Infiniti dealers settle in for extended QX60 drought

Infiniti's bestselling model is getting a makeover that will deliver an updated powertrain and a more muscular look. But for the brand's 204 U.S. dealers, the wait for the arrival of the 2022 QX60 midsize crossover will feel like an eternity.

Production of the current-generation QX60 ended in December, but the new version won't arrive until late August or early September, said Ed Lennon Jr., Infiniti National Dealer Advisory Board chairman and president of Circle Infiniti.

That presents the brand with a sales challenge.

The QX60 accounted for about 40 percent of new-vehicle sales at Lennon's West Long Branch, N.J., store last year.

"The inventory that we have right now has to last us for the next three to six months," Lennon told Automotive News in January. "That's going to be difficult because the QX60 will be in very, very short supply by the end of March."

Infiniti is struggling to reverse the biggest annual percentage sales decline in its history. U.S. sales tumbled 32 percent last year.

Falling sales have dented retailer profitability — more than 30 percent of the brand's U.S. dealers were unprofitable in January.

The QX60, along with the QX50 compact crossover, forms the backbone of Infiniti's U.S. sales.

Infiniti delivered 22,880 QX60s last year, or 29 percent of the brand's total sales.

Tyson Jominy, vice president of the Power Information Network at J.D. Power, said that while there have been instances of skipped model years and late-arriving replacements, it is "extraordinarily rare to have the sales leader take a 'gap year' like this."

Warren Zinn, president of Warren Henry Infiniti, said the QX60 supply disruption "has put us in a very difficult spot as far as what we have to sell."

Zinn said he's "never seen anything like this" in his 45 years in the auto retail business.

The QX60 accounted for nearly half of the new-vehicle sales at his North Miami dealership last year.

"We're going to have to sell QX50s," Zinn said. "We're going to have to get super strong on our pre-owned cars."

The delay in the new QX60's arrival leaves dealers without an offering in the competitive three-row vehicle segment.

While the Infiniti QX80 also features a third row of seating, the full-size SUV is about $25,000 more expensive.

"It's a smaller portion of the market, it's so much more expensive and the fuel economy is not competitive," Lennon said.

That leaves dealers with few options, including extending leases of current QX60 customers until the new model arrives, or attempting to move customers down-market into a QX50 compact crossover.

Infiniti realizes its dealers' predicament and is responding. In December, the automaker added incentives on the QX50 to drive sales of that model.

"It's not like you can take 50 percent of people who are buying QX60s and just move them over" to the QX50, said Jeff Pope, Infiniti Americas group vice president.

"The idea isn't to move people from QX60 to QX50. The idea is to maximize the volume on QX50 as much as possible" to maintain dealer throughput, Pope said.

Infiniti has also boosted production of the QX50, the brand's second-bestseller.

"We have made sure that we are maximizing our output in line with what we believe we can sell," Pope said.

"We're not going to ever blindly increase production without the ability to retail it, because the last thing I need to do is stock dealers with inventory they can't sell."

Pope pointed to the arrival of the new QX55 crossover coupe in April.

The QX55 "won't replace the consumer for the QX60, but it will allow for additional volume into the dealers," he said. "That car will bring a new buyer into the dealer showrooms."

Infiniti will also focus on its CPO program to help meet demand for three-row crossovers. The QX60 and QX80 are among Infiniti's most popular CPO vehicles, Pope said.

The 2022 QX60 will be the first product launch under the "Nissan-plus" strategy — a test to see whether the premium Infiniti brand and mass-market Nissan-brand vehicles can share more components without sacrificing their distinct identities.

The QX60 is powered by a 3.5-liter V-6 engine that delivers 295 hp.

The engine is mated to a new nine-speed transmission that delivers improved acceleration and a smoother driving experience.

The second-generation crossover will feature a raised hood profile, larger grille, dual 12.3-inch screens and a two-tone roof.

Lennon expressed disappointment that the redesigned Nissan Pathfinder, which shares the same platform as the QX60, will arrive in Nissan dealerships about three months before the QX60.

"The premium brand should come out first, whether it's 30 days or 60 days ahead," Lennon said.

Pope said he doesn't view the market launch timing as a "snub" to the Infiniti brand by Nissan. R&D schedules and market demands drive product launch timing.

"When you have multiple brands under one corporation, that's always going to take place," Pope said. "There are times that we come first in the process and the Nissan product follows."