The Truth About Cars » johan de nysschen http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Mon, 15 Dec 2014 13:00:56 +0000 en-US hourly 1 http://wordpress.org/?v=4.0.1 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » johan de nysschen http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com Cadillac Exec: “No Petrolheads Need Apply” http://www.thetruthaboutcars.com/2014/12/cadillac-exec-petrolheads-need-apply/ http://www.thetruthaboutcars.com/2014/12/cadillac-exec-petrolheads-need-apply/#comments Tue, 09 Dec 2014 13:00:38 +0000 http://www.thetruthaboutcars.com/?p=954809 It is not our intention to pile on poor Cadillac after our recent discussion, but comments made last week by the automaker’s marketing manager Ewe Ellinghaus must be noted. Speaking to Advertising Age, he repeated the new company mantra about the carmaker becoming a “the first luxury brand that happens to make cars,” and then added: “When I recruit new people, I don’t […]

The post Cadillac Exec: “No Petrolheads Need Apply” appeared first on The Truth About Cars.

]]>
Casa-de-Cadillac-_Christmas-1955 Courtesy curbsideclassic.com

It is not our intention to pile on poor Cadillac after our recent discussion, but comments made last week by the automaker’s marketing manager Ewe Ellinghaus must be noted. Speaking to Advertising Age, he repeated the new company mantra about the carmaker becoming a “the first luxury brand that happens to make cars,” and then added:

“When I recruit new people, I don’t need petrolheads. We have more than enough petrolheads and we will still. I need people with experiences in other industries, but with luxury brands.”

We must assume that Ellinghaus, most recently with Montblanc pens and formerly with BMW, was using the European term equivalent to what we call a “car guy” or “car gal.” If so, Cadillac’s future is as bleak as the B&B thinks it is, and not just because of products.Ellinghaus and new Cadillac president Johan de Nysschen are assembling a team of perfectly-diverse and social-media savvy managers from non-automotive luxury companies who probably know all the right restaurants in their new home in New York City. That is fine but choosing not to hire proven car industry folks is just plain dumb. A car guy or gal is someone who has succeeded because they understand that sales only comes from great cars, great marketing and great dealers.  Bob Lutz is a car guy. Soichiro Honda was a car guy. Lee Iaccoca was a car guy. Ellinghaus says Cadillac has cars guys on staff but we can’t think of any; either way he insulted them all by saying, “we have more than enough petrolheads.”

Ford Motor Company has a true car guy on the rise by the name of Henry Ford III. The great-great grandson of the company’s founder actually spent a summer at Galpin Ford in Los Angeles selling cars to better understand the retail side of the business. We doubt you will ever see de Nysschen or Melody Lee, their “Director of Brand and Reputation Strategy” talking to Cadillac shoppers on a showroom floor, let alone ever setting foot in one of their retailers. Speaking of dealers, Cadillac needs a major overhaul of their dealer body, one that is lagging behind other luxury brands in customer handling. Whoever will be in charge of dealer relations needs to be a major car person, not Amber from Tiffany’s.

One issue not discussed by our commentariat in our last Caddy story was the impending move of their sales and marketing team from Detroit to Manhattan. One good thing about being in New York is the chance to hire managers away from the US headquarters of BMW, Mercedes-Benz and Subaru in northern New Jersey. (Oh, wait, they are not hiring petrolheads.) Separating themselves geographically from the rest of GM might be a good idea, but they went the wrong direction: they should have gone west to car-crazy Los Angeles. Lee recently said that people in New York City are a “little bit ahead of everyone else,” another insult to GM’s Michigan workforce. That may be, but people in Los Angeles are ten steps ahead when it comes to knowing great cars.

At least Ford was visionary enough to open an Orange County, CA office in 1999 as headquarters for its former “Premier Auto Group” brands, Range Rover, Volvo, Jaguar, Aston Martin, and Lincoln. Cadillac should have done the same. Ford was thus smack in the middle of the market where import luxury brands sell upwards of 20% of their cars and where Mercedes-Benz sells 50% of its AMG hot rods. Automotive trends start in Los Angeles, not New York.

Ford's old SOCAL luxury brand building; Caddy should have done the same

Ford’s former LA luxury brand building; Cadillac should have moved to SoCal rather than SoHo

Ford execs could walk downstairs on a Saturday morning and meet hundreds of knowledgeable car folks at the premiere “Cars and Coffee” gathering in the country. When the Caddy crew walks out of their Soho high-rise, what car folks will they be able to meet and greet other than limo and taxi drivers?

