Infiniti will launch production of a new Mercedes-designed turbocharged 2-liter engine in Decherd, Tenn.

, this month, to power a Japanese-made Q50 that will sell only in Europe.

The plan, which starts June 26, is the latest piece of an ongoing global product-sharing deal between the Renault-Nissan Alliance and Daimler AG. It is also part of Infiniti’s own strategy to reshape its worldwide product portfolio with European-accented models and engines.

Separate from its position in the United States, Infiniti is slugging it out with European luxury manufacturers as it attempts to establish itself in Europe’s primary markets. It has faced a difficult time there, limited by the catalog of engines produced by parent company Nissan.

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Infiniti Tennessee Plant To Begin Production Of Mercedes Powerplants This Month

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