If you believe performance, luxury and fuel economy is an oxymoron, then you haven’t driven Infiniti’s 2013 M35h. The h is for hybrid … and horsepower.

Performance? The 360 combined horsepower of the V6 engine and electric motor blasts the hybrid sports sedan from 0 to 60 mph in 5.2 seconds, and the quarter mile in a time of 13.9031 seconds – a Guinness Book of World Records.

Luxury? The interior is detailed, refined and awash in wood trim and high-grade leather with creature comforts befitting its luxury status.

Oh yeah, fuel economy? Considering its performance capabilities, the M35h has an astonishing EPA fuel economy rating of 27/32 mpg city/highway, with a combined rating of 29 mpg. That’s a huge leap beyond the gas-powered M37’s (the 2011 replacement for the M35) numbers of 18/26 and 21 combined.

The hybrid system, called “Infiniti Direct Response Hybrid,” was developed and engineered solely by Nissan, Infiniti’s parent company. This is the Japanese automaker’s first foray into a home-grown hybrid propulsion system and uses technologies developed for the Nissan Leaf electric vehicle, including the lithium-ion battery and electric motor. (Nissan’s first hybrid offering, the discontinued Altima Hybrid, was developed by licensing Toyota’s gas-electric technology.)

Nissan engineers designed the M Hybrid system to fit all of Infiniti’s rear-wheel-drive models, including the G sedan and coupe and the EX and FX crossovers. That suggests a strong hybrid path for the Infiniti luxury line.

If Nissan, the most ardent of electric car champions, is trumpeting the benefits of a gas-electric hybrid, it must say something about the enduring role that hybrids can play in improving the fuel efficiency of faster and more spacious cars that fuel up at the pumps instead of the plug. Its meaning to the green car movement shouldn’t be easily dismissed

Available in a single edition with three option packages, the 2013 Infiniti M35h has a base price starting at $54,200, a $500 increase over the outgoing model. For its sophomore year, the M Hybrid adds standard features including, auto-dimming sideview mirrors and auto-trunk cincher, and the addition of a rear sonar system to the Premium Package.

A “P2” Hybrid System

Infiniti’s hybrid system gives consumers another flavor of hybrid technology – to compete against full hybrids from Toyota/Lexus, BMW, Mercedes-Benz, Audi, Ford and others. Bearing some resemblance to the two-mode hybrids from General Motors, the system design incorporates a single disc-shaped electric motor/generator, two clutches and a standard seven-speed automatic transmission with the torque converter removed. Called a parallel two-clutch system, hence the name P2, it is aimed at a blend of power and efficiency.

The “full-hybrid” architecture allows the M35h to operate on the electric motor only, the gasoline engine only, or a combination of the two depending on driving conditions and driver demands. It also saves gas by automatically shutting off the gas engine when the car is stopped. As in other hybrid vehicles, the motor doubles as both a propulsion unit and a generator that recovers energy otherwise lost during deceleration and braking.

The powertrain embodies the 3.5-liter V6 engine from the previous M35 and works with the single electric motor and two clutches. The engine uses the Atkinson-cycle valve timing that trades some power output loss for improved efficiency.

The twin overhead cam, 24-valve V6 is rated at 302 horsepower and 258 pounds-feet of torque at 5,000 rpm. The 346-volt motor generates 67-horsepower (50kw) at 2,000 rpm and 199 pounds-feet of torque. Combined output of the V6 and electric motor is 369 horsepower. Whether propelled by the engine, electric motor or both, the energy is directed to the rear wheels and controlled by the seven-speed automatic transmission.

The first of the two clutches is a dry clutch positioned between the engine and the AC motor, which is in-line with the front of the transmission. This eliminates the need for a torque converter and allows the full decoupling and shutting down the V6 nearly any time there is adequate battery energy to power the car by electricity alone. The second clutch is a wet clutch at the rear of the transmission that allows the engine to turn the motor/generator to charge the batteries with the vehicle stationary. It also smoothes the drivetrain during shifts and when the V6 is turned on and off.

