Daimler has not said which models it plans to build in Mexico.
German business publication Manager Magazin on Sunday, citing unnamed company executives, said the company plans to build the next-generation CLA and a new A-class sedan variant at the Aguascalientes factory, which is 500km northwest of Mexico City.
Analysts at International Strategy & Investment (ISI) expect Nissan and Mercedes to run joint production in Aguascalientes to export to the United States starting in 2017.
Mercedes, Nissan and alliance partner Renault have shared engines, plants and vehicle architectures for small cars and vans since Zetsche and Ghosn announced a broad-based partnership in 2010, underpinned by small reciprocal shareholdings.
BMW, Audi plans
Mexico is attracting investment by German premium automakers because of its free trade accords, a cheap and skilled labor force and proximity to the lucrative U.S. market.
BMW is nearing a decision to open a plant in Mexico to produce 3-series and 1-series cars and possibly Mini models, according to a report in the German business newspaper Handelsblatt last month. BMW is still deliberating on where to locate a new North American factory but will reach a decision before the summer break, CEO Norbert Reithofer said at an industry event on Wednesday, without saying which models would be built there.
Audi is building a factory in San Jose Chiapa, Mexico, with annual production capacity of about 150,000 vehicles to make the Q5 SUV starting in 2016.
Automotive News Europe contributed to this report