A new Mexican manufacturing joint venture between Daimler and Renault-Nissan called Compas (Cooperation Manufacturing Plant Aguascalientes) is being set up to build the next-generation of Mercedes-Benz and Infiniti premium compact vehicles.

According to reports, the 50:50 joint venture was originally announced last year – production of Infiniti models are due to begin in 2017, while the first Mercedes is going to roll off the line in 2018.

Indications have it that the plant will have a production capacity of more than 230,00 vehicles per year, though both companies will look into adding additional capacity if necessary.

Both automakers are cagey about which models will be manufactured in Mexico, but stress that these next-generation of compact models will be jointly developed with ‘close collaboration at every stage of the creative process.” Nonetheless, both marques will have their own distinctive designs, driving characteristics and overall specifications.