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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.

NHTSA opens investigation into Nissan's handling of airbag recall

In March of 2014, Nissan recalled eight models among its Nissan and Infiniti brands, totaling more than one million vehicles, over faulty occupant classification system software controlling the passenger airbag. The company discovered a variety of factors that would interfere with the system's ability to detect an adult passenger in the shotgun seat, resulting in an illuminated warning on on the dashboard and the passenger airbag not deploying in an accident. Yet 124 complaints submitted to the National Highway Traffic Safety Administration since the recall allege that the dealer-installed fix hasn't actually fixed the problem; some consumers say the problem persists after multiple trips to the dealer. The Detroit News reports that NHTSA is opening an investigation into the matter to determine whether a new recall is needed. The occupant sensor has been a bugbear for Nissan over the past couple of years; a much smaller recall for the issue in 2013 covered five of the eight vehicles that were recalled in 2014, and that earlier recall also continued to generate complaints after the issue had supposedly been fixed. At the same time, the company learned that in two instances there was another twist, where the dashboard warning wasn't illuminated but the passenger airbag still didn't go off in an accident. Nissan isn't alone, though, with airbag recalls on a steep upswing across the industry even before the Takata debacle.

Infiniti sees a bright future for the luxury sedan

One of the four new models that Infiniti will release in the coming years is an electric sedan previewed by the Vision Qe concept. Investing in a body style that many of the brand's peers and rivals are pivoting away from might sound odd, but executives at Infiniti still see a demand for sedans. "For the U.S. market, the sedan segment is still a very relevant segment. We have a ton of history, and heritage, and hugely passionate fans. So with that kind of passion, we're always getting asks for that kind of piece," Bob Welby, Infiniti's senior director of operations, told Motor1. The publication cited older, Nissan Z-derived sedans like the G35 and the G37 as models that could inspire Infiniti as it brings its first electric sedan to the market. These cars were aimed squarely at European sport sedans like the BMW 3 Series, and they put a much bigger focus on performance than on comfort while remaining pegged on the luxury side of the spectrum. They enjoy a relatively loyal following in 2023. Later known as the Q40, the G37 retired at the end of the 2015 model year and passed the torch to the Q50, which remains in production today but has nearly reached the end of its life cycle. When it retires, it will leave the Nissan-owned brand without a sedan in its range for the first time since its inception: The bigger Q70 retired at the end of the 2019 model year and the full-size Q45 was axed after 2006. In contrast, the current Infiniti lineup includes four SUVs. This focus on high-riding models won't change, even if the sedan sticks around. "SUVs have become another emerging strength of ours over the past decade," Welby said. "That's absolutely going to be part of our story." The next-generation QX80 is notably around the corner. Infiniti previewed it with a close-to-production concept called QX Monograph.   Green Infiniti Electric Sedan