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Infiniti is pulling out of Western Europe, cutting models

BEIJING — Nissan's premium brand Infiniti has announced it will exit Western Europe early next year, as it restructures its global operations and focuses on the world's top two auto markets. Infiniti said it will discontinue the Q30 sedan and the QX30 sport-utility vehicle and cease their production by the middle of 2019 at Nissan's manufacturing factory in Sunderland, England. Both models are sold globally but produced only in Britain. The QX30 is sold in the United States. The move comes as Infiniti seeks to divert its resources to markets with bigger opportunities, such as China and the United States, from a region where non-European premium brands are struggling to compete against local players such as Audi, BMW and Mercedes-Benz. Nissan also recently scrapped plans to build its new X-Trail SUV in Britain amid the uncertainty surrounding Brexit, saying it had taken the decision to optimize its investments by building the next generation model in Japan. "Western Europe remains the most challenging and competitive region for premium cars," Infiniti's chief spokesman, Trevor Hale, told Reuters. Infiniti's sales in western Europe almost halved last year to 5,800 vehicles. In addition to the tough competition, the Japanese premium brand, headquartered in Hong Kong since 2012, has struggled to effectively meet emissions and other regulatory requirements in the region, Hale said, referring to stringent Euro 6 emissions requirements and other regulatory challenges. "The commercial reality for Infiniti in Western Europe is that there is simply no visibility of a viable and sustainable business, especially given the regulatory challenges," he said. Infiniti said an exit from Western Europe will allow it to focus on its initiative to electrify a good portion of its product portfolio from 2021 and discontinue diesel offerings. The brand plans to focus more on its SUV lineup in North America, bring five new or significantly-redesigned vehicles to China over the next five years, improve quality of sales and residual value and realize more synergies with Nissan. "This is all part of Infiniti's vision to become a top challenger brand in the premium segment," it said. As it prepares to withdraw from Western Europe, Infiniti said it is working to find alternative opportunities for employees who would be affected, consulting with employee representatives where necessary and identifying opportunities for transition and training support where appropriate.

Infiniti will reinvent its models, tech and design language as part of reboot

Infiniti raised more than a few eyebrows when it announced plans to follow a strategy it described as Nissan-Plus. Although this term suggests the brand's image will be dangerously watered down, its chief executive stressed its flag will remain firmly planted in the luxury car segment as he outlined what to expect in the coming years. The executive team led by Infiniti boss Peyman Kargar will reboot the company with a focus on profitability. "Premium brands should bring more money to the company, so that's the objective. We are not at the level we want to be," he told Automotive News. Several new products are on their way, including a crossover with a fastback-like roofline named QX55, and Kargar clarified many future models will ride on an architecture shared with parent company Nissan. It will be compatible with gasoline-powered, hybrid and electric drivetrains. He explained sharing platforms and components is necessary to save money because the company, like its peers and rivals, is spending a small fortune on developing electrified, autonomous, and connected technology. The shift will likely spell the end of the driver-friendly rear-wheel drive platform found under the Q50 and the Q60, but don't expect Infiniti to put its emblem on, say, a Sentra, and call it a day. It will remain a luxury brand. "The objective is to use these assets of the company, and then to reinject the money we are saving into the luxury experience and ingredients of Infiniti. We will put more money into Infiniti's future, but this money will come from the savings in globalized platforms," Kargar explained. The strategy he's outlining is one many of the firm's competitors have already adopted. Lexus, Acura, and Audi all build cars using parts sourced from their respective parent company. Lamborghini's Urus is related to the Volkswagen Touareg under the sheetmetal. Kargar noted every upcoming new model will be defined by an overhauled design language. We don't know if recent concept cars (like the QX Inspiration introduced in Detroit in 2019; pictured) will influence its upcoming vehicles. However, its future cars will offer nicer interiors, more user-friendly infotainment systems, and they'll receive tech features before Nissan's variants get them, which, oddly, hasn't always been the case in recent years. Infiniti's turn-around will start in 2020, when the aforementioned QX55 makes its debut after a brief delay.

Nissan looking to expand UK plant to build Infiniti Q30

With the Infiniti Q30 concept heading to the Frankfurt Motor Show next month and a future premium compact model heading into production at Nissan's Sunderland UK assembly plant, just connecting the dots tells us this new small Infiniti is headed for UK production. Backing this up, Reuters is reporting that Nissan is looking to expand the Sunderland plant by 25,000 square feet, while Automotive News Europe takes it a step further by almost confirming that the Q30 will be built alongside the Nissan Qashqai and Note.
The reports say that Sunderland is already the UK's biggest automotive plant, but the expansion will make it even larger with production capacity expected to rise from the current 500,000 units built each year to more than 550,000. There is no indication if the expansion will bring more jobs to the plant, which already employs around 6,000 people.