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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.

Nissan Skyline Nismo gets a more powerful Z engine

Recent rumors claim the Nissan Skyline will morph into an electric crossover in the coming years. Regardless of whether or not they're true, the company isn't done with the current, gasoline-powered Skyline yet and it launched a limited-edition, Nismo-branded model in Japan. If you're experiencing deja vu, it's likely because the Nissan Skyline is sold as the Infiniti Q50 in the United States. We even get a range-topping, performance-oriented trim level, the 400-horsepower Red Sport 400. The Skyline Nismo goes further, though, by adopting an evolution of the twin-turbocharged, 3.0-liter V6 that powers the Red Sport 400 and the Z coupe. It's rated at 414 horsepower and 404 pound-feet of torque. For context, the Q50 and Z pack 400-horsepower and just 350 pound-feet of torque. The Nismo's engine spins just the rear wheels via a seven-speed automatic transmission, whereas America's Red Sport 400 is available with all-wheel drive. Nissan didn't settle for adding a few horses to the cavalry, slapping a couple of "Nismo" emblems to the body, and calling it a job well done. Its engineers redesigned the Skyline's suspension system, installed fade-resistant brake pads and recalibrated the various vehicle control systems, including the ABS, to deliver a sportier driving experience on and off the track. The brand even went as far as securing the windshield and the rear window with a type of adhesive normally reserved for the GT-R Nismo to improve rigidity without adding weight.  Visual updates are part of the Nismo package as well, including 19-inch Enkei wheels wrapped by tires that are wider than the ones worn by the regular-production model, an old-school "GT" emblem on each fender, and a body kit that includes a front splitter and side skirts. These updates aren't just for show: Nissan notes the redesigned grille opening helps channel additional cooling air to the radiator and the oil cooler. The Nismo treatment also permeates the cabin. The front passengers sit on Recaro sport seats with red inserts, while the driver faces a steering wheel with a red 12-o'clock mark as well as a new-look tachometer with a red ring and a small "Nismo" logo below the needle. Enthusiasts who want an even rarer version of the current-generation Skyline can try their luck at scoring the Nismo Limited.

Nissan recalls 226k vehicles over airbag inflators

Nissan and Infiniti are the latest automakers to issue recalls involving faulty airbag inflators from Takata. The Japanese automakers have announced campaigns covering about 226,326 units from seven models built in the early 2000s because they contain the bad part in the passenger-side, front airbag. The affected vehicles include the 2002-2004 Nissan Sentra, 2002-2003 Pathfinder and 2002-2003 Maxima, and it also covers the 2002-2003 Infiniti QX4, 2002-2003 I35, 2003 FX45 and 2003 FX35.
Like the other vehicles with the faulty inflators, it's possible for the part to rupture during airbag deployment and spray metal shrapnel at occupants. Nissan and Infiniti have even included vehicles with replacement airbags in this campaign because those parts also could have been defective. Both companies were also part of the earlier regional campaign to fix cars in high-humidity climates where the problem has been found to be the worst.
As is the usual response, Nissan and Infiniti will notify owners of the affected vehicles and will make the repair at no charge. According to the filing with the National Highway Traffic Safety Administration, these fixes will commence around August 11. Scroll down to read the report from NHTSA, or read the full defect notice as a PDF, here.