In a Reuters exclusive, sources told the publication that Nissan will no longer be developing Infiniti luxury vehicles with Daimler's Mercedes-Benz.
Originally, Nissan planned to use Daimler’s MFA2 car platform in future Infiniti luxury models including a Q40 compact sedan. But with joint development grinding to a halt, the Q40 may be cancelled.
Sources claim that the cause of this suspension was financial in nature.
Originally, development of the MFA2 platform was to be funded by the two companies and the production of this platform was to take place in their shared factory in Mexico. But sales projections and Infiniti product pricing failed to meet targets that were set when the plan was first proposed, so they would not have been able to absorb Mercedes technology costs.
"The targets set by Infiniti were too difficult to achieve," one source said. "One of the lessons learned is that if you have the costs of a luxury vehicle but not the pricing, it's hard to be profitable."
In spite of this, the two companies will still be opening a $1 billion shared factory in Aguascalientes, Mexico, this year.
But production costs at the plant could increase because the brands will no longer be sharing a compact car architecture, instead the plant will have to cater to different platforms.
Infiniti is still expected to build their next gen QX50 at the new plant, but it won’t be sitting on the MFA2 platform.