Infiniti Concept Vehicles Hint At Powerful New Direction

Forbes

5 hours ago

It's a time of both change and reckoning for Nissan's Motor Co.'s luxury brand Infiniti.
Faced with increased competition, lower sales and the effects of tariffs imposed on vehicles it imports to the U.S. from Japan, the brand is making moves to refine its product line and boost shopper consideration--moves that include the introduction of three concept models at next week's Pebble Beach Automotive Week near Monterey, California.
That's a lot on the plate of longtime Nissan executive Tiago Castro, who was elevated to vice president of Infiniti Americas just this past April, and who noted in an interview, new tariffs on imported vehicles and parts to the U.S. were announced on his second day on the job.
The three concept vehicles scheduled to make their debut on August 15 include the QX 65 Monograph. It's a two-row SUV based on a vehicle to be produced in the U.S starting next spring, employing Infiniti's Artistry in Motion design language, according to Castro. It's aimed at customers who might otherwise consider the Lexus RX series and similar competitors, he said.
Joining the QX 65 are two QX80 concepts meant to push the brand to extremes.
'Think about a vertical going all the way to track, speed, excitement, the other one another type of excitement, but it's over-laying off roading, so we can see which one resonates the best with this type of clients, and we can use a new fast to market approach to perhaps bring one to the market as well,' said Castro.
Such decisions on the fate of the concepts and indeed, the direction of the brand, won't be made in a vacuum.
The company will be holding what Castro termed all-retailer meetings on August 19 and 20 in Las Vegas of both Nissan and Infiniti dealers that will include Nissan Motor Co., Ltd. global CEO Ivan Espinosa.
'It's going to be a joint Infiniti and Nissan meeting where we can show the overall power of the corporation and the direction and, more importantly, the commitment to Infiniti-- the understanding that a strong Nissan requires a strong Infinity,' Castro said. 'I think that's an important statement for our dealer network, for our clients and for our employees, that we are fully committed.'
Infiniti is looking to re-ignite U.S. sales that were down 9% in the first half of the year, compared with the first six months of 2024.
Some of that decline is attributed to lower supply of the QX50 and QX55 which are built in Mexico. Production was 'paused' after import tariffs were imposed by Pres. Donald Trump, Castro explained.
Indeed, the tariffs are top of mind at Infiniti. While the QX 60 is built in the U.S. at the company's Smyrna, Tennessee plant, its other models are produced either in Mexico or Japan.
For the time being, sourcing of those vehicles being imported is not changing, Castro said, although 'there's always studies being done.'
Competitors such as General Motors Co. and Ford Motor Co. recently reported absorbing the tariff costs reduced their bottom lines by $1.1 billion and $800 million in the second quarter, respectively, rather than raise prices.
But Infiniti is dealing with the added financial burden through a combination of self-examination and programs aimed at improving profitability and boosting sales.
For one, the company is reviewing 82 different programs given to dealers aimed at helping them sell more vehicles.
'We are able to reduce some of those programs, get the cost of them and deploy to advertise and generate more demand, sell more vehicles as a result, make more money, and, in conclusion, deliver what we're working for,' explained Castro. 'So it's not just about good cost, it's about being more efficient and driving the right demand.'
In addition, Infiniti's Performance Plus program simplifies the way retailers are reimbursed, reducing the number of key performance indicators from 15 to just five, according to Castro.
Infiniti's Switch Up campaign was launched in July to help boost consumer consideration.
'This campaign provokes customers that are in shopping mode digitally to scratch their head and say, why not Infinity?' said Castro.
The early results are encouraging with digital traffic on the Infiniti website the highest ever last month, according to Castro.
He also noted sales of the QX 80 in the first half of the year were its best ever.
Just months into his leadership of Infiniti, Castro is feeling very optimistic about the brand's future, fired up by the more powerful direction hinted by the three concept vehicles to be unveiled next week, internal changes and aggressive consumer outreach.
Still, there's work to be done.
'So there's lots of opportunity,' Castro declares. 'It's about being efficient, finding our special area that we can play.'