Infiniti And Mercedes Cancel Plans For Jointly-Developed Luxury Compact Car

Infiniti and Mercedes-Benz parent company Daimler have allegedly suspended development of their luxury compact car that was supposed to be a joint effort.

Japanese publication Nikkan Kogyo claims that the two automakers have halted work on the joint model due to consumers now demanding utility vehicles. Additionally, uncertainty over tariffs in the United States are thought to have played a role in the project’s termination.

The Renault-Nissan Alliance and Daimler committed to a share-trading partnership in 2010, and one of the vehicles anticipated to launch from this collaboration was a compact vehicle.

Automotive News reports that the vehicle would have been produced at a company facility in Aguascalientes, Mexico. If the plan to build the car were to have gone ahead, Mexican production would have opened it up to possible duties that could arise from the U.S. government’s desire to renegotiate the North American Free Trade Agreement (NAFTA).

The Mexican factory is a 50/50 joint venture between the two groups. Production of the Infiniti QX50 crossover has already commenced there, and soon, Mercedes-Benz will build its next-generation compact cars there.

Despite the canceled compact car project, Infiniti spokesman Trevor Hale said the partnership between the automakers remains important.

“The cooperation between the Renault-Nissan-Mitsubishi Alliance and Daimler is solid and we continue to reap the benefits of our successful cooperation, which includes a number of R&D and manufacturing initiatives around the world.”

Through the share-trading partnership, Nissan owns a 1.55 per cent stake in Daimler, while Daimler holds 3.1 per cent of Nissan. Additionally, Renault has a 1.55 per cent share of Daimler and the German brand has a 3.1 per cent share in Renault.

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  • Spyder Hole Fantome

    I’m a bit wary of German – Japanese alliances. Just sayin…

    • mihsf

      It’s mostly a French-German alliance though.

      • Spyder Hole Fantome

        Oh snap, you’re right! Well thst was never going to last very long…

  • ME

    No thanks, I bought a Mexican made product by one of the major manufactues and it was a lemon.

  • Socarboy

    Smart move Nissan by canceling this collaboration of your Infiniti with Daimler’s Mercedes…everyone knows that Daimler doesn’t play flair in such alliances….just ask Chrysler

    • Mike anonymous

      THANK YOU, someone acknowledges the whole Chrysler situation!!
      The Chrysler Firepower & The Chrysler me-412 (concept & prototype vehicles)… yes prototype vehicles, because they built working pre-production versions of both vehicles.
      (These are images of both vehicles. I want to note that both the interior and exteriors (as shown here) were built to production spec).

      Chrysler had huge plans to move up-market and complete with brands such as Aston Martin, Bugatti (and I say Bugatti, because the prototype me-412 was powerful enough to nearly give todays Chiron a run for it’s money when I comes to speed and power… and this was in 2004).

      The Chrysler 300 was going to be Chrysler’s entry level model, opposed to their top of the line vehicle (that it is today). The Me-412, The Firepower, & (a full sized luxury sedan) were going to be at the top of their line up.

      Mercedes Benz at the last minute before production was green-lit for both vehicles (after they had been developed), “pulled the plug” (taking the money that was meant to go into the production of both vehicles and using it for Mercedes Benz branded vehicles instead). Some of the engineering that was put into the Me-412 later turned into the Mercedes Benz SLR McLaren (because Chrysler built that could actually “show up” Mercedes’s (at the time) new SLR-McLaren), and both Chrysler vehicles were shelved.

      • xconnor

        honestly i feel kinda bad for chrysler. they wouldn’t be in the place they are now if they released those canceled projects.

        • Mike anonymous

          I feel exactly the same way. The Chrysler brand would be perceived in completely different light than they are now, if those projects had been released.

      • vvmdrf

        Thank you for sharing this.

        • Mike anonymous

          No problem, Your welcome.

    • mihsf

      They didn’t cancel the collaboration, they cancelled one project.


    so there’s no q30 using new a class technologies


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