• Infiniti is at a crossroads; 2025 could prove decisive for the automaker.
Earlier this week, we reported on the travails of one automaker under the Stellantis banner. In the U.S., Alfa Romeo dealers have been selling, on average, just seven vehicles a month since the start of the year. This is clearly an unsustainable situation.
For Nissan's luxury brand, things aren’t that dire, but they’re not all that rosy either. This year, on average, 24 vehicles per month are being sold by each U.S. Infiniti dealer.
That is not enough to ensure profitability. Some are reporting losses of $600,000; in a few cases that’s reaching $2 million. This week we learned that the company is going to approve, on a case-by-case basis, the cohabitation of certain Infiniti dealerships within Nissan facilities. The company does not want to lose its franchisees, and it will do everything in its power to accommodate them.
This represents a major challenge, as the quality of Infiniti service, recognized once again this year by JD Power, must be preserved.
The truth is, Infiniti sales have been in freefall in the United States for the past 10 years. In 2013, the brand sold 116,455 vehicles. Last year, it delivered 64,699, for a drop of 45 percent. In Canada, in 2023, Infiniti sold 6,208 vehicles. It’s simply not enough.
An insufficient range
The brand offers just four models, including the QX50 and its coupe version the QX55; their conception dates back eight years. The QX80 may be new this year, but it alone is not going to get the company back on the road to profitability. The truth is that over the past 10 years, Infiniti has made a lot of promises, but there have been many changes of direction and few new models.
The QX50 with its VC-Turbo variable-compression engine was supposed to turn the tide for the brand, but it never managed to make its mark on the market. And now the QX60 has borrowed that model’s 2.0L turbocharged 4-cylinder engine, a decision that may not please buyers.
Infiniti’s products aren't bad. But they are sometimes outdated, often ill-adapted, and consequently shunned by customers. It's going to take a serious shake-up.
Among the promises we've heard in recent years is that of an all-electric sedan (possible to be named Q70), and an SUV called the QX65, intended as a coupe-style version of the QX60. It's going to take more than that.
Critical year
We never wish for the demise of any manufacturer, but if Infiniti is to survive, the coming year will be important, even decisive. In 2025, we'll need to see something tangible on the horizon.
Complicating things enormously is that the parent company, Nissan, is also struggling. Several reports over the past week give the brand 12 to 14 months to secure its future. Clearly, a struggling company can't invest heavily to rescue its luxury brand; it will have to save its own skin first.
Eyes will be riveted on both Infiniti and Nissan over the course of 2025 to see if top brass finds and implements solutions that will ultimately prove viable and ensure the long-term survival of the two brands.