In addition to manual shift capability for the transmission, the M Hybrid has four driving modes selected by a rotary knob – Snow, ECO, Normal and Sport. Snow is for, well, snowy roads. Eco provides the best fuel economy, but performance is unexciting. Response sharpens in Normal while Sport confirms that the M Hybrid is a sport sedan.

Completing the hybrid system is a 1.4-kilowatt lithium-ion battery pack positioned under the trunk’s floorboard. Like Nissan’s electric Leaf, the battery pack uses the company’s proprietary laminated-cell configuration that enhances battery cooling. Infiniti says the M35h can go 1.2 miles on electric power alone.

Most hybrid systems, including those built by Toyota/Lexus and Ford, are parallel systems, but use two motors and a planetary gearset. Since this type of system cannot decouple the engine and motor, efficiency is lower because of engine friction during electric drive conditions.

Infiniti isn’t the only carmaker to employ the P2 type of hybrid system, but its approach is different from the others. For example, Hyundai uses a separate belt-alternator-starter system, Volkswagen (Porsche and Audi) retains a conventional torque converter and BMW’s ActiveHybrid system does use a single-motor, 2-clutch, no-torque-converter system, but also (unlike Infiniti) adds a starter motor.

Lynne Says ….

Call me old fashioned, but I like chrome, and the M35h has just enough to please the eye. Infiniti’s stylists added it like a woman adds pearls to a black dress.

A premium car needs a strong face, and what a face. Infiniti’s signature double-arch, low-slung chrome grille sitting below a bulging hood conveys power when spied in a rearview mirror. Swept-back crystal-look Bi-Xenon headlights soften the grille’s impact.

Its balanced, rear-wheel drive proportions and stance, along with Infiniti’s trademark short front overhang and long hood leading back to a coupe-like slope, says the M Hybrid resides squarely in sport-sedan territory. Viewed from any angle, the styling is decidedly striking with muscular haunches punctuating its powerful stance.

The exterior’s curvaceous lines are reprised inside, most notably the design of the dual-cockpit dash and the swoops on the doors. The dash is a little too busy for my tastes, but control central is blessedly free of complication. Switchgear feels substantial and operates with a smooth deliberateness. The steering wheel tilts and telescopes and the serially adjustable leather seats are supportive in all the right places.

Like most manufacture-provided test drive vehicles, our M hybrid was equipped with all of the option packages: Technology, Deluxe Touring and Premium. Of all the added luxury and whiz-bang techno features – Intelligent Cruise Control, Distance Control, Active Trace Control – my favorite was the Blind Spot Warning, something every car of the future should include. When other cars are in the lanes adjacent to the M35h, lights in the A pillars appear and will flash, accompanied with an audio alert, if the turn signal is activated.

But there’s more. If a vehicle is in a blind spot and you begin a move towards its lane, the Blind Spot Intervention system automatically applies brakes on the opposite side of the car, prompting you to move back to the center of the lane.

I extend a mea culpa to Infiniti for questioning their claim that the M35h “is able to drive in electric only mode for as much as 50 percent of the time.” We selected Eco mode for the first three days of driving, tallied 113 miles of mostly in-town driving and, Wow!, the EV trip odometer recorded 55.4 miles – 49.1 percent solely on electric power.

In town, the hybrid system is an absolute paragon of smoothness, so much so that it is nearly impossible to feel the transition from electric power to engine power and vice versa. It surges impressively under full throttle, even in Eco mode, and delivers more than sufficient power to merge and pass, even with a full load of passengers.

On the highway, the car rides with supple smoothness. It’s neither BMW harsh or Lexus soft-edged comfort, and effectively soaks up bumps, expansion joints and other road irregularities.

The M35h melds equal measure of power, sport, luxury, technology and exceptional fuel economy – features I think place it on top of the luxury hybrid heap.

Larry Says ….

On a stunning fall Saturday morning, we drove south on I-5 from Olympia, Wash., and then headed east for some small town antique shopping. Mostly farmland, the two-lane blacktop roads were nearly deserted and lined with fields of yellow cornstalks, with occasional clumps of maples showing touches of autumn color.

