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Infiniti is pulling out of Western Europe, cutting models

BEIJING — Nissan's premium brand Infiniti has announced it will exit Western Europe early next year, as it restructures its global operations and focuses on the world's top two auto markets. Infiniti said it will discontinue the Q30 sedan and the QX30 sport-utility vehicle and cease their production by the middle of 2019 at Nissan's manufacturing factory in Sunderland, England. Both models are sold globally but produced only in Britain. The QX30 is sold in the United States. The move comes as Infiniti seeks to divert its resources to markets with bigger opportunities, such as China and the United States, from a region where non-European premium brands are struggling to compete against local players such as Audi, BMW and Mercedes-Benz. Nissan also recently scrapped plans to build its new X-Trail SUV in Britain amid the uncertainty surrounding Brexit, saying it had taken the decision to optimize its investments by building the next generation model in Japan. "Western Europe remains the most challenging and competitive region for premium cars," Infiniti's chief spokesman, Trevor Hale, told Reuters. Infiniti's sales in western Europe almost halved last year to 5,800 vehicles. In addition to the tough competition, the Japanese premium brand, headquartered in Hong Kong since 2012, has struggled to effectively meet emissions and other regulatory requirements in the region, Hale said, referring to stringent Euro 6 emissions requirements and other regulatory challenges. "The commercial reality for Infiniti in Western Europe is that there is simply no visibility of a viable and sustainable business, especially given the regulatory challenges," he said. Infiniti said an exit from Western Europe will allow it to focus on its initiative to electrify a good portion of its product portfolio from 2021 and discontinue diesel offerings. The brand plans to focus more on its SUV lineup in North America, bring five new or significantly-redesigned vehicles to China over the next five years, improve quality of sales and residual value and realize more synergies with Nissan. "This is all part of Infiniti's vision to become a top challenger brand in the premium segment," it said. As it prepares to withdraw from Western Europe, Infiniti said it is working to find alternative opportunities for employees who would be affected, consulting with employee representatives where necessary and identifying opportunities for transition and training support where appropriate.

New details emerge on Inifiniti QX50’s unique new variable-compression engine

Infiniti will release the world's first production variable-compression engine when it releases the 2019 QX50 midsize SUV sometime next year. Now we have some new details on the innovative new engine, which Infiniti is calling VC-T, for Variable Compression Turbo, after the luxury brand offered a prototype test drive. We wrote extensively about the complicated technology underpinning the new engine last year. It's the latest novel development that could represent a range-extender, if you will, for the embattled internal combustion engine in an era when automakers and governments are shifting their focus to electric vehicles. The VC-T is a new inline-four, 2.0-liter that combines the power of a high-performance turbo gasoline engine with the torque and efficiency of an advanced diesel engine, but without the latter's notorious emissions. It features the ability to seamlessly raise or lower the stroke of the pistons in the combustion chamber, depending on the driving conditions it detects and inputs from the driver, to select the best compression ratio—anywhere between 8:1, typical for high-performance engines, and 14:1 for high efficiency. In essence, it delivers the performance of a V6 but is much more efficient, with improved fuel efficiency of between 10 to 15 percent with its best competitors, per Car and Driver. You can view how it works in motion via the video below. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. It's also quieter, more lightweight and compact than V6 engines with comparable power outputs, estimated at 268 horsepower and 288 pound-feet of torque. In a prototype test drive, Car and Driver writes that the engine "felt very conventional" and responsive, with strong and smooth acceleration. "The only indication you have that the compression ratio is changing is from an indicator in the instrument cluster next to the boost gauge." The engine is expected to deliver fuel economy gains of 27 percent in combined city-highway EPA rating over the outgoing QX50, which had a 3.7-liter V6. The 2019 model, fitted with the VC-T, should get about 26 mpg in combined fuel economy, and it will get to 60 mph almost one second faster than its four-cylinder counterparts, Nissan's chief powertrain engineer, Shinichi Kiga, told Automotive News. The VC-T engine is the result of 20 years of development spanning more than 100 prototypes and around 300 patents at Nissan.

Major automakers post mixed US June sales figures

General Motors, Ford and Fiat Chrysler Automobiles NV posted declines in US new vehicle sales for June on Monday, while major Japanese automakers reported stronger figures. Once again, demand for pickup trucks and crossovers offset a decline in sedan sales. Automakers' shares rose as overall industry sales still came in above Wall Street expectations. The US auto industry is bracing for a downturn after hitting a record 17.55 million new vehicles sold in 2016. Analysts had predicted that overall, US vehicle sales would fall in June for the fourth consecutive month. As the market has shown signs of cooling, automakers have hiked discounts and loosened lending terms. Car shopping website Edmunds said on Monday the average length of a car loan reached an all-time high of 69.3 months in June. "It's financially risky, leaving borrowers exposed to being upside down on their vehicles for a large chunk of their loans," said Jessica Caldwell, Edmunds' executive director of industry analysis. GM said its sales fell about 5 percent versus June 2016, but that the industry would see stronger sales in the second half of 2017 versus the first half. "Under the current economic conditions, we anticipate US retail vehicle sales will remain strong for the foreseeable future." GM shares were up 2.4 percent in morning trading, while Ford rose 3.3 percent and FCA shares jumped 6 percent. "US total sales are moderating due to an industry-wide pullback in daily rental sales, but key US economic fundamentals clearly remain positive," said GM chief economist Mustafa Mohatarem. "Under the current economic conditions, we anticipate US retail vehicle sales will remain strong for the foreseeable future." Ford said its sales for June were hit by lower fleet sales to rental agencies, businesses, and government entities, which fell 13.9 percent, while sales to consumers were flat. But it sold a record 406,464 SUVs in the first half of the year, with Explorer sales increasing 23 percent in June. And sales of the F-150 had their strongest June since 2001. On a media call, Ford executives said an initial read of automakers' sales figures indicated a seasonally adjusted annualized rate of around 17 million new vehicles for the month, which would be better than 16.6 million units analysts had predicted. FCA said June sales decreased 7 percent versus the same month a year earlier.