The 2012 Infniti M. Image: Infiniti
This much is clear: Infiniti can’t afford to build cars in Japan much longer. The yen is strong, while other currencies (such as the U.S. dollar and the euro) are weak, meaning that the cost to produce goods in Japan and sell them abroad has risen. Since Infiniti isn’t even sold in Japan, continuing to produce vehicles there makes no financial sense.
In a recent press conference, Nissan CEO Carlos Ghosn admitted that Infiniti was considering a move in production, likely to either North America or China. Automotive News (subscription required) quotes Ghosn as saying, “You won’t have to wait a long time before we make a decision about the new base for sourcing of Infiniti. If you follow our logic, we should make the cars where we sell them.”
Internationally, the two biggest markets for Infiniti are China and the United States. Sales in China grew by over 60-percent last year, prompting Infiniti to begin the relocation of its global headquarters to Hong Kong, in order to be closer to the Chinese market.
Chinese-built luxury cars may be hard for consumers in North America to swallow, so there’s a business case to be made for a North American manufacturing base, too. Nissan already builds the Infiniti JX in Tennessee, and it’s possible that future Infiniti models will be built there as well. Nissan also announced a production facility in Aguascalientes, Mexico, and could easily begin producing Infiniti models there when the plant is operational.
A third scenario is perhaps the most likely: Ghosn may opt to create a manufacturing base for Infiniti in both China and North America. This is a strategy that’s paid off well for German manufacturers like BMW and Mercedes-Benz, both of which produce cars in multiple locations across the globe.
Kurt Ernst has been passionate about automobiles and driving nearly his entire life. His early years were shaped working in the family service station, though his real passion was auto racing. After graduating from the University of Colorado, Kurt spent a year club racing with the Sports Car Club of America, before focusing on a business career in marketing and project management. Later, his passion for writing and the automotive hobby found him freelancing for a variety of automotive news sites, including Automotive Addicts and Motor Authority, where his work was syndicated and appeared in several national publications. Recognized as an expert in the automotive field, Kurt joined Hemmings Motor News as an Associate Editor in 2013, and in the years since has progressed to Editor, Hemmings Daily; Managing Editor for Hemmings Motor News, Hemmings Classic Car, Hemmings Muscle Machines, and the Hemmings Daily; and now, Managing Editor, Hemmings Auctions. Kurt was instrumental in organizing the Hemmings Motor News Concours d’Elegance from 2013-2019, and has served as a judge at this event and The Vintage Racing Stable Concours d’Elegance. A Skip Barber Racing School graduate and prolific writer, Ernst is also skilled in copyediting, project management, brand development, and public relations.
