling well in China and Russia because it stands out. So we want to maintain that striking look." As it stands, we'll likely be living with the current vehicle for a few more years - AN doesn't expect the third-generation of the FX/QX70 to arrive until 2015 or 2016.