Infiniti 'under-estimated' Aussie market

The global boss of Nissan luxury brand Infiniti has admitted it under-estimated the effort required to be competitive in the Australian new car market.

Infiniti Australia announced significant price cuts of between $7500 and $13,100 earlier this month, followed within days by the departure of its founding general manager Kevin Snell.

Infiniti says the two events are entirely unrelated and that -- unlike Porsche, which announced hefty price cuts across its range earlier this year – it will not be compensating recent Infiniti customers.

But now its worldwide chief has acknowledged Infiniti did not appreciate the fierce rivalry that exists between fellow luxury brands Mercedes-Benz, BMW, Audi and Lexus in Australia.

“I think we have very clearly under-estimated the competitive nature of the Australian market,” Infiniti President Johan de Nysschen told motoring.com.au at the Frankfurt motor show shortly after revealing the new Q30 crossover hatch. “But we are ready to stay the course.

“To be candid, if we looked at the price position we had adopted for Infiniti, as appealing as our products are and as attractive as the brand is, it is somewhat over-reach when an Infiniti FX is priced higher than a Porsche Cayenne.

“This was clearly a pricing anomaly and we had to rectify it.”

Infiniti launched in late August 2012 with the large FX SUV and large M sedan through single Sydney and Brisbane dealers, with a Melbourne dealer added later. The G37 coupe and convertible arrived at the end of 2012.

De Nysschen admitted that launching with models well into their life cycles may have backfired on Infiniti.

“I think with the benefit of hindsight it would have certainly been helpful to have a strong tailwind with a very fresh model, but there were also very good reasons for beginning to get the brand established so that by the time you are able to launch cars like the Q30 you have some dealer network in place and you have some infrastructure in place.”

Infiniti sales have averaged just 26 per month in 2013, although the company’s official line has always been that in its early years the plan was to establish the brand in Australia rather than chase big sales.

“We know it’s a long journey to build a brand,” said de Nysschen. “It’s not something that you can expect overnight success with, but we have a long-term vision and for us that vision primarily now is about building brand and not about building sales numbers.

“If we get the products right, if we get the brand right and we get the ownership experience right then sales success eventually will follow.”

Infiniti announced the sizeable price cuts on September 2 and Snell’s departure just four days later, citing his desire “to establish his own independent business operation outside the automotive industry”.

National Sales Manager Andre Zeitzev, whose move from Ateco Automotive was also announced on September 2, is temporarily running the business, which is deep into the planning for the launch of its vital Q50 medium sedan, which it expects to be its biggest selling model from November.

“Kevin’s departure was an unforseen event, we are sorry to see him go and we are grateful for what he has done and we will clearly be looking very rapidly to find a successor,” said de Nysschen.

Rumour circulating in the automotive industry suggested the Infiniti price cut had been a unilateral move by Infiniti Australia, but de Nysschen rejected that.

“Nothing of that nature gets discussed without my participation and yes, I evaluated the proposal, we discussed it as the Infiniti global team with strong input from our Australian colleagues and I agreed with them.”

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