Magna Steyr to Build Infiniti Small Car

Nissan Motor Co. says Magna International Inc.'s Magna Steyr unit in Graz, Austria, will assemble a new luxury small car for the carmaker's Infiniti brand beginning in 2014.

The car will compete with such models as the Audi A3 and Mercedes-Benz A-Class sedans.

Nissan says the car will be sold in "key" markets that include western Europe to help Infiniti achieve annual global sales of 500,000 units by 2016. Nissan did not say if the new car would be marketed in the U.S.

The company has provided no details about the new luxury car. But it hints that the model will be inspired by the Etherea hybrid sedan concept it revealed at the 2011 Geneva auto show.