How and why Nissan nearly killed off Infiniti

[cawimmer430]

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, 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 Infinti to its intended glory – and protect it from extinction. Check out the complete interview here.


Link: http://www.autoblog.com/2013/01/25/how-and-why-nissan-nearly-killed-off-infiniti/

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Palmer: Nissan Considered Killing Infiniti


Nissan CEO Carlos Ghosn (center) and Executive Vice President Andy Palmer (left of Ghosn) at Infiniti Hong Kong headquarters opening.

DETROIT – In nearly 24 years of existence, the Infiniti luxury brand has been less than a stellar performer.

Parent Nissan had a volume-rules mentality when it came to Infiniti sales, says Nissan Executive Vice President Andy Palmer, and little attention was paid to developing the type of products that have made the German brands so desirable.

Results were predictably mediocre, and Nissan CEO Carlos Ghosn considered killing the brand.

"Very frankly, very candidly, we don't need Infiniti, we just don't need that brand," Palmer tells WardsAuto in an interview at the 2013 North American International Auto Show here. "Mr. Ghosn challenged me and said, 'We don't have to do Infiniti, you can cancel it if you want.'"

But with luxury brands typically accounting for half the profits of auto makers that have one, Palmer couldn't help but see a future for Infiniti – if Nissan would commit to doing things "properly."

"(Infiniti has) nice premium cars, but frankly, (they're) kind of discount," he says. "And we've been selling those cars over a period of 23 years with a Nissan-push mentality."

Many luxury brands owned by volume manufacturers fall into that same trap, he says, except one: Audi.

Audi has escaped any negative connotation from its association with midmarket Volkswagen by maintaining some autonomy, Palmer says.

Keeping some operational distance while still part of VW's enormous corporate structure has allowed Audi "to create a series of professionals that understand the premium market in a very premium way."

For that reason, Nissan identified Johan de Nysschen, the former chief of Audi in the U.S., as an ideal candidate to head Infiniti.

During de Nysschen's seven years atop Audi's American arm, sales rose from 77,917 vehicles in 2004 to 117,567 in 2011, and the brand began to be breathe the same rarefied air as BMW and Mercedes-Benz.

Nissan finally got its man last summer after years of pursuit, naming de Nysschen senior vice president of the brand worldwide, but not before making some changes.

Prior to de Nysschen's arrival, "we said, 'I want the best guy at Audi,'" Palmer says. "(But) you're not going to get the best guy at Audi unless you've got some reason for him to come."

Palmer rattles off the list of changes made over the past three years to lure the Audi executive to Infiniti, including the signing of a joint-venture pact with Daimler that will see Mercedes engines under the hood of the new Q50 sport sedan; relocation of Infiniti offices from Japan to Hong Kong and the lucrative Chinese market; and green-lighting the 3-row JX cross/utility vehicle and G37-replacement Q50.

Now with the proper "assets" to right Infiniti's path, Palmer says he has a commitment from de Nysschen to improve Infiniti much the same way he did Audi.

One of the first things de Nysschen did after joining Infiniti was to back away from Nissan's previously announced goal of selling 500,000 units globally by 2016, pushing the target back to 2017. Infiniti's global sales tallied roughly 200,000 last year.

Palmer says de Nysschen told him: "I need some time; I don't need the volume pressure. What I'll give you ultimately is a premium brand. And somewhere, by developing a premium brand, you're not going to be disappointed by the profitability and the volume that comes."

In an interview with WardsAuto here, de Nysschen says, "If you hold people's feet to the fire, just for volume, you encourage the wrong kind of behaviors," referring to discounting and incentivizing at retail.

Selling 500,000 units in "2017 or 2020 is less important than that we develop the brand metrics which entrench Infiniti as an unquestioned member of the club of premium automotive brands," de Nysschen says. "That is our mission."

Infiniti will renew all existing models in its lineup, as well as add four new ones over the next four years.

The brand already has confirmed a production compact sedan, based on the Etherea concept, is due in 2015 and a production version of the LE electric-car concept from last year's New York auto show will arrive in 2014.

De Nysschen says a production version of the Essence concept supercar is a possibility, as is a larger-than-M model, although it's unclear in what segment that car would be positioned.

