Automotive News Canada - January 2021- v2 - 16

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Challenged
Infiniti looks
for a rebound
New stores, new product
aim to propel struggling
brand into the future
By DOUG FIRBY

CALGARY CORRESPONDENT

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cent - worse than any other major
brand - (5,783 total sold) in 2020 versus 2019 and in the United States
reported 2020 sales of 79,502, down 32.5
per cent from 2019.

'BETTER DAYS AHEAD'

Yet even with such troubling signs,
it is premature to write off Nissan's
THE SHINY DEALERSHIP SITS
31-year-old luxury brand, say dealers,
on the southern edge of Ottawa as
industry analysts and company execthe crown jewel in the 17-dealership
utives.
Myers Automotive Group.
" We think there are better days
" It's our newest and biggest dealahead, " said Leeder. " I like the direcership, " said CEO Cyril
tion they're heading. " The
Leeder of the Myers
three months from August
Infiniti operation. The
through October delivered
group spent $8 million to
the best sales volume his
build the 26,000-squarecompany had seen for the
foot (2,400-square-metre),
brand since Myers opened
two-storey facility, which
the dealership less than
opened in December 2018.
two years earlier, he said.
It stands as a symbol of one
Rob Gowe, general mandealership group's faith
ager of Markham Infiniti
in the future of the luxury
in the Toronto suburb of
Leeder: No regrets
brand.
Markham, said he is also
" If we had to do it again, about building
optimistic of a resurgence
we'd make exactly the same a new Infiniti
of Infiniti sales. He joined
decision, " said Leeder, who dealership despite
the dealership in August.
doesn't buy into the gloomy the brand's sales
" I wouldn't be with the
woes.
forecast for Infiniti.
brand if I thought that it
PHOTO: MYERS
The brand is hanging
wasn't going to be around, "
AUTOMOTIVE GROUP
tough after a two-year marhe told Automotive News
ket-share slide in Canada and worldCanada.
wide. Sales of 188,944 units around the
The dealership's parent compaworld in 2019 were down 25 per cent
ny, Drive Autogroup, has considered
from Infiniti's best year in 2018, when
expanding Markham Infiniti or even
it sold 249,000 vehicles, according to
building a new structure. But the comthe Automotive News Data Center in
pany is delaying a any action until it
Detroit. In 2019, Infiniti was pulled
sees the lasting effects of COVID-19
from western Europe, and its market
and the popularity of new models, said
share in the United States dropped to
Todd Lalonde, the company's director
0.7 per cent.
of operations.
As with most other brands, the
" The last 12 to 14 months have
COVID-19 pandemic has also had
been a bit of struggle, " he said.
an impact. Infiniti reported that its
" Everybody's holding their breath
Canadian sales were down 47.3 per
on the QX60. "

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* JANUARY 2021

Infiniti Canada's Steve Rhind
said sales have been hurt by
COVID-19 and the brand's
dropping of fleet, which
accounted for 12 per cent
of sales in Canada.
PHOTO: INFINITI CANADA

Myers Automotive Group spent $8 million to build a
new Infiniti showroom in Ottawa in 2018. CEO Cyril
Leeder said he would make the same decision today.
PHOTO: MYERS AUTOMOTIVE GROUP

Infiniti has vowed to launch five
new vehicles within three years, starting with a redesigned QX60, the first
full remake of the midsize three-row
crossover since it debuted as the JX35
in 2013. In September, the company
revealed an animated teaser of a heavily restyled QX60, which is expected to
be available in 2021.
In October, Infiniti gave Canada's
dealers a glimpse of future products in
a Zoom conference call. Jason Morrey,
general manager of Morrey Infiniti in
Burnaby, B.C., and chair of the Infiniti
Dealers Group, said the new models
can't come too soon for dealers.
" Like any brand, we rely on new
product. We're needing a refresh of
the lineup. "
In addition to the remade QX60,
the new products include the QX55
- a coupe-inspired crossover - and
a series of concept vehicles, including an electric SUV called the QX
Inspiration and the QS Inspiration EV
sedan. In 2019, Infiniti introduced the
Canada-only Q50 and Q60 I-LINE performance sedans, and a redesigned
compact QX50 crossover.

pated in the dealer call with the company. " I think the future for Infiniti
will be fine. "

NOT TOO MUCH NISSAN

New Infiniti products will be part
of a " Nissan-plus, " strategy, COO
Ashwani Gupta told sibling publication Automotive News in May. That
means the company will make greater use of Nissan platforms and components and adopt Nissan's e-Power
hybrid system, which uses an internal-combustion engine solely as a generator to power electric motors.
Automotive News also reported
that Infiniti's current rear-wheeldrive models will likely be replaced
by a Nissan platform, perhaps derived
from the Altima or Maxima.
However, Brian Murphy, analyst
at Canada Black Book Inc., cautioned
that Nissan needs to keep its luxury
brand distinctive. For example, he said
Toyota's Lexus line established buyers' expectations of a luxury brand by
choosing right from the start to have
dedicated retailer showroom space.
" The Infiniti buyer needs to feel
CANADA KEY MARKET
they're buying an Infiniti, " said
Murphy.
Steve Rhind, manager director
Morrey said that's the plan.
of Infiniti Canada, told Automotive
" We've talked to the leadership
News Canada this country is the third
in Japan. They absolutely confirmed
largest Infiniti market in the world,
[Infiniti] will be a standalone luxury
behind the United States and China.
brand. "
Rhind, who assumed the
The Infiniti reboot will
role last March, said sales
occur amid significant cost
have been affected by both
cutting by the Renaultthe COVID-19 pandemic and
Nissan-Mitsubishi alliance,
a decision to discontinue
which is cutting models and
fleet sales, which was 12 per
factories.
cent of the brand's business
But Rhind said the sharin Canada.
ing of platforms is common
Eliminating fleet sales
for all makes. (Lexus, for
helped protect the vehicles'
example, uses the Toyota
residual values, he said. The
RAV4 platform for the NX
brand also reduced invenMurphy: Infiniti
200t.)
tory levels to the industry
can thrive with a
Rhind said it is the
average 65-day supply, he
product line that is
upgraded components, presaid, and changed the mardistinct from the
mium finish and enhanced
gin structure to allow more
Nissan brand.
customer service that difmoney for dealers.
FILE PHOTO
ferentiates the product.
" By reducing fleet while
" It's not a rebadging of a Nissan
focusing on sustainable growth ... the
product. The experience will be
Infiniti brand has made a significant
uniquely Infiniti. "
change to our business approach, which
The brand has 39 dealerships
will lead to increased profitability in
across Canada, of which 26 are stand2021, " said Rhind.
alone and 13 are shared with Nissan,
Morrey said retailers have been
according to the company.
frustrated by the long wait for new
" There needs to be a premium,
models, but Infiniti executives
exclusive experience for the customassured them the product cycle will be
er, " Rhind said, including providing
shortened.
service enhancements, such as test
Leon Cheliadin, general managdrives from home and concierge mainer of Applewood Nissan-Infiniti in the
tenance service.
Richmond (B.C.) Auto Mall, said his
Much of the brand's future hingcompany reopened an Infiniti dealeres on how well the new models are
ship there in September after a previreceived, said John Bardwell, autoous owner closed at a nearby location.
motive product specialist with Bond
Applewood Nissan/Infiniti is under one
Brand Loyalty in Toronto.
roof to keep overhead costs down.
" They need QX60 to be a hit. "
" I really feel that Infiniti is still
there, " said Cheliadin, who partici- ANC

Automotive News Canada - January 2021- v2

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