The first 60 or so miles were near arrow straight with a few sweeping curves thrown in. During aggressive driving in the Sport mode, the M Hybrid hunkered down with the agility and enthusiasm of your favorite pooch on a dead run behind a terrified squirrel. The performance wasn’t a surprise, but lifting off the throttle was – the tach needle dropped to zero rpm, indicating that the car was running on electrons while in the Sport mode at speeds of 70-plus mph.

After finding a few “treasures” in a delightful small store, we altered our plans and drove northeast toward the foothills of the Cascade Mountains. The road quickly narrowed and ahead was several miles of tight, sweeping and off-camber corners with a discernible climb in elevation. The chassis answered each curve, each load shift and lateral thrust that was encountered. The rapid, upward climb brought out the car’s balance and the excellent match of chassis and powertrain. Understeer was faint, and there was enough power on hand to induce some throttle-on oversteer.

Slight body roll showed up during some cornering, but not once did I have to wrestle with the car. Infiniti’s electro-hydraulic steering was accurate, responsive and certain on center. Brakes had a natural feel rather than the pulsing, almost wooden feel of most hybrid regenerative brake systems.

We, reluctantly, said good-bye to the M Hybrid a couple days later after driving 283 miles, 121 of which were on battery power – an impressive 41 percent considering how hard the car was driven. Equally impressive was the gas engine’s fuel economy of 29.6 mpg, a tad better than the EPA’s 29 mpg combined rating.

The M35h is the antidote to the everyday mundane and joyless driving hybrids that poke along the streets and highways. Yes, it’s an expensive alternative, but with this hybrid, performance, luxury and fuel economy is not an oxymoron.

The Luxo Hybrid For You?

More stringent government regulations – lower emissions in Europe, higher fuel economy in the U.S. – are forcing automakers to turn to gasoline-electric hybrids as one of the solutions to meet the new rules. This includes cars in the luxury segment, which is beginning to fill up with powerful six-cylinder hybrid sedans, such as the BMW Active Hybrid 5, Lexus GS 450h, Porsche Panamera S Hybrid, Mercedes S400 Hybrid plus, the upcoming Audi A6 Hybrid and Acura RLX Hybrid.

The M Hybrid’s closest competitor is the Lexus GS 450h. All new for 2013, the Lexus sport sedan hybrid bests the Infiniti’s fuel economy with an EPA rating of 29 city/34 highway and 31 mpg combined. But sipping a little less fuel comes with a cost. Priced starting at $58,950, the GS 450h is nearly $7,000 more than the M35h. For the extra money you also get a car that isn’t as quick, is less engaging to drive and has a continuously variable transmission that feels like a rubber band when it accelerates.

Power is part of Infiniti’s persona, and putting muscle in the M35h doesn’t undermine the raison d’etre of gas-electric technology: saving fuel.

Infiniti M35 Hybrid Price As Tested
Manufacturer’s Suggested Retail Base Price $54,200

Technology Package $3,050

Deluxe Touring Package $3,900

Premium Package $4,200

Destination Charges $895

Total $66,245

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The new record (which doesn’t best a standing Guinness mark but rather establishes the original bar in the hybrid acceleration category,) was attempted to coincide with the release of the M35h in the U.K. The 5-seat luxury hybrid debuted in North America earlier this year, at a starting cost of $53,700. The car produces up to 360 combined horsepower between its gas engine and electric motor, and can accelerate from 0-62 in just 5.5 seconds. To put that in perspective, the Toyota Prius achieves 0-62 in 10.7 seconds—nearly twice the M35h’s time.

“You could feel the instant torque of the electric motor away from standstill – the car just leapt off the line,” remarked Pollard in an Infiniti press release. “But what impressed most was the Infiniti M’s duality of purpose: it might be quick, but it’s also comfy and very easy to drive.”

At an combined EPA-rated 29 mpg, the M35 hybrid’s appeal comes not from its ability to test the limits of overall sedan fuel economy, but its ability to match the performance of its luxury sedan competitors while delivering vastly superior efficiency. By comparison, the non-hybrid Infiniti M base model and competing Audi A6 sedan also achieve 5.5-second 0-62 times, but carry overall fuel economy ratings of just 21 mpg and 19 mpg, respectively. The M35h starts at a $6,000 hybrid premium over the M37.

