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Weekly Recap: New bosses try to jump-start Cadillac and Lincoln

Both of America's domestic luxury brands seem to be stuck in neutral.
It's ironic that Cadillac and Lincoln got new bosses within days of each other this month. It's also a commentary on the fact both of America's domestic luxury brands seem to be stuck in neutral.

Nissan recovery to focus on U.S., Japan, China markets

Nissan will pull back from Europe and elsewhere to focus on the United States, China and Japan under a plan that represents a new strategic direction for the embattled carmaker, people with direct knowledge of the plan told Reuters. The "operational performance plan" is due to be announced on May 28 and goes beyond fixing problems from ousted leader Carlos Ghosn's aggressive expansion drive, the people said. The company's struggles predate the current global economic shutdown. Nissan's 2019 sales slumped severely.  Nissan was already planning to implement what was described as a "do or die" plan in January, before the global coronavirus pandemic froze automotive production and sales worldwide.  Pursuit of market share, particularly in the United States, led to steep discounting and a cheapened brand. Under the new, three-year plan — reported here for the first time — Nissan aims to restore dealer ties and refresh lineups to regain pricing power and profitability, the people told Reuters. "This is not just a cost-cutting plan. We're rationalizing operations, reprioritizing and refocusing our business to plant seeds for the future," one of the people said. The plan also aims to cut competition and expand cooperation with alliance partners, the people said. Nissan will follow Mitsubishi in plug-in electric hybrid vehicle technology, with the smaller peer taking the lead in Asian markets outside China and Japan. France's Renault will likely focus on electrical vehicle technologies and Europe. Nissan and Mitsubishi declined to comment. Renault did not immediately respond to a request for comment. The plan, led mainly by Chief Operating Officer Ashwani Gupta rather than Nissan's low-key chief executive, Makoto Uchida, is aimed at freeing resources to invest in products and technology for the United States, China and Japan, the people said. "The net effect is even though we reduce our R&D spend this year versus last year and make other savings, we pump those freed-up resources back into core markets and core products," said one of the people, who declined to be identified as they were not authorized to speak with media on the matter. The plan is likely to take up to two weeks to be finalized, with sales and earnings targets complicated by the anticipated long-term impact on auto sales of government measures worldwide taken to stop the coronavirus outbreak, the people said.

Infiniti QX80 to spearhead new direction for Nissan's luxury brand

Infiniti has had a tumultuous time in the last few years. However, a new plan is under way to revive Nissan's luxury marque, and to give it some much-needed direction. Now, Infiniti chairman Peyman Kargar has detailed his plans for the first time, and revealed that the QX80 will be at the vanguard of this new push. Left to languish under former Nissan CEO Carlos Ghosn's quest for market share at the cost of all else, Infiniti's lineup failed to receive the necessary updates in several hotly contested segments. In a time when the luxury brands have seen record profits, Infiniti has instead seen its sales plummet. In 2018 the brand was among the first to announce a date by which it would "go electric." That was taken by many to mean solely electric or hybrid vehicles after 2021, but that time has come and gone. Infiniti missed its own deadline for a first EV model last year, and sales have nosedived by more than 50 percent since 2019 (117,708 in U.S. sales in 2019, versus 58,553 in 2021). Part of that is due to the  pandemic and resulting semiconductor shortage that's plagued the entire industry, but there's no doubt that the brand is seldom uttered in the same breath as Mercedes, BMW, Lexus or Audi. Speaking with Automotive News, Kargar outlined a three-phase plan to get Infiniti back on its feet. The first phase, focusing on restructuring and recovery, was just completed in March. Infiniti has now turned record profits globally, Kargar said.  Phase two has now begun and will play out through March 2026. By this time next year, designers will have locked in a new corporate face to take over on all new models. Leading the charge with that identity will be a new QX80 that arrives in late 2023 or early 2024.  Kargar didn't disclose details, but called it the future flagship of the marque. It will have enhanced performance specs to distance itself from the Nissan Armada on which it is based. Infiniti hopes that the QX will be seen as a competitor against the likes of the Cadillac Escalade Lexus LX, and Range Rover. Despite riding on the same platform as the Patrol — a Land Cruiser-like body-on-frame SUV — since 2010, the QX has not fallen in sales as much as other models. Part of the rebranding also includes a unification of Infiniti's identity. Kargar spoke of a new dealership look and feel, which includes a "brand scent" for showrooms and a "sound signature" that will tie in apps, websites, and call centers.