automotive

Nissan Infiniti Marks European Debut With New Platform

Infiniti Nissan's luxury division, Infiniti, is launching what it is calling a new global brand platform including a new global tagline: "Inspired Performance."

The company is simultaneously entering the European market with its first dealership, which is in Paris. In the next six months, it will open 21 sales centers in 13 European countries, including France, Spain, Italy, Belgium, The Netherlands, Switzerland, Poland, Bulgaria, Greece, Estonia, Latvia, the Czech Republic, Romania and Israel.

By 2010, per a company release, Infiniti Europe will comprise 80 Infiniti dealerships selling the Infiniti G Sedan and Coupe, Infiniti EX crossover, Infiniti FX performance crossover and--from mid-2009--the Infiniti G Convertible.

Carlos Tavares, head of Infiniti worldwide, said in a release: "Our new tagline illustrates that Infiniti cars are much more than exciting machines that move you from one place to another. Infiniti has an emotional, inspirational appeal, offering a very personal style of modern luxury and respectful treatment for the world's most discerning customers."

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Infiniti, which has been in the U.S. for about 20 years, is currently in Canada, the Middle East, Taiwan, Korea, and Russia, the Ukraine and China.

The company says in fiscal 2004, only 7% of sales were outside the United States. By fiscal year 2010, Infiniti is projecting that extra-U.S. sales will constitute 25% of global sales.

Art Spinella, president of CNW Market Research in Bandon, Ore., says that Infiniti probably needs to expand globally because it is faring poorly in the U.S. market. "From the very beginning, Infiniti was intended for just the U.S.," he says. "But their volumes here aren't enough to keep the brand alive. Expanding into other markets with the same products at least amortizes sheet metal and interiors, and that goes a long way to bring expense down."

Tom Libby, head of industry analysis at J.D. Power and Associates, says that Infiniti has been struggling in the U.S. luxury car market partly because, out of its five-vehicle lineup (six if you include both sedan and coupe versions of the G), only the G sedan--and to a lesser extent, the FX crossover--have been hits.

He says that through the first nine months of this year, Infiniti's U.S. share is 0.84% of market, which is an improvement over last year. "Last year, they were 0.76%, but they are not in same league as the top luxury brands." He says that Lexus constituted 1.90% of the U.S. auto market in the first nine months; BMW is 1.82% of the U.S. market; and Mercedes is 1.65%. Infiniti also trails Acura and Cadillac.

Libby says through the first nine months of this year, Infiniti delivered 89,973 vehicles, of which the G35/37 accounted for 57%. "They haven't been able to do that well with their other products," he adds, pointing out the Infiniti discontinued the Q45 sedan because volumes were low. "The fact is, it is hard to go upscale, to establish yourself in the luxury segment. Audi is having hard time, and Acura hasn't really been able to do it either," he says.

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