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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.

Infiniti will move back to Japan from Hong Kong in 2020

BEIJING – Nissan's premium brand Infiniti is relocating its headquarters back to Japan from Hong Kong, its home since 2012, to create "more operational efficiencies" with its parent company, according to a document seen by Reuters on Wednesday. The move planned for mid-2020, and expected to be publicly announced later on Wednesday, will help the Japanese automaker cut costs amid a slump in its global earnings in the year ended March 31. "The relocation will further integrate (Infiniti) with global design, research and development and manufacturing functions based in Japan," Nissan said in the statement, adding that Infiniti would continue to "operate independently". The move also was "crucial" for Nissan to follow through on its strategy to electrify the Infiniti lineup, the document said, with plans for every premium model launched from 2021 to be either all-electric or "e-Power" hybrid. A Nissan official, speaking on condition of anonymity, said that while there was a "fair amount of platform and other base technology sharing" between Infiniti and the main volume brand Nissan, "there could be more". Nissan's global operating profit plunged 45% in the last fiscal year and would likely drop another 28% to "rock bottom" in the current one, according to company filings earlier this month. Infiniti's move back to Japan will reverse a decision made under ousted leader Carlos Ghosn to dilute the premium brand's Japanese origins in order to foster a more global image. Its Hong Kong headquarters has about 180 employees who were told about the move back to Yokohama earlier on Wednesday, according to the Nissan official. The Hong Kong headquarters and the global image it was intended to promote were seen as critical for Infiniti to make inroads in China, where being Japanese can sometimes be a handicap because of historical animosities. In 2012, Infiniti and other Japanese brands took a battering in the wake of diplomatic spats over disputed islets known as Diaoyu in China and Senkaku in Japan. Since then, Japan's bilateral relationship with China has steadily improved and Japanese automakers including Nissan and Toyota are seeing their businesses expand, even as China's overall auto market has slumped over the past year. (Reporting by Norihiko Shirouzu; Editing by Stephen Coates)

Infiniti is blazing an unconventional path to electrification

When it comes to electrification, Infiniti has a history of speaking a great deal but doing little. The Nissan-owned company's plug-in offensive will start in the 2020s, and it provided preliminary details about the technology that motorists can expect to find in showrooms in the not-too-distant future. Eric Rigaux, Infiniti's general manager of product strategy and planning, told Roadshow the firm's engineering department is putting the final touches on two forward-thinking electrified powertrains. The first one will run solely on electricity, while the second one will rely on a gasoline-powered generator to provide more range. Both are being developed to fit into a flexible new platform. Technical details about the electric setup remain vague, so we don't know how big of a battery pack Infiniti will use, or how many motors will draw electricity from it. However, Roadshow learned the gasoline-electric layout will never need to be plugged in, because a 1.5-liter, three-cylinder engine equipped with Infiniti's innovative variable-compression technology will produce the electricity it needs to run. The triple won't directly spin the wheels; it will channel the juice it creates to a battery pack. It's not a zero-emissions solution, but it's one that makes a lot of sense, because users won't need to wait for a charge, and they'll be able to drive for about 500 miles between fill-ups. The now-defunct Chevrolet Volt featured a similar drivetrain, but owners had the possibility of plugging it in. Infiniti won't give motorists that option; there won't be a plug anywhere on the car. Fluid-filled motor mounts and active noise cancellation will ensure the passengers don't feel or hear the triple whirring away. Meanwhile, two electric motors (one over each axle) will deliver between 248 and 429 horsepower; final specifications haven't been signed off yet. And, because power will come from gasoline, there's no need to integrate a bulky battery pack into the chassis. Infiniti's future gasoline-electric models won't require anything bigger than a 5.1-kilowatt-hour unit, which can unintrusively be stuffed under the trunk floor or sandwiched between the floor and the rear seat. Infiniti chose a crossover to inaugurate its battery-electric powertrain; the QX Inspiration concept (pictured) unveiled during the 2019 Detroit Auto Show shed light on what the model will look like.