LONDON -- Nissan said today that Austrian contract manufacturer Magna Steyr will build a new premium compact car for the automaker's Infiniti brand starting in 2014.
Infiniti boss Andy Palmer said in a statement that the car will help the brand to reach new consumers and grow in key markets such as western Europe.
Nissan did not give any more details about the car or say whether it will be sold in markets outside Europe such as the United States.
But sources told Automotive News Europe last December that Nissan wants to roll out the entry-level car worldwide to help win a 10 percent share of the global luxury market.
Infiniti executives have previously said the entry-level model will compete with premium compact cars such as the Audi A3 and Mercedes-Benz A class.
The car is expected to be based on Mercedes's MFA compact platform that underpins the new A- and B-class cars. Renault-Nissan and Mercedes parent Daimler announced a strategic cooperation between the two companies in 2010.