Other hybrid records tracked by the Guinness Book include “best selling hybrid car”—which of course belongs to the Toyota Prius—and “largest parade of hybrid cars,” a record set earlier this year at the Green Drive Expo in Madison, Wisc.

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Meanwhile, there’s another track of innovation aimed not at revolutionary future technologies, but at reducing the cost of today’s most efficient cars that still run on gasoline. For example, what if a relatively simple change in the technology powering today’s hybrid cars—there are nearly 2 million gas-electric vehicles already on U.S. roads—could make them much more affordable and therefore nearly ubiquitous? How in the world do you disconnect hybrids’ high mpg from its higher cost?

With a single motor, two clutches and a standard transmission, it turns out. Mostly escaping notice, a new crop of 2011 hybrids—including the Hyundai Sonata Hybrid and the Infiniti M35 Hybrid—are using a second clutch to achieve the critical goal of separating operation of the gas engine and electric motor. Some existing hybrids already have a clutch to disconnect and reconnect the transmission from an engine and electric motor, which are integrated and bolted together. That’s Honda’s approach. Alternatively, using two electric motors and a special transmission, as Toyota and Ford do, achieves the same goal of freeing the electric motor from the engine—but at a higher cost.

However, these new parallel two-clutch systems—hence the name P2—could provide 95 percent of the fuel efficiency benefits of an expensive two-motor system, like the one in the Toyota Prius, but at cost reductions of one-third or more.

The P2 hybrids could match or even beat the cost of Honda’s simpler one-motor system, which has the major drawback of not being able to run the electric motor without simultaneously operating the gas engine. In fact, the P2 hybrids are similar to Honda’s IMA (Integrated Motor Assist) technology, but with the key advantage of a clutch allowing the gas engine to shut down, and the electric motor to do more of the work.

Driving Down Cost

“It’s the next evolution of hybrids,” said John DeCicco, senior lecturer at the University of Michigan School of Natural Resources and Environment. “What you have with this next round of systems is a lower cost solution to providing the efficiency benefit comparable to a two-motor powersplit system. That’s significant for public policy because it makes higher Corporate Average Fuel Economy (CAFE) levels less costly to achieve.”

Hyundai says the Sonata Hybrid can travel up to 75 mph purely on electricity. It also means better efficiency on the highway, rather than the city. Other advantages include the ability to recapture more regenerative braking, eliminate engine drag, and to increase the size of, and acceleration from, the electric motor. It also paves the way to plugging into grid energy and storing that energy in larger batteries—but that would defeat its most compelling advantage: reducing cost.

A September 2010 technical paper—co-published by the U.S. Environmental Protection Agency, National Highway Transportation Safety Administration, and the California Air Resources Board—compared manufacturing costs of various hybrid and electric cars. It showed the price of batteries for P2 hybrids at a quarter the cost of a Volt-like plug-in hybrid and about a tenth the cost of 100-mile electric vehicle, projected all the way out to 2025.

Additional cost advantages also come from being able to use standard off-the-shelf transmissions, and eliminate the use of a torque converter.

Preferred Approach for New Hybrid-Makers

“Look at the manufactures who have not already made a substantial investment in hybrids, who have not locked themselves to the [Honda] IMA or [Toyota/Ford] powersplit design,” said John German, senior fellow for the International Council for Clean Transportation. “Every one of those manufactures is coming out with P2 systems. And it’s not just Hyundai, Infiniti and Volkswagen that have products hitting dealerships this year. Mercedes and BMW are also coming out with P2 systems, just not this year.” To German, this is clear evidence of the cost and efficiency advantages of the one-motor, two-clutch approach.

German believes it will take five to seven years before these new hybrid-makers catch up with Toyota’s technology. “Toyota is so much further down the learning curve, they’re operating at such higher volumes,” acknowledged German. Yet, he believes that by 2020, these P2 hybrids will penetrate the mass market. “They will become standard on vehicles.”

