Nissan’s Infiniti Takes on Europe
December 13, 2007

By Peter Nunn

TOKYO -- Infiniti was born in North America back in 1989. Next fall, a mere 19 years after its introduction, Infiniti will make another giant leap and launch in Europe.

What lies in store for Nissan's premier brand in the heartland of BMW, Mercedes, Jaguar and Audi? Speaking to media recently, Nissan chief Carlos Ghosn gave a fascinating vision of how he sees Infiniti being positioned.

"We are, first, not looking for a huge market share," confirmed Ghosn. "We are not starting Infiniti in Europe aiming to make volume. We want to have a very selective brand. We want to make sure that it is positioned on attractiveness and quality.

"For us, it's a relatively easy decision because the cars are about the same as the ones we are selling in the United States, China, Korea and Russia. The only big difference is that we are going to bring a lot of diesel engines on Infiniti."

So right there, a couple of surprises. Instead of trying to outsell BMW with the first spin of the dice, Infiniti is set to start out slowly, letting momentum and customer satisfaction ratings build.

The diesel connection is also obvious in Europe and one clear distinction from Lexus, which basically seems more interested in gas engines and hybrids, at least for now.

Nissan, however, doesn't have too many Infiniti class diesels up and running right now. But partner Renault does, while Nissan is also working on a completely new clean 3.0-liter class V6 diesel for 2010, which America will likely see first in the next Maxima.

Back with Infiniti, Ghosn's logic is surely not what many expected. "You know, our job here is not to hit the numbers, but to ensure profit and long-term sustainability of the brand, and customer satisfaction.   

"So if we remain with a tiny market share and profit, it's not a problem. What would be a problem is if Infiniti is not considered as one of the best brands in the world."

Infiniti has certainly come a long way since the start and over the past decade, as the model mix has improved and the Ghosn revolution has kicked in, Infiniti sales in the U.S. have soared from 55,967 units to 121,146 units last year.

The latest generation of cars is easily the best yet, and, at last, Infiniti is close to fulfilling its potential of being a Japanese BMW.

The G35 sedan and G37 coupe are more than worthy competitors for the 3 Series. The stylish new EX35 has the X3 in its sights. The FX35/45 target the X5 and the M sedan is Japan's very own 5 Series.

No wonder a BMW manager was quoted as saying the one brand Munich truly fears is Infiniti.

Even so, Infiniti will start out small in Europe, and the CEO reiterated the brand is not under volume pressure. "The pressure is mainly about making sure customer satisfaction is very high, and profitability is ensured.

"But frankly, when we take a look at the demand that's taking place in Europe for these types of cars, you know, profitability should not be a big challenge. But I think we need to make sure that the quality is there.

"So for us, Europe is not going to make or break us. Europe is an opportunity to grow Infiniti and to establish a base to attract customers with quality and products that are very good." 

Tellingly, Nissan is not anywhere near a decision on launching Infiniti in Japan. But in Europe, where sporty rear-drive cars with cool design go over especially well, Infiniti, starting out with a complete clean sheet, has it all to play for.

Photos by Nissan
1 – Carlos Ghosn introduces the Infiniti G at the New York auto show.

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