Nissan Confirms Plan for Infiniti Production in China

Nissan Motor Co. tells The Wall Street Journal it intends to build two Infiniti models in China by 2014, as has been reported.

Andy Palmer, executive vice president for Infiniti, says the cars will be designed for China and produced with Nissan's Chinese partner, Dongfeng Motor Group Co. He doesn't identify the models or expected volume.

Nissan will publicly unveil an extended-wheelbase version of its Infiniti M 35 hybrid midsize sedan on Monday at the Beijing auto show. Palmer says the model was designed for Chinese consumers particularly those with chauffeurs but will eventually be sold in other markets.

Local output is key to reaching the company's goal of boosting Infiniti sales in China from 19,100 vehicles in 2011 to 100,000 units in 2016. That target is part of Nissan's plan to increase the brand's worldwide sales to 500,000 units by the same date.

The company currently exports Japan-made Infiniti vehicles to China. The cost of those vehicles is inflated by the strong yen and China's high tariff on luxury imports.