Cadillac has massive product issues and their sales are tanking this year. Industry insiders wonder how long de Nysschen and his crew will last at Caddy. We think his next move should be to Acura so he can say he worked for the trifecta of Muddled Brand Image, Nutty Nomenclature Automakers: Infiniti, Cadillac and Acura. At least he will be in Southern California, surrounded by petrolheads.

The post Cadillac Exec: “No Petrolheads Need Apply” appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/12/cadillac-exec-petrolheads-need-apply/feed/ 164
De Nysschen: $250K Cadillac Flagship Ready By 2029 http://www.thetruthaboutcars.com/2014/11/de-nysschen-250k-cadillac-flagship-ready-2029/ http://www.thetruthaboutcars.com/2014/11/de-nysschen-250k-cadillac-flagship-ready-2029/#comments Fri, 21 Nov 2014 15:00:31 +0000 http://www.thetruthaboutcars.com/?p=949177 The upcoming Cadillac CT6 may be the premium brand’s flagship for now, but president Johan de Nysschen has a grander flagship in mind for the next decade. Reuters reports the future flagship would likely arrive in 2029 with a price of $250,000, bringing Cadillac up to par against the likes of Rolls-Royce and Bentley. This […]

The post De Nysschen: $250K Cadillac Flagship Ready By 2029 appeared first on The Truth About Cars.

]]>
Cadillac President de Nysschen poses with the Cadillac ATS-V during the model's world debut at the Los Angeles Auto Show in Los Angeles

The upcoming Cadillac CT6 may be the premium brand’s flagship for now, but president Johan de Nysschen has a grander flagship in mind for the next decade.

Reuters reports the future flagship would likely arrive in 2029 with a price of $250,000, bringing Cadillac up to par against the likes of Rolls-Royce and Bentley. This would supercede not only the CT6, but a planned range-topping flagship due to arrive by 2020 per de Nysschen’s roadmap for his brand.

In the meantime, the CT6 is expected to be priced “in the 70s,” just above the current XTS. De Nysschen is also eyeing a vehicle below the ATS that would go up against the Mercedes-Benz CLA, as well as pondering additional crossovers to lend aid to the SRX, citing the Germans’ wide array of crossovers for inspiration.

The post De Nysschen: $250K Cadillac Flagship Ready By 2029 appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/11/de-nysschen-250k-cadillac-flagship-ready-2029/feed/ 184
Cadillac Dealers Prepare To Step Up, Or Leave, Sales Game Under De Nysschen http://www.thetruthaboutcars.com/2014/10/cadillac-dealers-prepare-step-leave-sales-game-de-nysschen/ http://www.thetruthaboutcars.com/2014/10/cadillac-dealers-prepare-step-leave-sales-game-de-nysschen/#comments Tue, 21 Oct 2014 14:00:13 +0000 http://www.thetruthaboutcars.com/?p=934202 Facebook commenters and the automotive press aren’t the only ones feeling the lash from Cadillac boss Johan de Nysschen, as dealers themselves are feeling the pressure to step up their game. Automotive News reports that while some Cadillac dealerships have nothing to worry about, and are, in fact, completely on-board with de Nysschen’s alphanumeric global […]

The post Cadillac Dealers Prepare To Step Up, Or Leave, Sales Game Under De Nysschen appeared first on The Truth About Cars.

]]>
cadillac-dealer-inside

Facebook commenters and the automotive press aren’t the only ones feeling the lash from Cadillac boss Johan de Nysschen, as dealers themselves are feeling the pressure to step up their game.

Automotive News reports that while some Cadillac dealerships have nothing to worry about, and are, in fact, completely on-board with de Nysschen’s alphanumeric global vision, those on the low end of the totem pole fear they may be selling something else if they can’t compete on the level their new boss expects of them.

Specifically, de Nysschen may want to consolidate the brand’s network of 924 dealerships into a more BMW/Mercedes-esque number — hovering in the 330 – 370 range — with a similar focus on urban markets. Though neither he nor anyone representing Cadillac have stated such plans were on the table, dealers like Claude Burns and an unnamed dealer in the Midwest are going on the offensive to maintain their spots: a new expanded floorplan for the former, lawyering-up with an attorney who represented dealers during General Motors’ bankruptcy for the latter.

