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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.

Q50 Eau Rouge to kick off series of performance Infinitis

Infiniti is desperate to position itself as a brand for performance enthusiast. It's tried to create that impression by attaching its name to the Red Bull Racing team, by sprucing up the G37 Coupe and G37 Convertible as part of its lack-luster Infiniti Performance Line, and by bringing Sebastian Vettel on board to create a special edition FX crossover. But the Japanese luxury brand knows it's going to need something more comprehensive if it's going to go up against BMW and its M models, Mercedes and its AMGs, or Audi and its Quattro GmbH-tuned RS range.
That's why the Q50 Eau Rouge concept unveiled just last week at the Detroit Auto Show was so important to the marque. But Infiniti has more in store than just a concept. Nissan desires to put the Q50 Eau Rouge - named after the notoriously challenging turn at the Spa Francorchamps circuit in Belgium - into production with a 500-horsepower engine. But in speaking to Automotive News, Infiniti chief Johan de Nysschen hinted at more good news to come.
That could include a performance version of a new flagship sedan Infiniti is said to be working on, positioned above the current Q70 to fill the void left by the discontinued Q45 that capped the brand's range before it shifted its entire naming scheme behind it. The flagship sedan would need some serious muscle to challenge the likes of the Mercedes S63 AMG and Audi S8, but Infiniti seems bent on getting there. To cap it all off, Infiniti has long been rumored to be working on a halo sports car. Whether they'll all carry the Eau Rouge name, the IPL badge or some sort of other designator remains to be seen, but we'll enjoy seeing this development progress.

Infiniti ESQ is a Chinese Nissan Juke Nismo

Take a Nissan Juke Nismo, replace all of its suede and Alcantara interior with leather and cross-stitching, replace all of its badging with the words "Infiniti ESQ," and boom! You've got a made-for-China crossover aimed at "the new millennials." Infiniti teased the coming of the ESQ last month, and today, we're treated to pictures taking it in from various toothsome angles.
Whippersnappers with anywhere from 200,000 yuan ($33,507 USD) to 300,000 yuan to spend will get the same 197 horsepower, 1.6-liter turbocharged four-cylinder, sport-tuned CVT and all-wheel drive that we know in the Juke Nismo. We haven't tracked down any other official information about it yet, but potential buyers will get their first look at it during the Chengdu Motor Show that opens later this month, where it will share market-specific notes with Infiniti Q50 L.