Nissan to Launch Infiniti Brand in Japan with the Q50 – The End of Skyline Range?

Launched in 1989 as a competitor for Toyota’s luxury division Lexus in the United States, Nissan’s Infiniti brand has been expanding worldwide in recent years, focusing especially on Europe. Now it looks like Infiniti will debut in Japan as well, as Nissan wants to capitalize on demand for luxury cars in its home market.

According to a report from Japanese business daily Nikkei quoted by Reuters, Nissan will launch the redesigned Skyline luxury sports sedan under the Infiniti brand as early as this winter. The Skyline is sold as the Infiniti Q50 in the United States and Europe. Nissan hasn’t yet communicated the price of the Q50 in Japan, but the report said the sedan will be built in a plant in Tochigi Prefecture. In the U.S., the Infiniti Q50 starts from $36,700.

The fate of the Nissan Skyline range remains unknown, but it doesn’t make much sense for the Japanese company to offer the same exact vehicles under different brands in the same market.

According to Nikkei, Nissan will sell Infiniti models at existing Nissan dealerships and has no plans to set up an exclusive sales network for now. If sales are good, Nissan may consider expanding the Infiniti lineup in the country.

Infiniti vehicles are mostly produced in Japan and exported overseas. The brand made up less than 1 percent of Nissan’s operating profit in the last two years as the strong Japanese Yen dented affected its exports. However, Infiniti is expected to meet its own operating profit margin target this fiscal year, thanks to a weaker yen and low depreciation charge.

Infiniti president Johan de Nysschen said he expected the brand to meet its target for an operating profit margin of 6-7 percent in the fiscal year ending in March 2014.

By Dan Mihalascu

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