LexFather

http://www.autoweek.com/news.cms?newsId=100963

Infiniti seeks Chanel's advice; automaker asks for help with selling pricey 2006 M cars
KATHY JACKSON | Automotive News and MARK RECHTIN | Automotive News
Posted Date: 10/7/04
LOS ANGELES -- Infiniti faces a challenge: boosting sales of vehicles at $40,000 and above, says Mark Igo, vice president of Infiniti Division.

The problem will become critical next spring when Infiniti starts selling the redesigned M cars. A company committee is huddling with makers of other luxury products, such as Chanel, to help solve the problem.

"The M is the (G35's) big brother," Igo says. "We have to resonate what Infiniti is all about. A lot of it is in the messaging. Most of the marketing focus will be on the M. You will see our best work. We want to find what we mean to our customers."

Through the first nine months, the G35 accounted for 55.4 percent of Infiniti's total U.S. sales of 96,180. The G's prices range from the upper $20,000s to the lower $30,000s.

U.S. sales of Infiniti sedans with a $40,000-plus price tag - the M45 and Q45 - were only 1,698 and 1,531, respectively, during the same period.

"Infiniti really changed with the G and the FX SUV," Igo says. "They brought in a younger, more affluent buyer. They wanted more power. So now we're in a position of: What do we do next? How do you keep people loyal to the brand?"

Nissan Motor Co. has formed a committee, of which Igo is a member, to determine what the next step should be for the Infiniti marque.

Patrick Pelata, Nissan Motor executive vice president for product planning and strategy, says the committee has met with top executives of high-end brands such as Louis Vuitton, Prada and Chanel to understand how those companies get their messages across.

Igo says the most pressing issue is how to position the redesigned 2006 M model when it arrives in U.S. showrooms next spring.

Igo says he has been charged with selling about 20,000 units annually. The vehicle will be priced between $40,000 and $50,000, he says.

Igo did not elaborate on marketing plans, but he said they would be more expansive than TV commercials. "It will be much more interactive" with things like ride-and-drives and sponsorships, he says.

John Capps, chairman of the Infiniti Dealer Advisory Board, says the current M sells only with huge incentives.

"By definition you must be able to sell vehicles above $40,000, or you're not a true luxury marque," says Capps, owner of Plaza Infiniti in St. Louis. "Infiniti has never been able to do that. So we look at the M as being all incremental business."

GS4Will

infiniti/nissan makes good cars..but to capture US market, in terms of brand name, infiniti still has some work cut out for them....

as we say, "image is everything"...

lexusk8

I can see how tough it is for Infiniti to increase the sales of their flagship luxury sedan, when there is heavy competition between the Lexus LS, Mercedes-Benz S-class, BMW 7-series, etc. From the article's perspective, it almost sounds like Infiniti has hired Chanel and other luxury product companies as consultants to solve the marketing/advertising issue of their M sedan. I believe this pleading for help from outside sources was never needed from Lexus, BMW, Mercedes-Benz, etc. Except for Infiniti, all of the luxury brands have been successful in their sales one way or another. I feel bad for Infiniti seeming like they always fall in last place in the luxury race, and it may be best for them to go back to the drawing board and figure out unique ways to win customers over.

rominl

iTrader: (4)

yeah i think infiniti still has some catch up to do to get themselves there. honestly if you compare brands (and what it's worth), i think the infiniti is more together with acura than to lexus/bimmer/mb. it's better than acura but not up there with the top dogs. unlike acura though, they try very hard to be in the same group with top competitions. however it's just hard right now with their quality control and marketing scheme. i think they have to somehow boost up their brand name

fireballs gs400

join the LL BEAN subaru and nautica jeep and town and country

Xenthar

I agree, but infiniti is doing a great job so far. Maybe at the release of the new m45, the redesign of the q45 and the release of the GT-R, it will be in line with lexus. Reliability and service seems to be on par with lexus. Its all just about bringing up the brand name factor. Its good that infiniti is looking to others for help in achieving this level of prestige. At least they are really trying to achieve this while acura doesnt care. We'll just have to wait and see in the next couple of years.

rominl

iTrader: (4)

yup, that's true, i see good in that they are seeking help. it doesn't hurt to have another player in the game.

mmarshall

Infiniti is going to have to upgrade their interiors if they want to sell more cars in the $40,000-$60,000 range. When Renault took over, one of the obvious cost-cutting measures, not only for Nissan in general but for upmarket infiniti as well, was cheap, low-finish interiors, starting with the Altima, but working their way into the Maxima, Murano, Infiniti FX35 /45, G35, and now the new M45. Even the flagship Q45 doesn't have quite the interior quality or decor the LS430 does....in spite of the fact that it DOES have some features the LS doesn't.
Granted, the G35 has sold fairly well, but what works in a $30,000 car won't necessarily work in a $40,000-plus car. and part of the G35's strength in the marketplace was not so much its interior but the fact that, until the new AWD Acura RL debuted, it was just about the only Japanese sport sedan available in the U.S.with All-Wheel-Drive.

mmarshall

I'd like to add to my previous post that I didn't really consider Subarus to be Japanese sport sedans, although the new 2005 Legacy / Outback turbos certainly qualify now....they are NICE cars. The WRX / STi is not in the same league as the G35...it is marketed to a different crowd for a different purpose.

