Infiniti Backs Out of Plan to have Magna Steyr Build its Mercedes-Benz-Based Compact Model

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In May this year, the Nissan group announced that it had come to an agreement and signed a memorandum of understanding (MoU) with auto manufacturer Magna Steyr for the assembly of a new, Mercedes-Benz-based, Infiniti compact model in Austria.

Well, this is not going to happen as on Friday, the Japanese automaker issued a statement saying that, even though Infiniti is moving ahead with plans to develop the compact model with a scheduled launch in 2015 (and not in 2014, as originally stated), it won't be built by Magna Steyr, but instead, it will produce the car itself.

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