That timing is significant, because the California Air Resources Board, NHTSA, and EPA are all working on legislation out to 2025. Widespread adoption of hybrids in the 2025 timeframe—assisted by a smaller number of electric and fuel cell cars—would make a fleet average of 60 mpg highly achievable at cost. At that point, German believes P2 hybrid systems could mean cost-competitive 40-mpg SUVs.

“Hybrid systems like the P2 will be the mainstay drivetrain to achieve the next round of 2025 standards just like the turbocharged gasoline direct engines are the for the 2016 standards,” said Roland Hwang, transportation program director for the Natural Resources Defense Council.

“Engineering advances are lowering the cost of higher fuel economy levels,” DeCicco said. “Automakers might say that they’ve already picked all the low-hanging fruit. What we’re seeing now is that the tree of innovation grows new low hanging fruit every year.”

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Other hybrid makers seem to be moving in the same direction—perhaps in anticipation of new regulatory frameworks that could mandate such systems on all vehicles capable of driving in near-silence.

At its debut at the Los Angeles Auto Show, it was revealed that the Kia Optima Hybrid, which will hit the market sometime next year, will also come with what the company calls, “Virtual Engine Sound System.” That system will be based on one that Kia’s parent company, Hyundai, developed for its BlueOn electric vehicles, which are currently in fleet testing.

The M hybrid’s warning system is also derived from one developed for its parent label’s electric vehicle models. The Nissan LEAF was the first Renault-Nissan model to employ VSP, which consists of a computer-controlled synthesizer running through a speaker mounted into the vehicle’s front bumper. Sound is produced whenever the vehicle is operating at speeds of lower than 20 mph—after which the natural sounds of a vehicle encountering air resistance and friction are sufficient to alert pedestrians to its presence.

More Systems on Their Way

Though Infiniti and Kia announced their standard warning systems just recently, they’re far from the only carmakers offering or exploring artificial noises for hybrid and electric vehicles. The Chevy Volt includes GM’s Pedestrian-Friendly Alert System (which is currently driver-activated, but may become automatic in future models.)

Toyota has also begun offering optional pedestrian alert systems on its hybrids in Japan, where regulators moved recently to require carmakers to provide optional warnings on all hybrid and electric vehicles. Toyota is said to also be considering offering the option on vehicles sold in the United States.

Toyota’s new pedestrian alert sound for the Prius.

Driving the emergence of these systems are worries that the spread of near-silent vehicles could pose a threat to the pedestrian safety—particularly for the visually impaired. While many plug-in vehicle advocates have called these fears overblown, carmakers seem resigned to the prospect that one day, this relatively inexpensive (and by most accounts unobtrusive) feature, could become the industry standard—if not the law.

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A long list of electric cars is likely to upstage the 300-horsepower M35h in Paris, so green enthusiasts might overlook the M35h as just another car with a gas engine. Yes, the electric car concepts in Paris will promise zero emissions and zero petroleum, but like a lot of hype at the big auto shows, very few of the models will go into production. Meanwhile, the Infiniti M35h is definitely going on sale next spring in Europe, and in the United States probably later in the year. Its meaning to the green car movement shouldn’t be easily dismissed.

Hybrids for Size, Speed and MPG

If Nissan, the most ardent of electric car champions, is trumpeting the benefits of a gas-electric hybrid, it must say something about the enduring role that hybrids can play in improving the fuel efficiency of faster and more spacious cars that fuel up at the pumps instead of the plug. We’re not saying that Infiniti won’t offer a pure electric car. Bring it on! Infiniti has been floating the idea for most of this year. In fact, a few days ago Infiniti released a sketch of an EV that it promises for 2013, but we’ll have to wait and see how this idea materializes.

Pure-electric versus hybrid-electric is not an either-or decision. It’s both, with hybrids apparently headed for more mainstream luxury buyers who want or expect more size, power, and luxury features—with less fuel consumption.

