Remember the unloved FWD Infiniti G20, which was based on the Nissan Primera? Well, it looks like Nissan is reportedly considering the development of a compact around the size of the BMW 1-Series and Audi A3 specifically targeted for Europe. Big cars and large engines don't make sense in Europe, which is going to be a stumbling block for Infiniti with their current lineup of cars.

The smallest engine they have is a 3.5 liter V6, which by European standards is not fuel efficient and is heavily taxed. The JDM Nissan Skyline further gets a choice of 2.5 liter V6. Although, Infiniti will be getting a diesel engine option for Europe, a smaller car would make perfect sense if Infiniti wants to take hold of the European market. Current reports suggest that the new 370Z will have a 4-inch shorter wheelbase than the 350Z. This shortned version of the updated FM platform could spawn a new compact for Infiniti.

Infiniti Europe hopes to have 78 dealers across the continent by the end of 2010 selling an initial line-up consisting of the new EX, FX and G models.

Nissan realizes, however, that it will take a long time for Infiniti to establish itself in the market, and as a result is planning to financially subsidize its European dealerships in the short term until they can turn a profit.

Infiniti competitor for 1-Series and A3 headed for Europe!

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