"We don't intend and try and recreate (a) Mercedes S-Class or BMW 7-Series or Audi A8," he says. "That segment indeed is stagnating. No, we plan to produce a very emotional car."

The future model would be "very progressive, perhaps even provocative (in) design." It would be an "aspirational" car, he adds, mixing elements of luxury and performance.

It may be a niche model in cost, but not in appeal.

"I think many people would want it (due to compelling features and design), but it will occupy a premium-price position," de Nysschen says.



Link: http://wardsauto.com/management-amp-strategy/palmer-nissan-considered-killing-infiniti

[Speed_Racer]

And naming everything "Q" is a step in the right direction
[/sarcasm]

[SVT666]

If they were going to rename everything to the same letter, they should have used the one that everyone knows....G.  I don't like the one letter system, so I would have liked to at least have seen the crossovers be differentiated from the cars, and they have kept the EX moniker which the most well known Infiniti crossover, and all the cars should have been G.  Still stupid though.

[TurboDan]

The QX4 was just a rebadged Pathfinder, but I don't know why they called it a flop. I used to see tons of them around. Until the G35 came out in '03-ish that was the Infiniti I saw most on the road. If they still made a luxury "real" looking SUV, it would've been in contention for me while I was shopping.

[Madman]

Who can forget Infiniti's answer to Cadillac Cimarron?



A halfway decent car as a Nissan (when priced accordingly) but a complete joke as a "luxury" car.

[cawimmer430]

Who can forget Infiniti's answer to Cadillac Cimarron?



A halfway decent car as a Nissan (when priced accordingly) but a complete joke as a "luxury" car.

That looks a lot like our Nissan Primera with just an Infiniti badge slapped on.

[MX793]

That looks a lot like our Nissan Primera with just an Infiniti badge slapped on.

That's exactly what it is.

[MX793]

Who can forget Infiniti's answer to Cadillac Cimarron?



A halfway decent car as a Nissan (when priced accordingly) but a complete joke as a "luxury" car.

It was never sold as a Nissan in America and, honestly, I'm not sure it would have sold well as a Nissan.  It was more upscale (and slightly larger) than the Sentra, but I suspect most Americans would have gone to the Altima over a Primera, as the two likely would have been similarly priced.  The car's fate would have been similar to the Contour, which was a nice driving car, but not that much less than the larger Taurus.

[Atomic]

The Q50 is so incredibly beautiful in person (Detroit NAIAS), its name even seemed deserving. I was in awe of the car. The front is gorgeous and everything looked so harmonious. A perfect transformation.

No. Not really crazy about "everything" beginning with "Q" but I think of it as Audi's famous/infamous A-Line moniker.

[CALL_911]

You know, I've always been a fan of these. Especially with these rims.

[Vinsanity]

Who can forget Infiniti's answer to Cadillac Cimarron?



A halfway decent car as a Nissan (when priced accordingly) but a complete joke as a "luxury" car.

The 1st-gen Altima looked more fitting in the Infiniti lineup than the G20/Primera.



The Primera looks like a mini-Maxima from the early 90's, and the Altima looks like a mini-J30. I don't know why they didn't badge the cars other way around instead.

[Submariner]

Infiniti's lineup in the 90's was pretty mediocre.  The 1st generation Q got rave reviews, but then they lost their way with the second and to a lesser extent, the third.

Currently, the only car that stands out to me is the G.  The FX and EX are cramped, the QX is ugly and the M has a nice interior and is great to drive but suffers from the same rancid, exterior design bloat that plagues cars like the Lincoln MKz (the Taurus based one - who the fuck knows what model it is with their piss poor naming scheme)

The G37s is a genuinely good car, and I dare say the convertible is the best looking hardtop this side of the last generation Merc SL.  Hopefully the new one looks better in person.  If not, they took a major step back from what I think is one of the best proportioned cars on the market today. 

[850CSi]

The mid-2000s FX is pure crap, but I hear the later ones are much better.

[2o6]

The G20 sold decently, and was a step up over traditional compacts.



Reminds me a lot in concept of the Acura TSX.

[MX793]

The G20 sold decently, and was a step up over traditional compacts.