Dynasty SC

one thing to remember when u state this... how many G35x's were actually sold? most people went for the RWD model. also, although i agree that they should upgrade their interiors... a crappy interior is definitely not stopping BMW from selling their cars.

infiniti is defintely coming up in the world... build quality, service, and reliability are pretty much on par with lexus. theyve just started to build more attractive cars and they have a winning formula at this point... they will definitely grow in coming years.

Xenthar

Have you ever been in a q45? The leather and all the interior materials are very high quality. I know the car itself isnt attractive and doesnt sell well, but they did no cost cutting when making the interior in that thing. I've been in both the q45 and the ls430 and they interior materials seem on par. The ls430 is just overall better looking.

As for the g35, the 2005 models have been totally upgraded to get rid of all the cheap interior parts. All the plastic is now real aluminum and real wood and the leather was upgraded to softer, more rich leather. As for american nissan cars, of course nissan automobiles have cheap looking interiors. All the lower non luxury brand japanese cars have cheap looking interiors (including toyota and honda).

How can you say the m45's interior is cheap when you havent even seen it yet? So far, reviews of the m45 in the autoshows say that the interior is very high quality and the fit and finish is top notch. I havent been able to see it myself, but in pictures, the interior looks very rich to me.

Incendiary

Infiniti, like Cadillac, is in the midst of a makeover that will definitely elevate their image nicely. The G35 and FX SUVs have done well by them, and they have to continue to make high powered, nice looking cars. I think the M35/45 fits that bill, but they have to be reasonable in price as well. If their cars are priced at a point a touch lower than Audi's, I think they'll sell a whole bunch. Right now, I see MB > BMW > Audi in terms of prices, which pretty much works for all of them, considering their images. Lexus and the other Japanese makes are priced a touch lower, with Lexus > Infiniti/Acura in price. I think the M35 would do well at ~$42k base and the M45 at ~$48k base.

Exciting cars that look good and handle well, and that win over C&D and the other mag comparos, will help, but price point is going to be important in terms of getting the young and relatively affluent crowd's affection as well.

Iceman

I agree with most everything you've said except for the price points that would lead to success on the M. I quite honestly don't think Infiniti has the panache to command those prices in a mid-tier sedan. It has nothing to do with whether or not the car is WORTH that price, which is probably why they're talking to Chanel, Gucci, and the like. If you take the Prada triangle off one of their black nylon bags, the thing would sell for $9.99 in a bin in the walkway at Macy's. But that magic badge makes people pay $500 for it. Infiniti's just not out of the bargain bin yet, and I think their success with the G35 will actually hurt them in this regard. Think about it: their renewed brand image is based on their cheapest product.

1SickLex has said it before--they should have rebuilt their brand from the top down. A Q that blew everyone in the market and car magazines away would have done (pardon the pun) infinitely more to get them where they seem to want to go. They're doing this the hard way, which may prove to be the impossible way given the fickle nature of customers and brand loyalty in the wacky world of "luxury goods".

mmarshall

I didn't say that Nissan and infiniti were not aware of the problem. They are. I just said that they were going to have to do some work on their interiors if they want to make their cars more attractive to the public. I've seen and driven Q's, G35's, and the old M45. No, I have not driven or seen the new M45 close-up yet....(though some excellent pictures were posted here at CL) I will, hopefully next month at the D.C Auto Show. I'll reserve judgement on that car when I see it...and later when I drive it.
Now...as far as RECENT Nissan / infiniti interiors go, sorry, chief, but I just am NOT impressed with them. They were very nice before Renault took over....but no longer. I stand by my statement. If you think they are as good as Honda /Toyota interiors, fine. I don't. You're entitled to your opinion...that's what forums are for. I just don't agree with it.
Nissan DOES seem to addressing this problem, slowly but surely. The 2005 Altima has shown some improvement, and I understand other Nissans are soon to follow.

Now....it you want to see some truly classy interiors, look no further than your nearest Audi dealer...especially the A8. The Volkswagen Phaeton also ranks way up there. So does the Lexus LS430.....and, among entry-level luxury cars.....the Lexus ES330.

videcormeum

I actually really like Honda's interiors ...

And while Toyota's interior materials don't impress me all that much, the way in which they build cars (inside and out) certainly does.

M.