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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.

Infiniti Q50S getting G37's hydraulic steering for 2016

Sometimes, new technology doesn't make things better. Take the march of power steering technology as an example. Electrically assisted systems are in vogue at the moment for their ability to increase fuel efficiency, but tuning them to offer good feedback remains something of a dark art. Some automakers get it, but most don't. The previous hydraulically assisted setups just seem to be inherently more communicative when driven with enthusiasm. And it looks like Infiniti might be learning this lesson the hard way.
In talking with Keith St. Clair, the luxury brand's head of product planning, Car and Driver has learned that the Q50S is probably going to ditch its standard electrically assisted steering in favor of a hydraulic system derived from the old G37, a model soon to be renamed the Q40. The system should make the sedan more engaging behind the wheel, but it still won't help those who tick the option box for Infiniti's controversial Direct Adaptive Steering drive-by-wire system.
According to St. Clair, Infiniti's engineers have heard the complaints of critics and previous G37 owners about the Q50S model's electric steering system, and wanted to see what they could do. They didn't have to go far to figure it out - all it required was taking the steering rack off of a G37 and putting it onto the Q50S. After a little tweaking, "the car is a blast to drive," St. Clair reports. Now, the company is said to be fast-tracking the switch, and it could be ready for the 2016 model year.

Infiniti confirms new "premium compact" to be built in UK

Aside from certain naming-related news, Infiniti has actually had some decent product news to announce this week. The company's president, Johan de Nysschen, alluded to a new 550-horsepower performance sedan, and now the automaker has confirmed that a new "premium compact" will go into production in 2015. Based on the fact that this new model will be built alongside the Nissan Leaf at the automaker's Sunderland, UK assembly plant, we could only hope that it's a production version of the LE Concept (shown above).
Sunderland already produces Nissan products like the Qashqai, Juke and Note, and as a part of an investment of 250 million British pounds (around $406 million USD) for the new model, the plant would add an extra 280 jobs with the capacity to build 60,000 of the new Infinitis annually. Adding the premium compact at Sunderland means that Infiniti will have to change its plans for another new model, a bigger "C-segment hatchback," which could very well be a production version of the Etherea Concept.