EXCLUSIVE: Could Infiniti Introduce a Q67?

At the recent Detroit auto show, we had the opportunity to speak with Infiniti vice president Michael Bartsch, who oversees the product strategy for the Americas. He shared his views on the Q60 Concept, his product strategy, and some insight on the competition—including the Mercedes-Benz GLE.

How is Q50 doing?

We've sold about 36,000 cars. If you look at the segment performance-the D passenger segment-Q50 is about 25 percent of the 6-cylinder part of the segment. The only issue with that is that it's now down to about 45 percent of that market, and the 4-cylinder is about 55. Two years ago, it was the reverse. We have to get a 4-cylinder into that car, and it's of course coming: the 2.0-liter 4-cylinder, [by] the middle of the year.

And the current Q40 (neé G37)?

That car still plays a really important role. It's obviously in its phase-out, but it's still a really important car because it was always in place to allow us to have price points [that] protect the Q50, and allow for a chance for the car not to have to be discounted in order to compete with the 4-cylinder cars in that segment. As soon as the 4-cylinders come out in the Q50, there will be a position to phase that car down.

This is the first auto show in a while at which the Q30 concept isn't here. Why is that?

Because we've got the Q60. It's still only a concept. The car is launched in America in, probably, very early 2016. It will be launched in Europe in 2015. So, we'll have a reveal for that car in Geneva. The Q60 is the story at the moment.

Q60 has the potential to—

—it has more than potential.

—let me rephrase. Going forward, will the even-numbered products mean something different than the odd-numbered ones [like BMW's 3- and 4-series, and Audi's A4/A5]?

No. Q is a passenger vehicle and a QX is an SUV or crossover. The numerical part of the nomenclature will simply reflect where the model sits in the segment hierarchy in the market. There's no reason why we couldn't have a Q65 or a Q67 or Q66. Perfectly logical.

By that logic, can you price Q60 higher than you can price Q50?

The Q60 price range is $41,000 to about $50,000. The Q50 is about $36,000. So, it's already there.

What do you think of Mercedes-Benz's new tall coupes?

Funny you should mention that. I looked at that GLE coupe and I tried to think, "Why?" But then I also looked at the X6 and said, "Why?" My BMW colleagues told me they've sold a quarter-million of those cars. There are a lot of people out there who have the answer to "why." It's an indication of how segmented the market is, and maybe it's an indication of personal taste, but it doesn't resonate with me.

Looking at the original FX [now QX70], that had a really sloped rear, too.

I don't think there's a parallel. I think they're really different. I don't think it has anything to do with a sloping roof. That car had an integrated look. What I find with the X6 and GLE is it's like you're trying to make one car out of three. I don't think that [you] could ever accuse the FX of that. When the FX came out, I wasn't involved in the company at all, and I barely had Infiniti on my radar. When that car came out, I said, "My goodness. The Japanese have actually built a car that really is absolutely outstanding, leading its class." That car was a real crossover. The X6 and GLE coupes are like [hatchbacks] on steroids, but they don't want to call it a hatch. Then Mercedes decided to call it a coupe, but they want someone who wants a sports car but wants to sit up high and [also] know they've got to go shopping. I think it's a totally and utterly confusing car. I don't get it. I really don't. But that doesn't make me right.

Barring not being able to get it, do you think there's room for something like it within Infiniti's lineup?

Where there's room for Infiniti is for us to have a broader bandwidth of products. We're starting to address that with Q30 in the C-segment, and you'll start to see smaller crossovers and some evolution with the QX50. We'll be far more distinguishable as a crossover as we understand the segment.

Jaguar is remarkably bullish on diesel, assuming a 20 percent take rate. You'll have access to some diesel engines soon.

We'll have access through the Daimler partnership and through the Renault association. We have to be a bit pragmatic at the moment. We can't try and do everything at once. We're starting from a fairly small platform and we have to build ourselves up. Right now, we have to look after the basics: to get the Q30 to the market, get the Q60 to the market, put new 4-cylinders into the market, think about where we'd place a halo car. It's all there, and all doable. Nobody knows what this fuel price business is going to do as a short-term distortion to the market. Long term it won't change anything. In the next year, there might be people recalculating their mixes at the moment. We all know that won't last forever.

So it's not affecting your planning?

We don't have anything that's an extreme gas guzzler. Equally, regardless of fuel prices, we have to have a 4-cylinder. We have hybrids, and it's not our intention at the moment [to] put out anything alternative, or full-electric. We have the Leaf within the Nissan group addressing that end of the market.

What's the status on Eau Rouge?

Good question. There is no status. There is no decision not to build it, and no decision to build it. The fundamental issue at the moment is purely a question of time and engineering resource allocation. As soon as Roland [Kruger] gets his feet on the ground, I'm sure he'll make some firm decisions on how that product does. At the moment, the critical thing is to make sure that we get products on the market that will deliver volume and profit to the dealers, and address the need of the consumer base. Here's a really good example to underline that: Since the G35 was launched-G35, G37, and the Q60 coupe as we currently have it-there have been 170,000 cars sold. Ostensibly, that's been the same model since 2002, except for the upgrade and power, and so on. We have a huge owner base out there that, on the whole, is extremely happy with their cars, but haven't been given an opportunity to upgrade. We'll have a lot more potential and get a lot more out of putting Q60 into the market than getting an Eau Rouge into the market. 

Are you happy with the dealer network right now?

We have really good dealer business partners. The one thing about this industry is that it never stays still. Network development is a never-ending cycle. The average retail environment is good for ten years, and then it has to be refreshed. We have very solid partners that have given us No. 2 position in the U.S. in CSI. The difference between [that and first place] is of statistical irrelevance. It says a lot about the quality of our products.

What's your favorite historic Infiniti model?

The first time I really took notice of the brand was with the FX. That was the first time I really thought, "Wow." It wasn't the G35 or G37 because it wasn't the world I was dealing with. Certainly, I still remember the first time I saw the FX. I thought it was a really stunning design. It was ahead of its time [and] pre-empted a lot of what was coming. It was the first of the small crossovers, with a muscular, sporty look. It was like nothing else at the time. That car came out while I was still in Australia. In those days, I was cheering the German car lines on.

The newest Murano seems quiet enough, luxurious enough, and refined enough to ostensibly be an Infiniti. Would you agree with that? Have you driven it yet?

I haven't driven it [yet]. This is a moving target. This is the latest generation of Nissan. Equally, I would expect the latest generation of Infiniti to move up in increments. Those cars are coming.

Your four SUVs are good, for right now?

Yes. I think so. We've always said that to be successful in this segment, you want to reach about 80 percent of the luxury market [on a volume basis]. Right now, we're at about 65 percent. You can almost fill in the dots.

How will your brand priorities shift in, say, five years?

The priority has always been, "where do we want the brand to be?" The priority over the next four years is to consolidate and cement the brand positioning. Once we've done that, we've really securely anchored the company. We need equity in the brand. Once we have that anchored, that drives prestige. Prestige drives intentions and market share. We have to make sure that when anybody talks about luxury vehicles, we feature in the sentence.

Is that how you will measure success?

The way you measure success in this industry is the sales funnel. In that sales funnel, you look at your overall opinion metrics, where the market is telling you what it thinks of the brand. When we have opinion and ales metrics of Mercedes-Benz, BMW and Lexus-or better-we'll know we've been successful.