Why, you might be wondering, did Infiniti have such a tough month of May? And why, you might also be pondering, is Infiniti having such a tough year? And how, you might be asking, will the new Infiniti M Hybrid make a difference to questions one and two?
The answer to the last question is simple: The Infiniti M35h ($67,300) will have no significant impact on Infiniti sales in 2011. But there is a lovely bit of smart, efficient engineering in this fast and astoundingly fuel-efficient luxury sedan (0-100 km/h in less than 5.5 seconds).
The combination of an efficient gas V-6 engine (302 hp) and a 50 kW electric motor (rated at 67 hp) translates into a powertrain rated at the equivalent of 360 hp. That would not be such a big deal save for one other fact: this sexy-looking and high-tech Infiniti gets better city fuel economy than a pint-sized, $13,000 Nissan Versa sedan (107 hp).
No, really. The Versa is rated at 7.7 litres/100 km in the city; the M Hybrid is at 7.5 and boasts a combined 6.9 litres/100 km. Sure, the Infiniti wants premium gas, versus regular for the Versa, but because you should use less gas, your annual fuel bill for the M Hybrid will be about the same as your neighbour's homely little Versa.
With all that in mind, you'd think M Hybrids will be flying off dealer lots now they have gone on sale. Don't count on it.
First, dealers won't be able to tap huge supplies of this gasoline-electric car. Second, the track record of hybrid vehicle sales is sketchy at best. Last year, hybrids as a group accounted for less than one per cent of all new-vehicle sales in Canada - and Toyota owned some 60 per cent of them, primarily thanks to the Prius ($27,800).
Third, there is something amiss in how Infiniti and its dealers are getting out the Infiniti message. Remember, sales were down 37 per cent in Canada last month and are down 15.3 per cent on the year.
What's the competition doing? Audi sales were up 15.1 per cent in May and are up 18.5 per cent on the year; BMW up 19.1 per cent in May and up 9.9 per cent on the year; Mercedes up 14.7 per cent in May and up 6.4 per cent on the year. On the other hand, Lexus sales were down 30.3 per cent on the month and are down six per cent on the year.
Without a doubt, the earthquake and tsunami crisis in Japan has hurt supplies of Lexus and Infiniti models for a long list of reasons. That, in turn, has hurt sales because you can't sell what you don't have. But Infiniti also has a much smaller lineup of offerings than Audi, BMW and Mercedes-Benz. As for Lexus, most of its offerings are ready to be replaced by redesigned and reengineered models.
From my corner, Infiniti has long looked like a wasted opportunity for Nissan. As my late father used to say over and over, if you're going to do something, do it right. Infiniti hasn't done the luxury car thing right for a couple of decades - at least not completely right across the board.
Sure, sales in 2010 were the second-best in the brand's history at 8,233. Consumer Reports and other research groups that focus on quality love Infiniti. ALG, which tracks residual values, says the Infiniti brand is the best among all luxury brands for resale value over the last three years. Infiniti makes good cars that are safe and entertaining to drive, come loaded with modern technology, appear stylish and modern and hold their value.
Yet over the last few years, Audi has zoomed from selling about the same number of vehicles as Infiniti, to the point where this year Audi will sell more than double the number of its Japanese rival. This seems wrong, even though the company insists that profitability is the No. 1 goal, not sales leadership. Okay, stick to that story if you like. Meanwhile, I'd just point out that the German luxury brands are eating your lunch - and that of Lexus, too.
And as I said, the M Hybrid is not going to change that. Not one bit, though I suspect the technology message will buff up the Infiniti brand.
This is some impressive car. What's interesting is how coy Infiniti types are about the future of luxury hybrids at their brand. Is another coming? Stay tuned, we're told. We do know an all-electric Infiniti is in the pipeline and we're also told "continued use of fuel-efficient technologies" will be a hallmark of the brand. But details? Not so much.
Why these folks would not jump at rolling out this hybrid powertrain across the line is not something the company wants to discuss. Perhaps they have seen that Lexus can't give away the M Hybrid's closest competitor, the Lexus GS 450h ($71,750). Perhaps there is no chance at all of getting massive supplies of high-tech lithium ion batteries. Perhaps consumers just won't buy hybrids in big numbers at all, luxury hybrids or otherwise.
Whatever the story behind this story, Infiniti has some interesting products in its lineup and the M 35h is one of them. What's missing is a strong, compelling, consistent message (that's marketing, folks) and aggressive sales tactics (that would be pricing and the sales experience). Infiniti also needs to have a broader lineup of models.
Until Infiniti starts to get these things right, Audi, BMW and Mercedes will keep owning the vast majority of luxury buyers - and Infiniti will remain the niche brand it's been for 20-odd years. And that's wasting some superb engineering and design work not just in the M Hybrid, but in other Infinitis, as well.