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Infiniti Backs Out of Plan to have Magna Steyr Build its Mercedes-Benz-Based Compact Model

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In May this year, the Nissan group announced that it had come to an agreement and signed a memorandum of understanding (MoU) with auto manufacturer Magna Steyr for the assembly of a new, Mercedes-Benz-based, Infiniti compact model in Austria.

Well, this is not going to happen as on Friday, the Japanese automaker issued a statement saying that, even though Infiniti is moving ahead with plans to develop the compact model with a scheduled launch in 2015 (and not in 2014, as originally stated), it won't be built by Magna Steyr, but instead, it will produce the car itself.

"Infiniti ended the feasibility study this week and has decided to produce the vehicle in-house in a European production facility as part of the brand's overall expansion production plans. All design, engineering and development work continues on schedule," the automaker said in a statement.

Infiniti added that the compact model will be manufactured at an as-of-yet, undisclosed European assembly plant, with the location and more product details to be announced closer to the start of production.

The Japanese brand's premium compact model will share a platform developed with Mercedes, based on the latter's MFA platform architecture used on cars like the 2012 A-Class and the upcoming CLA four-door coupe.

The Infiniti model is believed to be loosely based on the Etherea concept (pictured here) from the 2012 Geneva Motor Show.


INFINITI ETHEREA CONCEPT


6 Comments:

William Cervini said... »October 19, 2012

Good move by Infiniti. Better not to get too German - poor build quality.

Rifraf said... »October 19, 2012

Infiniti tries hardest to be German, but this thing looks like something out of Cars.  Sorry, try again.  You're the best of the jap brands, so I'm sure you can do it...

Guest said... »October 19, 2012

 Actually the Magna plant won many JD power plant awards...and since when is Nissan/Infiniti known for build quality?

Treytreyhotboi said... »October 20, 2012

I feel a divorce coming. Just like Daimler and Chrysler

emjayay said... »October 21, 2012

The reverse kinks on the side windows and grille showing up in Infinitis are just trying too hard to be different. By the way, since we fought 'em in WWII, "jap" here is not considered just shorthand for Japanese in the US, but a racial slur.

Rob TheNerdisback said... »October 24, 2012

since forever...since when have you known an infiniti to break down?

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