Consider this: The Infiniti M35h will take the efficiency of the gas-powered Infiniti M sedan from the low 20s in combined city/highway mpg to the low 30s. At the same time,
the M35h will be the fastest accelerating Infiniti in Europe. Even though sales of the M35h Hybrid will be relatively low, Nissan engineers designed the M hybrid system to fit all of Infiniti’s rear-wheel-drive models, including the G sedan and coupe and the EX and FX crossovers. That suggests a strong hybrid path for the Infiniti luxury line—similarly to what Lexus and Mercedes have said: all their luxury models will soon have a hybrid option.

The luxury market isn’t going away, and why wouldn’t the luxury buyer want what the Infiniti hybrid system can offer?

• 0 – 60 miles per hour is less than 5.9 seconds
• Fuel economy that’s around 50 percent better than the gas-powered version
• Great aerodynamics (Cd: 0.27)
• Powerful lightweight lithium ion batteries (1.3 kWh’s worth)
• Top speed of 155 miles per hour

These attributes are delivered via a 3.5-liter V6 engine with a 50 kW electric motor integrated into its seven-speed automatic transmission. The architecture is a front-engine, rear-drive-only layout with a one-motor/two-clutch system. An electronically controlled transmission enhances responsiveness for a sportier driving feel.

There’s still not a definite date for a sales launch of the Infiniti M35h in North America. Prices and detailed specifications are not expected until early 2011.

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The Infiniti M35 hybrid uses a front-engine rear-wheel-drive approach—with a one motor-two clutch system. The first clutch is installed between the engine and the electric motor. This clutch allows the full decoupling of the V6 when running in electric modes—in order to reduce mechanical drag and boost the efficiency of the electric motor. The M35 is one of the first hybrids to use lithium ion batteries.

Pricing, MPG and other details are not yet available. The base MSRP for the 2010 conventional M35 is $45,800. The M35 Hybrid should be priced just below $50,000 and will likely qualify for a tax incentive of about $1,000. Nissan first unveiled the Infiniti M35 Hybrid at the 2010 Geneva Motor Show in March 2010

Infiniti touts the new luxury hybrid as giving V-8 performance with four-cylinder fuel economy.

Rear-Wheel-Drive Hybrids on the Way

As Infiniti prepares for the unveiling of the M35 Hybrid, Nissan engineers are already planning other hybrid models. Larry Dominque, Nissan North America’s vice president of product planning for the Americas, says the M hybrid system was designed to fit all of Infiniti’s rear-wheel-drive models, including the G sedan and coupe and the EX and FX crossovers.

Nissan’s leadership has repeatedly made the argument that hybrids are not the answer to the environmental challenges facing the automobile industry—and that only pure all-electric cars represent the necessary shift to oil- and emissions-free motoring. The company’s small all-electric Nissan LEAF will debut in late 2010. The Nissan showroom will soon be transformed by its hybrid and electric offerings.

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UK’s Top Gear reported a couple of weeks ago that a small electric Infiniti hatchback is slated for 2014. The small Infiniti EV will share the Leaf’s platform but will be more powerful. According to Top Gear, Nissan will produce a next generation battery suitable for the increased power. Why a hatchback and not a larger high-performance electric vehicle? There are two reasons, according to an Infiniti executive: to attract the biggest market, and because bigger vehicles are too heavy for today’s batteries.

H is for Hybrid…And Horsepower

Consumers looking for a larger model, and more oomph, will need to look to Infiniti’s hybrids. In October 2009, Nissan announced that it will produce a hybrid gas-electric version of its Infiniti M luxury performance sedan, to go on sale in Europe in 2011. It will likely be sold in the United States as well, although no date has been set for North American distribution.

Nissan unveiled the Infiniti M35 Hybrid, its first hybrid, at the 2010 Geneva Motor Show in early March. Nissan’s leadership has repeatedly made the argument that hybrids are not the answer to the environmental challenges facing the automobile industry—and that only pure all-electric cars represent the necessary shift to oil- and emissions-free motoring. Yet, many luxury buyers insist on the same level of space, reliability and horsepower that luxury brands offer—with more mileage on top.

