ABP-CL9-TSX

LOS ANGELES -- Infiniti faces a challenge: boosting sales of vehicles at $40,000 and above, says Mark Igo, vice president of Infiniti Division.

The problem will become critical next spring when Infiniti starts selling the redesigned M cars. A company committee is huddling with makers of other luxury products, such as Chanel, to help solve the problem.

"The M is the (G35's) big brother," Igo says. "We have to resonate what Infiniti is all about. A lot of it is in the messaging. Most of the marketing focus will be on the M. You will see our best work. We want to find what we mean to our customers."

Through the first nine months, the G35 accounted for 55.4 percent of Infiniti's total U.S. sales of 96,180. The G's prices range from the upper $20,000s to the lower $30,000s.

U.S. sales of Infiniti sedans with a $40,000-plus price tag - the M45 and Q45 - were only 1,698 and 1,531, respectively, during the same period.

"Infiniti really changed with the G and the FX SUV," Igo says. "They brought in a younger, more affluent buyer. They wanted more power. So now we're in a position of: What do we do next? How do you keep people loyal to the brand?"

Nissan Motor Co. has formed a committee, of which Igo is a member, to determine what the next step should be for the Infiniti marque.

Patrick Pelata, Nissan Motor executive vice president for product planning and strategy, says the committee has met with top executives of high-end brands such as Louis Vuitton, Prada and Chanel to understand how those companies get their messages across.

Igo says the most pressing issue is how to position the redesigned 2006 M model when it arrives in U.S. showrooms next spring.

Igo says he has been charged with selling about 20,000 units annually. The vehicle will be priced between $40,000 and $50,000, he says.

Igo did not elaborate on marketing plans, but he said they would be more expansive than TV commercials. "It will be much more interactive" with things like ride-and-drives and sponsorships, he says.

John Capps, chairman of the Infiniti Dealer Advisory Board, says the current M sells only with huge incentives.

"By definition you must be able to sell vehicles above $40,000, or you're not a true luxury marque," says Capps, owner of Plaza Infiniti in St. Louis. "Infiniti has never been able to do that. So we look at the M as being all incremental business."

Source:
http://www.autoweek.com/news.cms?newsId=100963

fastg11

Looks like someone messed up. The G retails for low 30s to high 30s.

The M looks nice but cars like the M and RL are just too heavy IMO. They're fat asses.

biker

Too match the typical American.

Seriously, just like the G, as long as the execution (and price) is right the sales will come. Putting an unrealistic MSRP on the window won't help matters. And don't expect things to happen overnight. Do like Acura did with the TSX - hook everyone on the car with the right blend of features and price and then start to rachet up the price (AT buyers in 05).

Godwhacker

Glad to hear it...Infiniti's one big glaring hole, in my opinoin, has been their interior design. WAY too much plastic for the price. Esp. for cars that are that expensive, most buyers who can afford that much car are older and interior really matters to them (although, hell, Im not that old and interior matters alot to me, too...after all, thats where I spend 3hrs/day!).

biker

I think they have that issue solved with their new M (heck they even put in real aluminum into the 05 G35).
The issue is, like VW found out with their Phateon or Audi with their A8, details start to matter less at these prices - the badge on the front matters more. Based on early orders Acura may have found a way around this issue with the new RL. We'll have to wait to see how Infiniti fares.

1SICKLEX

I hope ALL Infiniti lovers read this, from a DEALERSHIP OWNER himself. When I say it, I'm a troll though.....
Well, good luck to Infiniti. But it's not like the competition is resting on it's laurels.

titan

^ Yes the are. The competiton is resting on it's laures... with the exception of the Rl. The new 5-Series' 3.0 V6 now has one of the lowest hp's in the class. The E-Class is just getting the more powerful 3.5L V6. Lexus had a golden opportunity with the GS, but they really haven't broken any ground (the ineterior's very nice). Audi's A6 is evolutionary... though atleast a little bolder. The RL, M, and STS are the cars with something to prove. And I'm impressed with them all. I saw an STS the other day and was blown away. That thing is fuckin tight.

biker

The only problem with the STS is its size - it's a full size car compared to the rest which are all mid-sized.

heyitsme

I think most people would like that, getting more car for the money.

heyitsme

Infiniti has never really had that large of a 40k plus lineup in previous years. Now they have the fx selling, the qx selling, and its fair to say this new m will sell.