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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 boss ices plan for EV

Infiniti President Johan de Nysschen has postponed plans for an electric vehicle in order to focus on high-volume models. Automotive News reports de Nysschen is attempting to be realistic about Nissan CEO Carlos Ghosn's goal of nearly tripling Infiniti global sales from 170,000 units last year to 500,000 by March 31, 2017, saying, "500,000 cars by 2017 is an inordinately ambitious challenge." An electric vehicle would likely sell in rather small numbers.
Still, the executive is already making moves to improve Infiniti sales worldwide with new production in both China and England. Meanwhile, the company plans to unveil a new volume compact sedan set to bow in 2015. Meanwhile, de Nysschen is also working on two new models above the company's current M line. Those will borrow styling cues from machines like the Essence Concept, but will be far less exotic, tilting more toward high-performance luxury than true sports car.

Infiniti recalls Q50 and Q70 Hybrid models

Infiniti is issuing three separate recalls for its Q50 Hybrid and Q70 Hybrid and M35 Hybrid covering roughly 13,794 vehicles in North America.
The larger campaign listed by the National Highway Traffic Safety Administration covers 5,831 examples of its 2014 Q50 Hybrid (shown above) and 2014 Q70 Hybrid in North America, with 5,412 of those in the US and its territories. According to NHTSA, "due to a software error, the electric motor may stop working while the vehicle is being driven using the electric motor only," creating a "stall-like condition." To fix the fault, the company is reprogramming the motor inverter software, and owners should be contacted in mid-November.
The second recall covers just 890 2014 Q50 Hybrid and 2014 Q70 Hybrid models in North America, with 817 of those residing in the US. It's possible that their transmission housings were damaged during manufacturing, and on affected models, the housing could have a crack that might fracture while driving. Dealers will inspect the transmission and faulty examples will be replaced.