The M35 Hybrid’s engine, borrowed from the conventional M sedan, is a 3.5-liter V6, with the addition of a 68 horsepower electric motor and hybrid drive system. The Infiniti M35 hybrid uses a front-engine rear-wheel-drive approach—with a one motor-two clutch system. The first clutch is installed between the engine and the electric motor. This clutch allows the full decoupling of the V6 when running in electric modes—in order to reduce mechanical drag and boost the efficiency and performance of the electric motor.

Pricing, MPG and other details are not yet available. The base MSRP for the 2010 conventional M35 is $45,800. The M35 Hybrid should be priced just below $50,000 and will likely qualify for a tax incentive of about $1,000.

Infiniti Essence concept

Infiniti has also been showing the Infiniti Essence Hybrid coupe concept for about a year. The Essence Hybrid, which is unlikely to go into production, is the opposite end of the spectrum from a mass-market practical hatchback. It’s the world’s most powerful hybrid car with a total of 600 horsepower combined output from its V6 twin turbo and electric motor.

When the Essence was unveiled in Geneva in March 2009, UK’s Autocar reported that all Infinitis will be hybrids within 10 years—we’re talking 2020—according to Francois Bancon, the company’s head of advanced product planning. He said that he wants every Infiniti model to be available with a parallel series hybrid powertrain.

When you piece these reports together, you get a glimpse of Infiniti’s electric-drive roadmap: a small all-electric hatchback by 2014—with some of the traits of the upcoming Lexus CT 200h—and a slow rollout of luxury hybrids that offer high performance while minimizing fuel consumption. It’s not a coincidence that Infiniti’s electric-drive roadmap matches where the overall industry is going: some electric cars and a whole lot of hybrids.

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Nissan unveiled the Infiniti Essence concept car at the Geneva International Motor Show on Tuesday signaling its intention to produce the first vehicle to combine hybrid and diesel technologies. The vehicle itself is typical car show eye candy: a sleek high-horsepower turbocharged two-seater that will never go into production.

The luxury fantasy comes complete with lithium ion batteries and Louis Vuitton luggage designed specifically for the Infiniti Essence. (Apparently, Nissan overlooked the need for adequate trunk space in the low-slung performance hybrid—and had to create tailor-made baggage and a roll-out shelf.) Drawing comparisons to the sleek Fisker Karma… such ostentation seems out of touch with tough economic times—until you consider the high-mpg potential of a diesel hybrid.

The combination of a hybrid system, an efficient diesel engine, and an aerodynamic design could make the Toyota Prius seem like a gas-guzzler. In Europe, where diesels represent half of the car market, the idea of diesel-hybrids gets repeatedly paraded out at car shows—but the problem is cost. Hybrids are more expensive than conventional cars. Diesels are also more expensive. And a diesel-hybrid adds cost upon cost beyond practicality.

The Infiniti Essence signals Nissan’s interest in a performance hybrid, and in combining diesel and hybrid technology for the luxury market.

A Nissan spokeswoman told Reuters: “Customers willing to pay for a diesel hybrid would be in the luxury segment.” She said Nissan plans to launch a production version of the car with a V6 diesel hybrid system. The company gave no indication of the car’s price or any timetable for production.

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Nissan plans to infuse hybrid technology into their uplevel product line, Infiniti. The idea is to utilize the same strategy Toyota took with their luxury Lexus division. It will allow Infiniti to continue producing high-performance premium automobiles while reducing emissions and increasing fuel economy in comparison to their gas-powered counterparts. Nissan Engineers are still currently developing their in-house system and estimate that it will be ready for implementation around 2010, at which time it will debut in the Infiniti brand.

Ultimately, the endeavor could restructure Nissan’s economic calculations regarding hybrids. Carlos Ghosn, Nissan’s chief executive officer, has only recently become convinced that hybrid gas-electric vehicles would ever make economic sense. Ghosn told Automotive News, "I don’t think I was against it. Hybrids are very promising."

Nissan currently sells a hybrid model, the Altima Hybrid, but that vehicle was developed by licensing Toyota’s gas-electric technology. Nissan could presumably recoup much of the costs of its own hybrid technology by applying it to more than one platform. Nissan also plans to be selling pure-electric cars by the end of the decade, according to Carlos Tavares, vice president for global product planning.

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