Infiniti backs off of e-Power for the U.S.

Infiniti has ditched plans — at least for now — to bring a promising series-hybrid technology to the U.S. The decision could delay the luxury brand's electrification plans in its biggest market.

The technology, now popular in Japan under the name e-Power, is a central pillar of parent Nissan Motor Co.'s electrification strategy. Introduced in Japan in late 2016, e-Power uses a battery-powered electric motor to drive a vehicle's wheels, and a gasoline engine to charge the battery.

But after talking up e-Power's benefits for years, Infiniti informed U.S. dealers it will hold off on bringing the technology to the U.S.

An Infiniti spokesman confirmed the decision, noting it was part of a "reevaluation and reset" of the brand's product and powertrain strategy.

"We took into account market trends, the regulatory environment and most importantly, customer preferences," the spokesman, Kyle Bazemore, told Automotive News. "We will prioritize fully electric vehicles as our initial electrified offering in the Americas, along with advanced internal combustion-powered vehicles."

Infiniti dealers said they were told by the manufacturer that e-Power did not deliver the performance required to be competitive in the U.S. The cost of implementing the technology also apparently was a consideration.

"They couldn't bring it in at the right cost," Infiniti National Dealer Advisory Board Chairman Ed Lennon Jr. said. "I don't think it helped them with their CAFE rating."

Early tests gave Infiniti executives hope for bringing e-Power stateside, said Dallas Fox, executive manager at Tim Dahle Infiniti in suburban Salt Lake City. "But once they got further along, they found out that it wasn't going to be able to deliver," Fox said. "They put all this money into e-Power and it's not going to make the cut."

Infiniti dealer Warren Zinn said e-Power "was going to be a great combination between internal combustion and electric."

"The information that they had for us on this was always very positive — when this comes, this is going to be great," said Zinn, CEO of Miami-based Warren Henry Auto Group.

"And then it wasn't coming."

The technology could still show up on Infiniti's mainstream sibling brand. Nissan may adopt e-Power on its next-generation Kicks and Rogue crossovers in a few years.

But the change at Infiniti marks a clear shift in thinking.

In early 2018, Nissan Motor Co.'s then-CEO Hiroto Saikawa said new Infiniti models launched after 2021 would either be all-electric vehicles or rely on e-Power. And last summer, Infiniti Motor Co. Chairman Peyman Kargar teased a "high-performance, exclusive version" of e-Power.

"We will have more horsepower — much more — to represent Infiniti because that's one of the ingredients of the DNA of Infiniti," Kargar said at the time.

Infiniti still plans to offer e-Power on its vehicles outside North America, with China likely to be the first market.

But with e-Power off the table, some dealers are now wondering what Infiniti's electrification strategy is for the U.S.

The company has not publicly shared its EV product plans.

"We believed that we were going to have the electrification in some manner with e-Power," Zinn said. "Now that is something that we don't have."

The luxury segment's rapid shift to battery-electric vehicle strategies might also have led Infiniti to reconsider e-Power, according to retailers. Volvo, Cadillac and Jaguar have announced their intent to ditch combustion engines and go all-electric in the next several years. And Mercedes-Benz and BMW are accelerating their BEV plans.

The first Infiniti EV won't arrive in the U.S. for at least a couple of years. The model likely will be based on the Qs Inspiration sports sedan concept, which debuted at the 2019 Shanghai auto show. The concept featured an elevated driving position and electrified all-wheel-drive power.

Infiniti also is planning to launch an electric midsize crossover, as early as 2024, based on the QX Inspiration concept revealed at the 2019 Detroit auto show. That concept featured a cab-forward design with short front and rear overhangs and a shorter hood.

With the luxury segment going all-in on EVs, Infiniti dealers say the pressure is on for the Japanese automaker to respond.

"A lot of people driving gas cars would definitely take a serious look at electric," Zinn said.

"Infiniti should be easing their way into electrification, and not doing that in some manner is disappointing."