Infiniti evolves into a player in the luxury market

Tony Whitney
Vancouver Sun


Friday, November 04, 2005

It doesn't seem like 15 years since Nissan launched the very first product from its Infiniti division. Infiniti was formed as an upscale vehicle segment of Nissan, just as Acura and Lexus service the premium market for Honda and Toyota respectively.

Initially, the three luxury divisions were not without their critics, some of whom were quite bluntly saying that one or two of the trio would never make it. In time, they've been proven wrong and all three divisions seem to be flourishing -- though Infiniti did struggle initially.

Clearly, the move worked out well for Infiniti, Acura and Lexus. It was no easy task launching a brand new nameplate on an unsuspecting public. After all, some automakers have challenges marketing even long-lived brands and more than a couple have fallen by the wayside in recent years. But in the case of Infiniti, Acura and Lexus, perseverance paid off and few people nowadays query their reason for being. All three have established solid reputations among upscale buyers and a combination of product quality and service excellence has ensured that any doubts about their future have long been laid aside.

Interestingly. Mazda once contemplated the idea of a spin-off luxury brand and even put out press releases complete with logos and conceptualizations of dramatic-looking vehicles. Ultimately, the project was shelved and Mazda went on to create all kinds of vehicles that many would consider "luxurious" without a special badge to distinguish them.

Of course, the reason the Japanese "Big Three" went to luxury nameplates was fairly simple. The Japanese auto industry -- as far as North America goes -- was always focused on quality and durability at a reasonable price. Even though many Japanese automakers started producing some very lavishly equipped vehicles and quality got even better, they believed that the market basically looked at nameplates like Toyota, Nissan and Honda with economy in mind, rather than luxury. As a result, the three aforementioned premium brands were born.

In the case of Honda and Nissan, Acura and Infiniti respectively were aimed solely at the North American market while Lexus was offered in several countries around the world. Often, products from the luxury trio have only been marketed in North America and in some cases, the same car we get here has appeared in other markets with the maker's "original" nameplate. For example, Acura NSX sports cars were always Honda NSXs in Europe. But success in North America sometimes changes automaker attitudes to international sales, as we'll see later.

Back in 1990, I remember driving an early production Infiniti Q45 in Japan just before the vehicle was launched and being amazed by its refinement, V-8 power and luxurious appointments. Here at last was a large Japanese sedan to rival the products of Mercedes-Benz, Audi, BMW, Cadillac and Lincoln. I seem to remember that the only criticism most auto scribes were able to come up with was the Q45's big nose-mounted metal badge which looked, to some eyes, like a rodeo cowboy's belt buckle. The badge was later replaced with something a little more subtle and the logo has now earned the respect of a very discerning market.

At the start, Infiniti offered just two products -- the Q45 and a small sports sedan, the G20 -- which was based on an existing Nissan product and preened to be positioned in the entry-level luxury segment. As time went by, the range grew as SUVs of various sizes and more sedans and coupes were added.

Infiniti was perhaps a little slower than Lexus and Acura in gaining public acceptance and it was the QX4 mid-sized SUV that played a role in giving the company its first major market boost. Since then, Infiniti products have won wide critical acclaim, have earned all kinds of "best of" awards and are now common sights on our streets.

Infiniti started with just 12 dealers across Canada and some of them were pretty bold to take on an unknown nameplate -- even if it did have the might of Nissan behind it. Few can be regretting the move now, as the division has evolved into something of a world leader in automotive design and execution -- widely admired for its products whether they be sedans, coupes or SUVs.

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Tony Whitney is an award-winning auto journalist and host of the popular TV show Driver's Seat. He writes here on behalf of the The New Car Dealers Association of BC. He can be reached via e-mail at awhitney@telus.net

© The Vancouver Sun 2005