Reminds me a lot in concept of the Acura TSX.

Or the Integra sedan...

[Gotta-Qik-C7]

Currently, the only car that stands out to me is the G.  The FX and EX are cramped, the QX is ugly and the M has a nice interior and is great to drive but suffers from the same rancid, exterior design bloat that plagues cars like the Lincoln MKz (the Taurus based one - who the fuck knows what model it is with their piss poor naming scheme) 

 

[TBR]

The G20 sold decently, and was a step up over traditional compacts.



Reminds me a lot in concept of the Acura TSX.

It was supposed to be a pretty good car to drive as well.

[2o6]

It was supposed to be a pretty good car to drive as well.

I wanted one super bad for my first car.

Or the Integra sedan...

IMO, it was nicer? I don't know. I was only two years old in 1995.

[afty]

The G20 sold decently, and was a step up over traditional compacts.



Reminds me a lot in concept of the Acura TSX.

The G20 was underpowered even compared to the TSX.  Only 140 hp.  I think it would have done better if they had used the turbo version of the SR20.

[2o6]

The G20 was underpowered even compared to the TSX.  Only 140 hp.  I think it would have done better if they had used the turbo version of the SR20.

Well, for 1991, I'd think 140HP would be pretty respectable for a car like that.

[Madman]

The MK I G20 had decent enough power for its time and was a good hander to boot.  But, it was WAAAAY overpriced.  After a three year hiatus, the MK II G20 came along with the same engine but more weight.  By then, the game had moved on power-wise, making the G20 very uncompetitive.  From what I recall, the MK I sold okay.  Not great, but okay.   But the MK II was harder to sell than used toilet paper.

The MK I Volvo S40, also overpriced when new but similar in size and concept to the G20 MK II, ran circles around the baby Infiniti thanks to it's turbocharged engine.  For the same money ($25K or thereabouts) you could have bought a Subaru Impreza WRX.  No contest as to which of these gets my vote.

[afty]

Even within the Nissan brand, most people wondered why you would buy a G20 when a Maxima was the same price, was larger, and had the fantastic VQ engine starting in 1995.

[2o6]

The WRX is also a very different car.


And the Volvo, IIRC has a horrible reputation for being unreliable. And IIRC, it sold in similar numbers as the G20.

[Char]

The First generation FX, the Second Generation FX and the G series are some of the best looking/driving cars out there. I would not mind owning any of them. The Current M doesn't look as nice, but it doesn't look bad either, but the new Q50 not only looks like shit, the name sucks too.

[TurboDan]

Even within the Nissan brand, most people wondered why you would buy a G20 when a Maxima was the same price, was larger, and had the fantastic VQ engine starting in 1995.

That's why I wouldn't have bought a Maxima over a G20. Not everybody wants a huge car.

[TurboDan]

The First generation FX, the Second Generation FX and the G series are some of the best looking/driving cars out there. I would not mind owning any of them. The Current M doesn't look as nice, but it doesn't look bad either, but the new Q50 not only looks like shit, the name sucks too.

The FX looks like a misaligned space ship and costs a fortune for what you get.

[Gotta-Qik-C7]

That's why I wouldn't have bought a Maxima over a G20. Not everybody wants a huge car.

I wouldn't call an early 90s Maxima huge........

[2o6]

The FX looks like a misaligned space ship and costs a fortune for what you get.

I used to get the FX and Murano confused.

[Yawn]

So is the original Q45 coming back to the states? I havent read anything but when i was looking on youtube there was a release of the 2013 Nissan Cima which was always the Q45 in the states.. Looks like a more luxurious M... Its not the M because thats the Fuga and its still sold as Fuga in Japan from Nissans link below.. Someone wrote that the Cima is the Fuga Hybrid but that seems to be a stupid idea to change the car name on the hybrid.. But from what I see Nissan is confused on how to name its cars so its quite a possibility..

http://www.nissan.co.jp/CARLINEUP/sedan.html?rstid=20110527rst000000056

Here is the youtube link.. around 4:50 shows all the models together...

2013 Nissan Cima

[Yawn]

I checked Nissans link again and there is a Fuga Hybrid so its a new model.. the dimensions are bigger than the Fuga too..