As for the boss himself, de Nysschen had this to say about the future of his dealerships after his meeting with them last month in Las Vegas, where he outlined his vision for the brand and their role in it:

It’s very clear to me that many, many dealers already have risen to the challenge. On the other hand, when those customers engage us in our dealerships, we cannot afford that the experience is anything other than confirming that this is a first-class brand. And not all of our dealers are there.

The post Cadillac Dealers Prepare To Step Up, Or Leave, Sales Game Under De Nysschen appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/10/cadillac-dealers-prepare-step-leave-sales-game-de-nysschen/feed/ 131
De Nysschen: Cadillac Moved To NYC, Alphanumerics To Be Global Player http://www.thetruthaboutcars.com/2014/10/de-nysschen-cadillac-moved-nyc-alphanumerics-global-player/ http://www.thetruthaboutcars.com/2014/10/de-nysschen-cadillac-moved-nyc-alphanumerics-global-player/#comments Thu, 16 Oct 2014 11:00:25 +0000 http://www.thetruthaboutcars.com/?p=931954 Cadillac boss Johan de Nysschen has taken a lot of flak as of late for the brand’s moves to New York City, and to (albeit standardized) alphanumeric naming conventions. The first time, he took to Facebook to address his critics. This time? De Nysschen took it to the source. In response to Automotive News editor-in-chief […]

The post De Nysschen: Cadillac Moved To NYC, Alphanumerics To Be Global Player appeared first on The Truth About Cars.

]]>
Cadillac ATS New York Plate

Cadillac boss Johan de Nysschen has taken a lot of flak as of late for the brand’s moves to New York City, and to (albeit standardized) alphanumeric naming conventions. The first time, he took to Facebook to address his critics.

This time? De Nysschen took it to the source.

In response to Automotive News editor-in-chief Keith Crain’s letter lamenting both issues in the name of Detroit, de Nysschen penned a letter to the editor addressing Crain’s concerns.

Regarding the CT/XT nomenclature chosen in lieu of proper names — including Eldorado, Seville and Fleetwood — the president said such emotional attachment to those names “should be balanced against the fact that those names resonate more with baby boomers and are U.S.-centric,” and are not relevant to Cadillac’s intended global audience “where the reality is that alphanumeric nomenclature is a deeply entrenched industrywide practice.”

As far as the notion of Cadillac abandoning Detroit for SoHo, de Nysschen says the move was not due to any personal preference, stating that “no corporation would tolerate such indulgences by its leadership.” Instead, it was done to help reinforce “the psychological and physical separation in business philosophy” between the premium brand and the rest of General Motors. He adds that the net loss of 50 jobs in Detroit would likely be filled by GM, and pale in comparison against the 1,600 new manufacturing jobs secured by the automaker’s decision to green-light the CT6 earlier this month.

Finally, he does acknowledge Crain’s concern over business efficiency disadvantages as a result of the move, noting that said disadvantages were anticipated beforehand, “and will be overcome by making changes to current corporate processes.” De Nysschen concludes that all business decisions will be made by the brand’s leadership every step of the way, answering only to GM’s top brass and the automaker’s shareholders.

The post De Nysschen: Cadillac Moved To NYC, Alphanumerics To Be Global Player appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/10/de-nysschen-cadillac-moved-nyc-alphanumerics-global-player/feed/ 149
Cadillac Boss Unveils Portfolio Revitalization Plan For 2020 http://www.thetruthaboutcars.com/2014/10/cadillac-boss-unveils-portfolio-revitalization-plan-2020/ http://www.thetruthaboutcars.com/2014/10/cadillac-boss-unveils-portfolio-revitalization-plan-2020/#comments Fri, 10 Oct 2014 15:00:42 +0000 http://www.thetruthaboutcars.com/?p=928642 First, there was the move. Then, there was the CT6. Now? Cadillac boss Johan de Nysschen unveils a blitzkrieg bop of a product roadmap, all set to be fulfilled by 2020. In an exclusive with Reuters, de Nysschen’s overall plan to revive Cadillac is anchored by a roadmap that will expand the portfolio from five […]

The post Cadillac Boss Unveils Portfolio Revitalization Plan For 2020 appeared first on The Truth About Cars.

