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A while back we revealed that Infiniti‘s working on a new entry-level, FWD compact that would be based on Mercedes-Benz‘s A-Class platform. We now have news that Canadian-Austrian auto supplier Magna Steyr will be in charge of developing the entry-level model for Infiniti.

The final contract is expected to be agreed upon soon, allowing Magna to begin production at their factory in Graz, Austria starting in 2012. As we reported earlier, the new compact will be based on Mercedes-Benz’s MFA architecture which is seen in their A- and B-Class vehicles. Daimler will also be supplying preassembled complete parts to Infiniti.

According to sources, Infiniti’s new compact will be powered by Mercedes’s four- and six-cylinder powerplants, with diesel variants for the European market. The plan is to produce around 50,000 to 60,000 units a year in Graz, exporting them globally to compete against BMW‘s 1-Series and Audi‘s popular A3.

As mentioned earlier, Infiniti’s new FWD compact will be based on the Etherea Concept we saw at the Geneva Motor Show.

GALLERY: Infiniti Etherea Concept

[Source: Automotive News]

Following on from the announcement that it’s moving  global headquarters from Yokohama to Hong Kong, Infiniti is now looking at moving other assets overseas, namely the production of vehicles.

This latest move is largely due to the  record value of the yen against the US dollar which is making the marque’s vehicles increasingly less profitable in the North American market (the US remains a major source of revenue for the brand).

It’s a similar situation to that experienced by Japanese automakers in the 1990s, when the rising yen squeezed profitability on Nippon built vehicles sold in the United States (auto aficionados may recall the demise of the Nissan Z32 300ZX and Toyota Supra as particular examples).

Getting back to the present, Infiniti (despite assembling the goliath QX SUV in the US for a time) currently doesn’t build any vehicles outside Japan, though Andy Palmer, executive vice president for the brand said recently that, “as cars come up for renewal, generally they’re being relocated in a function of where the majority of sales are.”

Although deliberately vague, based on recent product introductions, that probably  means more production will materialize in the US and Europe, likely with added capacity at Nissan’s Smyrna, Tennessee facility for SUV based models (the new JX, unveiled at the LA Auto Show will be built there) and possibly Nissan’s operations in Sunderland, UK as a source for smaller, hatchback based cars, like the production version of the Etherea concept.

Whatever happens, expect to see this shift in production to oversees markets as a continuing trend in the coming years as Infiniti, along with other Japanese automakers aims to limit the affect of global currency fluctuations and potential supply issues on vehicle production.

[Source: Autoblog]

An investigation of the Infiniti M45 has been launched by the National Highway Traffic Safety Administration regarding the fuel gauges of the 2003-2004 M45′s. The investigation was prompted by consumer complaints about the fuel gauge readings being inaccurate.

According to NHTSA there have been 43 reports filed concerning faulty gauges in the luxury sedan. Of these, 23 cases report drivers running out of fuel despite the gauge not reading empty. The action taken by the company depends on NHSTA’s preliminary report which will focus on the scope and frequency of the problem. If the gauges are found to have major internal issues it could result in a consumer safety recall of the vehicle.

Despite a fairly decent reception from attendees at the 81st annual Geneva Motor Show last year, Infiniti has remained tight lipped about the chances of its Etherea concept (shown above) of entering production.

Instead, the automaker is saying that three possible designs are still in play for its new hatchback, with the winner to be announced next month, according to words uttered from a Dutch spokesman for the brand to local buff book publication Auto Week.

The car is yet another project that sees closer ties between Infiniti and Mercedes-Benz (the new G sedan and the diesel powered Euro spec M being others) and in fact, the little hatchback will share architecture with the next generation Mercedes A-Class.

As to whether it will share powertrains with the A-Class, that has yet to be determined (the Etherea concept sported a supercharged 2.5-liter four-cylinder), though the unnamed spokesman for Infiniti did say that a Hybrid version is on the table, conceived as a competitor for the new Audi A3 Hybrid.

Look for a more finalized version of Infiniti’s new hatchback to make an appearance at next year’s Geneva show, once the actual design direction for the car has been chosen.

[Source: Left Lane News]

With Europe having a long history of taxing cars based on engine displacement, automakers have long dodged this levy by placing diminutive engines in even their largest vehicles.

Infiniti is hoping to get around this by following the same path, and starting in 2012, the Infiniti M will feature a pair of 4-cylinder engines borrowed from Mercedes-Benz; a 204 horsepower turbocharged 1.8 L, and a a 170 horsepower 2.1L turbodiesel. Both engines are from the Mercedes-Benz C-Class, and will be some of the first technology sharing to come from the agreement signed by Mercedes-Benz and Nissan.

The vehicles are expected to be introduced at March’s Geneva Auto Show.

[Source: Left Lane News]

Ward’s Auto released their 10 Best Engines List for 2012 today, and no surprise here but direct-injection and turbocharging – the two big trends for today’s automotive era – are heavily represented.

The Ford Mustang Boss 302′s big 5.0L V8, with natural aspiration and good-old port injection managed to make the list, but pretty much everything else uses direct injection or turbocharging, while Chrysler’s Pentastar V6 took honors despite not having either of the two technologies.. Infiniti’s 3.5L V6 mated to a hybrid electric system was the sole hybrid.

Hit the jump below to see the full list