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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.

Infiniti gets boiled down to four P's: Performance, passion, precision, provocation

So then we asked, "Well, what does that mean?"
We met Andreas Sigl, the global director of Infiniti's Formula One involvement (that's him above on the right), at the US Grand Prix in Austin last year, and our questions to him were aimed at understanding what Infiniti was doing and where it intended to go. In spite of regard for its products and increased sales, few outside - and even inside - Infiniti seemed to have a clear idea of what the brand stood for.

2017 Infiniti Q30 First Drive

Audi and BMW have owned the premium C-segment for almost a decade now thanks to the A3 and the 1 Series (and 2 Series). Benz's A-Class has become less of a retiree's option and has spawned a popular (if not particularly good) sedan (the CLA) and a crossover (GLA). Down in the lower-class decks, machinery from Subaru is punching well above its weight, while Volkswagen's Golf owns the market in Europe. This all left perennial premium pretenders like Lexus and Infiniti with a problem: how to convince buyers their C-segment machinery was genuinely premium if they were based off a volume-selling donor body from Toyota or Nissan? Mercedes-Benz opened an odd window of opportunity for Infiniti. See, Benz's parent, Daimler, and Infiniti's motherships, Renault and Nissan, have had a technical alliance since 2010. A big technical alliance. So Infiniti was able to develop its hatch to sit atop the A-Class chassis, powertrain, and suspension architecture, though you'd barely know it by looking at the Infiniti from the outside. It has a style all its own, and you're not going to mistake a single angle on the Q30 for anything that comes out of Stuttgart. Nobody makes deeper cuts and curves into its metal than Infiniti. The Japanese brand claims that design is at its core, and whether you love or hate that design, it's hard to argue that point. The Q30 feels like a nicer, easier, more luxurious place than the A-Class on which its based. "Infiniti design is very three-dimensional on every panel. We want to give the sense and the feeling that every Infiniti has been made by an artisan, by hand, not by computer," the company's London-based design boss, Simon Cox, argued. Some will love it, some will hate it, and Infiniti can live with it either way. The point is that the brand is now on the field in a segment that is projected to keep growing at more than 9.4 percent globally, and it got there at a fraction of the normal cost of an all-new car, without having any easily identifiable cap tips to the Benz's far more conservative exterior design. The Benz bits are more obvious inside. Infiniti did such a good job of grafting its design ideas onto the interior hard points that it feels like a nicer, easier, more luxurious place than the A-Class, even if the Benz will be between eight and 10 percent more expensive in most markets. The dash top is clean, swooping, and stitched together beautifully.