]]>
2015 Cadillac ATS Coupe

First, there was the move. Then, there was the CT6. Now? Cadillac boss Johan de Nysschen unveils a blitzkrieg bop of a product roadmap, all set to be fulfilled by 2020.

In an exclusive with Reuters, de Nysschen’s overall plan to revive Cadillac is anchored by a roadmap that will expand the portfolio from five models at present, to 10 models by 2020.

Aside from the upcoming CT6 — which will come with a PHEV variant when the flagship debuts in showrooms late next year — he says he just received the green light to bring a range-topping vehicle into the fold, likely to be called either the CT8 or CT9. The vehicle would do battle with long-wheelbase variants of the Mercedes S-Class and BMW 7 Series when it enters showrooms at the end of this decade.

On the greener side of the fence, de Nysschen has designs for an EV, and a potential successor to the ELR that may or may not have two extra doors.

Further down the alpha-numeric trail, two new crossovers — which will wear the XT moniker — will sandwich the SRX, including a seven-passenger model set to arrive by 2018 at the latest; the SRX will be redesigned and renamed in 2016.

Meanwhile, a smaller vehicle positioned under the current ATS, along with the smaller crossover, will share its platform with the next-generation Chevrolet Cruze, and go up against the BMW 1 Series and Mercedes CLA-Class. Both will be in showrooms between 2017 and 2018.

Other parts of the plan include building the CT6 and the successor to the SRX in China, where Cadillac is aiming to move 75,000 units by the end of the year, while Europe will remain in the distance until after 2020.

The post Cadillac Boss Unveils Portfolio Revitalization Plan For 2020 appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/10/cadillac-boss-unveils-portfolio-revitalization-plan-2020/feed/ 111
De Nysschen Says Cadillac Will Stick With Pricing Strategy, Confirms New York City Move http://www.thetruthaboutcars.com/2014/09/de-nysschen-says-cadillac-will-stick-pricing-strategy-confirms-new-york-city-move/ http://www.thetruthaboutcars.com/2014/09/de-nysschen-says-cadillac-will-stick-pricing-strategy-confirms-new-york-city-move/#comments Tue, 16 Sep 2014 15:03:50 +0000 http://www.thetruthaboutcars.com/?p=913314 Cadillac’s aggressive pricing strategy is here to stay, according to the brand’s new chief, Johan De Nysschen, and if he has his way, there won’t be major incentives to help juice sales either. Speaking to Automotive News, De Nysschen said “We cannot deny the fact that we are leaving behind our traditional customer base…It will take […]

The post De Nysschen Says Cadillac Will Stick With Pricing Strategy, Confirms New York City Move appeared first on The Truth About Cars.

]]>
ATS-side-550x412

Cadillac’s aggressive pricing strategy is here to stay, according to the brand’s new chief, Johan De Nysschen, and if he has his way, there won’t be major incentives to help juice sales either.

Speaking to Automotive News, De Nysschen said

“We cannot deny the fact that we are leaving behind our traditional customer base…It will take several years before a sufficiently large part of the audience who until now have been concentrating on the German brands will find us in their consideration set. Either you have to bring your volume aspirations into alignment with reality and accept that you will sell fewer cars, or you have to drop the price and continue to transact at the prices where you were historically. I think the logical conclusion is that it’s better to build off a very solid base in terms of [product] credibility, charge a fair price for the car and realize you have to wait until the volume comes,”

 

De Nysschen’s strategy is partly based on the playbook he used at Audi, where he oversaw a gradual, deliberate climb from an obscure luxury arm of Volkswagen into Tier 1 luxury brand status, through a combination of engineering, marketing and a focus on interior and exterior design.

The story of Audi is unique due to the fact that it stands in stark contrast to the desire for rapid short-term results in many corners of the auto industry. It’s tempting to think of Audi as an overnight success story, but the reality could not be more different. De Nysschen is hoping to emulate that same pattern of growth, but that will require a fair amount of latitude from GM management, and the commitment to a longer-term vision that has not always been present at the auto maker. De Nysschen also confirmed that some functions will move to New York City, though details were unclear.

According to De Nysschen, he will have a hand in all functions of the brand, from engineering to design to product planning to dealer development. In the short-term, he must deal with relatively poor sales for the brand’s ATS and CTS sedans, ballooning inventories and a pricing strategy that has the new sedans competing head to head with the German brands in terms of sticker price. De Nysschen is willing to play the long game on this last front – but he’ll have to count on GM’s buy-in at every step of the way for it to work.

