Infiniti takes on the big players

Although in Infiniti's case, of course, there is more than one giant to contend with. Audi, BMW and Mercedes have long dominated the premium market and for the best part of two decades Lexus has painstakingly carved out a niche for itself as an alternative to the German trio. Lexus' progress has been greatly helped in recent years by its pre-eminence in the hybrid segment and all the leading prestige brands are increasingly reliant on diesel sales in both the UK and continental Europe. Infiniti, however, will start its campaign with a line-up of powerful petrol-powered models with an “all new” V6 diesel not following until the end of the decade. James Wright, vice-president of Infiniti Europe, said the brand would launch with a four model range. The new V6 G saloon and coupe will compete against the BMW 3 series, Mercedes C-class and Audi A4 and A5. The all new EX crossover, which appeared in concept form at the New York Motor Show, will rival the Lexus RX350 and BMW X3 and the replacement for the current FX will be sold in both V6 and V8 versions as an alternative to models such as the BMW X5, Porsche Cayenne, Range Rover Sport and VW Touareg. Petrol power An Infiniti spokesman defended the brand's initial dependence on petrol engines and claimed there was scope for other powertrains. “Infinitis are performance-oriented machines so powerful petrol engines are an inherent part of the brand. The petrol engines used in the initial range will include innovative new technology called Variable Valve Event and Lift, which gives lower emissions and higher fuel efficiency,” He said demand for petrol cars remained strong in Europe, particularly in the coupe and sports crossover sectors in which Infiniti will compete. But he added: “The lack of diesel in markets where they are popular has been taken into account. The V6 diesel is being engineered to compete with the best and will have a sporty feel true to our brand.” He said the V6 unit would deliver greater environmental benefits than a hybrid, given the typical high mileage usage of a luxury sporting car, but claimed the brand had the capability to introduce a hybrid electric vehicle in the future if the demand was there. Wright said Infiniti's experience in the US retail market would help it to get established in Europe and the showroom standards introduced in the US would cross the Atlantic as would the brand's customer service schemes. “Our dealers will be adopting the new Infiniti Retail Environment Design Initiative which is currently being rolled out across the US,” he said. “The Total Ownership Experience, which was born in the US, is a vital part of Infiniti's brand proposition.” According to Jato Dynamics, Infiniti sold 121,145 cars in the US last year, down from 136,400 in 2005 but a 55 per cent increase on sales in 2000. It also sold 729 cars in its 2006 launch year in Russia. Going it alone Wright explained why Infiniti had eschewed the chance to share dealerships with its parent company. “We have drawn from the experience of other premium brands and believe separation from Nissan is vital to Infiniti's success. The cars compete in a different arena and we are aiming at a very different customer,” he said. He said the brand would be represented in “all the main sales areas of the UK” but would not reveal how many sites were planned. Wright said the level of investment required by dealers would be “commensurate with that of other premium brands”. He added that experience in retailing luxury cars was vital. Infiniti will run no factory-owned sites in Europe but intends to sell its cars in each market through a partnership with a franchised dealer – possibly similar to Cadillac's exclusive arrangement with Pendragon in the UK. The Brand's European HQ in Switzerland will oversee the sales operation and Nissan's infrastructure will be used to ship in cars, parts and accessories. As well as the UK, Infiniti plans to launch in Germany, Italy, Spain and France in 2008 and to roll out to 20 markets in all within three years. Wright said the UK and Germany would be the brand's biggest European markets. He would not predict sales targets but said the aim was to establish Infiniti as a credible premium brand “in the short term”.

Building awareness is key to success Steve Settle, Lexus GB director, does not believe Infiniti will pose an “immediate threat” to the established prestige brands. “We're 17 years old and it takes a long time to establish a brand,” he said. Settle said awareness of a brand could only be built up through having cars on the road and added that it was vital for the carmaker to convince its dealer network to support the product. “The premium market in the UK already accounts for 20 per cent of the total so it will be difficult to establish another brand,” he said. But James Wright, vice-president of Infiniti Europe, was confident the brand would make its mark. “Early reaction to the product suggests we will succeed,” he said. “Infiniti will shake up the establishment.”