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How and why Nissan nearly killed off Infiniti

Launched in 1990, Infiniti was expected to be Japan's answer to BMW (Lexus would end up chasing Mercedes-Benz). Yet things went awry almost right out of the gate. Overlooking the fledgling automaker's now infamous early marketing campaign, its product line over the past twenty-four years has been a roller coaster ride of strong hits (Q45, FX35 and G35) and frustrating misses (M30, I30 and QX4).
In a recent interview with Ward's Auto at the Detroit Auto Show, Nissan Executive Vice President Andy Palmer revealed that the company's luxury brand was almost cancelled by CEO Carlos Ghosn as unnecessary. Infiniti, like most premium marques owned by a volume manufacturer, had fallen into the trap of losing autonomy and pushing its high-end product just like its mainstream models.
The one obvious exception to this industry blunder, said Palmer, was VW Group's Audi brand. Realizing that Audi's impressive comeback over the past two decades shamed even that of actor Robert Downey Jr., Nissan hired Audi veteran Johan de Nysschen to bring Infiniti to its intended glory - and protect it from extinction. Check out the complete interview here.

Nissan and Renault shelve merger plans, will repair their alliance

Renault and Nissan have shelved plans to push towards the full merger former leader Carlos Ghosn craved and will instead fix their troubled alliance to try to recover from the coronavirus pandemic, five senior sources told Reuters. Nissan has long resisted Renault's proposals for a full-blown merger as executives felt the French carmaker was not paying its fair share for the engineering work it did in Japan, sowing discord that some feared could wreck the partnership. Now, with carmakers around the world reeling from the pandemic, the partners are planning to overhaul an alliance that largely failed to convert its global scale into a competitive advantage beyond the joint procurement of parts. Both struggling carmakers are set to announce mid-term restructuring plans this week that will serve as a peace treaty designed to resolve the long-standing tensions, five people familiar with the overhaul told Reuters. "After the rain, the earth hardens," said one senior Nissan source, citing a popular Japanese proverb that means relationships become stronger after a period of strife. All five sources within the alliance, which also includes Mitsubishi, declined to be named because they are not authorized to speak with media. Nissan and Renault are each planning substantial restructuring and cost cuts that could affect tens of thousands of jobs, with the Japanese company to announce its measures on May 28 and its French partner likely to follow the next day. Before that, Mitsubishi, Nissan and Renault are holding a joint news conference on May 27 during which they are expected to outline the philosophy behind their new "leader-follower" approach to the alliance. The sources said the companies were unlikely to disclose many details at the events this week of how the new approach will be used to share costs as the companies were still working on specific projects. However, the crisis at both carmakers has accelerated efforts to resolve the disagreements that have stymied collaboration and cost-sharing in technology and product development for five years, the sources said. Mitsubishi, Nissan and Renault all declined to comment officially about alliance plans. 'Leader-follower' The alliance has steadily ramped up output over the years, delivering over 10 million vehicles for the first time in 2017, the first full year after Mitsubishi joined the partnership.

Nissan VP suggests next Z will offer multiple engines

Roel de Vries, the corporate vice president and global head of marketing and brand strategy for Nissan, told Australia's CarAdvice that as far as he's concerned, any engine in the 370Z "[needs] to deliver on what the car stands for and if the 370Z stands for real performance and real driving I think it doesn't need a V6 to do that." At first read, it could look like de Vries is softening us up for a next-generation Z that doesn't come with a V6, a move that would disappoint a lot of the coupe's fans. Or, what if de Vries was actually getting us ready for a Z with multiple engine options, instead of only a V6, in order to expand its global appeal? That appeared to be the gist of his comments, the exec saying that they couldn't sell a V6-engined Z in Europe, but even if they offer a four-cylinder there, the V6 could live on because, "why should we give it up?" With the coupe's current name a factor of the 3.7-liter displacement of it's V6, though, what is the future for a car with several engine options? Said de Vries, "We [will] definitely keep the Z name, but when we did 350 to 370 it was because of the capacity, but who says the next-generation doesn't have three engines and its not just called Z?" This kind of talk has been going on all year, the real question being how many engines will the car get and what's the endgame. At the beginning of the year, ex product chief Andy Palmer said the car codenamed Z35 would use a "downsized four-cylinder turbocharged engine." In August, Motor Trend reported that the next Z would offer "a mixture of smaller but powerful engines," including a hybrid, but that a V6 would remain the headliner. Two weeks later, MT said that Nissan wanted to transition customers from the naturally aspirated V6 to a turbocharged four-cylinder with the same power, eventually, but would begin with both on the menu. Parallel to that are Shiro Nakamura's out-loud musings about how to merge the next Z and the IDx concepts into "a more affordable, more approachable sports car." The answers, whatever they are, will be a big deal for the brand.