 

The post De Nysschen Says Cadillac Will Stick With Pricing Strategy, Confirms New York City Move appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/09/de-nysschen-says-cadillac-will-stick-pricing-strategy-confirms-new-york-city-move/feed/ 137
Bartsch: Infiniti On Track Despite Key Departures http://www.thetruthaboutcars.com/2014/09/bartsch-infiniti-track-despite-key-departures/ http://www.thetruthaboutcars.com/2014/09/bartsch-infiniti-track-despite-key-departures/#comments Wed, 03 Sep 2014 12:00:30 +0000 http://www.thetruthaboutcars.com/?p=905681 Though the departures of Johan de Nysschen and Andy Palmer from Infiniti and Nissan respectively may be setbacks in the premium brand’s overall trek toward becoming a proper player in the luxury game, Infiniti Americas VP Michael Bartsch believes the brand will stay the course in the end. According to Ward’s Auto, Bartsch says Infiniti’s […]

The post Bartsch: Infiniti On Track Despite Key Departures appeared first on The Truth About Cars.

]]>
Infiniti-Q30-1

Though the departures of Johan de Nysschen and Andy Palmer from Infiniti and Nissan respectively may be setbacks in the premium brand’s overall trek toward becoming a proper player in the luxury game, Infiniti Americas VP Michael Bartsch believes the brand will stay the course in the end.

According to Ward’s Auto, Bartsch says Infiniti’s roadmap, as designed by de Nysschen and endorsed by both Palmer and Renault-Nissan CEO Carlos Ghosn, is “locked in.” Further, the plan, and by extension, Infiniti, is greater than the people behind it, with a “collective stewardship of the mission and the vision” in place.

The plan calls for Infiniti to go up against the likes of BMW, Mercedes and Audi by expanding its offerings over the next few years, meeting them in 85 percent to 86 percent of the segments where the German brands currently do battle:

The reality of it is the German brands have fractured the market more than we’ve ever seen. The challenge for Infiniti at the moment is not whether we can build cars for the segment. I think our record shows very clearly we can. It’s not what we currently have, the challenge is what we don’t have. To be an effective player in (the luxury sector), you have to have range. You have to have the bandwidth.

The expansion will begin when the Q30 arrives in showrooms throughout 2015, and will feature redesigns of current vehicles, as well as possibilities for a flagship and a sports car down the line.

The post Bartsch: Infiniti On Track Despite Key Departures appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/09/bartsch-infiniti-track-despite-key-departures/feed/ 6
Cadillac Considers Shifting Some Operations To NYC http://www.thetruthaboutcars.com/2014/08/cadillac-considers-shifting-operations-nyc/ http://www.thetruthaboutcars.com/2014/08/cadillac-considers-shifting-operations-nyc/#comments Fri, 22 Aug 2014 13:00:28 +0000 http://www.thetruthaboutcars.com/?p=897858 As part of brand boss Johan de Nysschen’s overall plan to boost its image outside of the United States, Cadillac is considering moving some of its functions to New York City. Reuters reports the move to Manhattan would affect marketing, advertising and strategy, putting physical and cultural distance between the three and the rest of […]

The post Cadillac Considers Shifting Some Operations To NYC appeared first on The Truth About Cars.

]]>
2014 Cadillac CTS V Sport

As part of brand boss Johan de Nysschen’s overall plan to boost its image outside of the United States, Cadillac is considering moving some of its functions to New York City.

Reuters reports the move to Manhattan would affect marketing, advertising and strategy, putting physical and cultural distance between the three and the rest of the brand’s operations in Detroit. The move would also bring new talent that Cadillac may not have obtained if everything remained within the Motor City.

This would not be the first time such a move occurred under de Nysschen’s watch. As head of Infiniti, he moved the brand’s team to Hong Kong in an effort to gain outside input and autonomy beyond parent company Nissan’s influence.

