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Berlin (AFP / AFP) - Japan's giant car companies, Nissan and German luxury car company, Mercedes-Benz, on Sunday announced a partnership to make the machines in the U.S., making it their biggest cooperation outside Europe.

Both companies will work together to make the engine Mercedes-Benz gasoline-fueled four-cylinder assembly at a company in Decherd, south of Tennessee, USA.

Production is expected to start in 2014, with 250,000 machines sold each year when the company's assembly meets full capacity.

"This is an important historical latest in our collaboration is pragmatic and is the largest project outside Europe so far," said Renault-Nissan CEO, Carlos Ghosn.

Daimler and Nissan, which has been working with the French car company, Renault, more than a decade, has announced that in spring 2010 they will work together to make economy cars.

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