Germany’s Daimler is examining the joint production of small luxury vehicles with Japan’s Nissan at a Nissan plant in Mexico, and expects a decision by the end of the year, a group board member told a German newspaper.

“This would be an option, if our compact cars business in North America performs well,” Andreas Renschler, who is also head of production for Mercedes, was quoted as saying in an interview with Frankfurter Allgemeine Zeitung published on Saturday.