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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 Q50 Eau Rouge to cost over $100,000?

Enthusiasts have been clamoring for Infiniti to build a car like the Q50 Eau Rouge for years. In concept form, it employs the GT-R's much-loved 3.8-liter twin-turbo V6, tuned to produce 560 horsepower and 442 pound-feet of torque, with the whole works slid underneath fetching luxury sedan bodywork with carbon fiber aero aids. At this point, the model is rumored to be all but certain for production. The company recently even put Sebastian Vettel in one to show it off. However, Infiniti President Johan de Nysschen is suggesting that the model's lifetime could be brief, limited and rather expensive.
The Infiniti boss recently gave a long interview to Motor Trend that spilled a lot of beans about the Eau Rouge. While he refused to officially admit that the super sedan was on the way, he admits that he's "pushing the Eau Rouge concept for commercialization."
According to de Nysschen, if built, the production version will hew closely to the concept with the engine from the GT-R, but the seven-speed automatic transmission and all-wheel drive system will come from the Q70. And while that would make the Eau Rouge a performance powerhouse, it might also be a rarity on the road:

Infiniti Q50 Eau Rouge racing toward Detroit with Red Bull in its veins

There are several ways an automaker can get into Formula One racing. It can start its own team from scratch (like Toyota did in 2002), it can buy an existing team (like BMW did with Sauber in 2005) or it can supply engines to other teams (as so many manufacturers have done over the years). Infiniti chose another direction and opted to sponsor the world-champion Red Bull Racing team.
Infiniti has undoubtedly poured millions into its partnership with Red Bull since it started in 2011, but aside from the Sebastian Vettel edition FX (which technically emerged from the company's sponsorship of the driver as separate from the team), the tie-in has yet to translate into a Red Bull-tuned (or at least -inspired) Infiniti for the road. But that's just what Nissan's premium brand has in store for us at the upcoming Detroit Auto Show in January.
Well, almost, because the concept just announced is still a step or two away from reaching your local Infiniti dealership, but here it is just the same. It's called the Q50 Eau Rouge, and it's based on the company's latest tech-laden sports sedan. It takes its name, of course, from the famous uphill section of the Spa-Francorchamps circuit where Sebastian Vettel won the Belgian Grand Prix earlier this year, but Infiniti isn't telling us much more than that.