The post Cadillac Considers Shifting Some Operations To NYC appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/08/cadillac-considers-shifting-operations-nyc/feed/ 63
Official: Johan de Nysschen Departs Infiniti For Cadillac http://www.thetruthaboutcars.com/2014/07/official-johan-de-nysschen-departs-infiniti-for-cadillac/ http://www.thetruthaboutcars.com/2014/07/official-johan-de-nysschen-departs-infiniti-for-cadillac/#comments Fri, 11 Jul 2014 14:59:13 +0000 http://www.thetruthaboutcars.com/?p=863489 Johan de Nysschen, the executive largely credited with Audi’s rise to Tier 1 luxury brand status, has left his post at Infiniti after just two years on the job. He will assume the top job at Cadillac, after former President Bob Ferguson was moved to a new post as GM’s head of public policy. de […]

The post Official: Johan de Nysschen Departs Infiniti For Cadillac appeared first on The Truth About Cars.

]]>
Johan-de-Nysschen-.-Picture-courtesy-Bertel-Schmitt3-450x300

Johan de Nysschen, the executive largely credited with Audi’s rise to Tier 1 luxury brand status, has left his post at Infiniti after just two years on the job. He will assume the top job at Cadillac, after former President Bob Ferguson was moved to a new post as GM’s head of public policy.

de Nysschen, who took the helm as Infiniti moved its headquarters to Hong Kong and re-organized its nomenclature (into the confusing “Q” and “QX” lines), was expected to lead a long, progressive turnaround for the brand, much as he did with the once-struggling Audi.

But his departure for Cadillac bodes poorly for a luxury brand that has failed to establish itself in the same way that Lexus has in North America, let alone globally. Witness the confusion around the Infiniti Q50, which was branded as a Nissan Skyline in Japan, despite a supposed push for Infiniti’s entry into the Japanese market.

While de Nysschen cited family concerns as a major motivation (he and his family have strong ties to the United States, having lived there for many years), an Automotive News story suggests that CEO Carlos Ghosn’s extremely ambitious targets may have played a part in de Nysschen’s departure.

Despite that, he will have a challenge on his hands at Cadillac. GM is also aiming for a major push into Europe – and you can bet that de Nysschen’s tenure will be focused on that goal.

The post Official: Johan de Nysschen Departs Infiniti For Cadillac appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/07/official-johan-de-nysschen-departs-infiniti-for-cadillac/feed/ 57
Infiniti Exploring Canadian Assembly Plant http://www.thetruthaboutcars.com/2013/04/infiniti-exploring-canadian-assembly-plant/ http://www.thetruthaboutcars.com/2013/04/infiniti-exploring-canadian-assembly-plant/#comments Mon, 15 Apr 2013 13:31:01 +0000 http://www.thetruthaboutcars.com/?p=484832 It’s no secret that Infiniti is looking to diversify its manufacturing footprint. As part of a broader Nissan strategy to localize production and escape the yoke of yen fluctuations, Infiniti will soon be setting up shop in China and at Nissan’s Sunderland facility in the UK. Next on the list is another North American site. […]

The post Infiniti Exploring Canadian Assembly Plant appeared first on The Truth About Cars.

]]>

It’s no secret that Infiniti is looking to diversify its manufacturing footprint. As part of a broader Nissan strategy to localize production and escape the yoke of yen fluctuations, Infiniti will soon be setting up shop in China and at Nissan’s Sunderland facility in the UK. Next on the list is another North American site.

Right now, the Infiniti JX is the lone Infniti product built outside Japan, but that will have to change under Nissan’s new strategy. Infiniti President Johan de Nysschen told the Wall Street Journal that in addition to the United States and Mexico, Canada is also an option for the new plant.

Calling Canada a “compelling alternative”, de Nysschen said

“Canada also has the potential now with free-trade agreements and discussions to be a very viable source of production exports to Europe,”

Canadian Industry Minister Christian Paradis is expected to meet with de Nysschen in Hong Kong this week. A new factory is expected to cost around $2 billion, or about half of what expansion would cost at an existing facility, and would add 2,000 direct jobs. Some government investment would likely be provided in exchange for the plant. Toyota received $34 million from both the Ontario and Canadian federal governments to re-tool an existing plant to produce Lexus SUVs, and that sum was on the very low end of the scale for auto plant investment.

However, Canada offers some advantages compared to the other jurisdictions, namely a looming free trade agreement with the European Union. This arrangement has been cited in the past as a compelling reason for Audi to build Q3s and other vehicles in Mexico, especially those small premium crossovers, which are in demand on the continent.

The post Infiniti Exploring Canadian Assembly Plant appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2013/04/infiniti-exploring-canadian-assembly-plant/feed/ 5