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How Lexus, Infiniti plan to win back luxury buyers from Germans, Tesla

DETROIT — Japanese luxury auto brands Lexus and Infiniti have used the Detroit Auto Show to test new ways to regain momentum against Germany's prestige automakers and Tesla. The Japanese are fighting to gain ground in the U.S. luxury market as Audi and Mercedes-Benz have expanded sales and Tesla has provided a fresh alternative to established brands. Last year, Lexus suffered a 7.6 percent slide in U.S. sales. Acura's 2017 sales fell 3.9 percent from 2016. Infiniti pushed up sales by 11.3 percent — but by selling almost twice as many sport utility vehicles as cars. However, Infiniti's total 2017 sales of 153,415 vehicles put it behind the leading Germany luxury car brands, as well as Acura, Lexus and Cadillac. The Lexus LF-1 Limitless concept SUV model, with its futuristic looks and "Chauffeur mode" semi-autonomous hands-off driving capabilities, signals that Toyota's luxury brand may start to focus more on SUVs than traditional large sedans. The LF-1 also previews a futuristic navigation technology that anticipates where the driver is going based on driving habits and history, and provides hotel recommendations or other concierge services. View 13 Photos "We don't want to be the 'race car' brand; we don't want to be the 'quiet ride' brand. We want to be the brand which is emotionally connected with the customer," said Cooper Ericksen, vice president of U.S. marketing for Lexus. Lexus, Infiniti and Acura launched in the U.S. market in the late 1980s and took advantage of quality problems at Audi and a lack of innovation at the then-leading luxury brands, Cadillac and Lincoln. Now, the structure of the U.S. luxury market has changed. Four brands — Mercedes, BMW, Audi and Lexus — dominate. Tesla delivered 103,000 vehicles in 2017, its best year ever, though that total is still a small fraction of the overall luxury market. Tesla, meanwhile, is trying to overcome "production hell" and increase output of its more affordable compact Model 3 sedan. The highly anticipated car is just starting to reach customers — but with 400,000 preorders, 2018 could be a breakthrough year for Tesla. View 19 Photos In Detroit, Infiniti showed the Q Inspiration Concept sedan powered by a unique, high-efficiency variable-compression gasoline engine. While the prototype is not electric, its exterior might appeal to customers of the Tesla Model S.

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.

Red Bull keeps 2015 RB11 F1 challenger under wraps [UPDATE]

UPDATE: A previous version of this post suggested that Daniil Kvyat drove for Red Bull last year, when he actually drove for its affiliate team Toro Rosso. The text below has been updated with the correct information. This season will be one of new beginnings for Red Bull Racing. It's the first time in three years that it's not returning to the Formula One grid as defending champions, and without a world champion at the helm. But return it will to fight to regain its title, and this is the car with which it intends to do so. Revealed ahead of the season's first test session in Jerez this weekend, the new RB11 is wearing a bold camouflage "testing livery" of the type we're more accustomed to seeing on road-going prototype than on a racing car. Expect it to be replaced by the familiar blue, red and yellow by the time the season kicks off in Melbourne next month. Though the camouflage may keep certain aero developments disguised (if not altogether hidden) from the prying eyes of its rivals, the sloping nose mandated by the new regulations is plain to see. Otherwise the new RB11 is likely more of an evolution rather than a revolutionary clean-sheet redesign over the RB10 that returning hot-shoe Daniel Ricciardo drove last year, to be joined this season by Daniil Kvyat, who's been promoted from Toro Rosso to replace departing four-time champion Sebastian Vettel. Whether they can succeed, however, will largely depend on the engine. Red Bull has emerged as the primary partner for engine supplier Renault (sister company to the team's title sponsor Infiniti). In fact, after Lotus switched to Mercedes (and assuming Caterham doesn't make it back to the grid), Red Bull and its sister team Toro Rosso will be the only teams running Renault engines this season. The team says it has worked closer than ever with the French automaker to develop the Renault power unit, but chances are slim that they'll be able to catch up to Mercedes given the restrictions on engine development. If anyone can catch the Silver Arrows, though, it'll surely be Red Bull – the only other team to win a grand prix last season. THE RB11 REVEALED After an intensely busy off-season, Infiniti Red Bull's Racing's 2015 Formula One car, the RB11, has hit the track and begun testing at the Circuito de Jerez in Spain ahead of the new season.