Nissan Puts The Brakes On Joint Infiniti-Daimler Luxury Compact Car

Industry News

There are two reasons why it's unlikely to happen.

Nissan has suspended the jointly developed compact luxury car project between its Infiniti luxury brand and Daimler. According to Automotive News Europe, a slowdown in the US market for luxury cars coupled with luxury SUV and crossover sales surging at the expense of sedans are the reasons for suspension. Why continue developing something when it may not ultimately be a strong seller? Nissan is adamant it’s still committed to working with the German automaker on future vehicles, although details are nonexistent at this time.

There was also another reason why Nissan put the brakes on the car: uncertainties in regards to tariffs. As negotiations continue to take place between the US and Europe, automakers are being left in an awkward position. In the case of Nissan and Daimler, that luxury compact car was slated to be built at a new plant in Mexico. Both automakers hold a 50-50 stake in the facility which is already building the popular Infiniti QX50 crossover, also built on a joint platform with Daimler. A Nissan spokesman declined to comment on this specific report, but reiterated the Nissan-Renault-Mitsubishi Alliance remains committed in its partnership with Daimler, the parent company of Mercedes-Benz.

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What are some future possible jointly developed vehicles? In light of the high demand for light trucks in the US and Europe, it’d make sense for the companies to shift attention to that segment. Remember, the Mercedes-Benz X-Class pickup truck is based on the Nissan Navarro mid-size truck sold overseas. Could a second, all-new pickup be in the works, this time for the US as well? Given today's market outlook, we wouldn't be surprised to learn that's indeed the case.

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