Ghosn vows: 'Battery Leaf will be affordable'
FIVE-SEATER HATCH 'GOOD FOR 160KM'
November 14, 2009
Nissan will keep the price of its upcoming battery-powered Leaf competitive with similar-sized cars and expects to make money on the vehicle despite the cost of its launch
That's what chief executive Carlos Ghosn said on Friday about the five-seater hatch that is claiming full-charge range of 160km/h and which should "cost only one or two percent more than traditional combustion engine vehicles in its class".
"It's too early to give the pricing on the vehicle," Ghosn said, "but there will be no surprise. We know the Leaf will be the key to the mass market."
Nissan expects the car to be the first affordable, mass-market battery car when it goes on sale in the US, Japan and Europe by the end of 2010.
Nissan has bet heavily on electric cars and expects that by 2020 10 percent of car sales worldwide will be battery vehicles. It's announced a series of partnerships with utilities and government agencies to advance technology where it believes it has a chance of seizing market leadership.
The automaker said on Friday it would co-operate with Houston-based Reliant Energy, a subsidiary of NRG Energy, in developing a charging infrastructure for battery cars at homes and near office buildings
Ghosn, speaking to reporters at an event outside the Dodger Stadium to kick off a US marketing tour for the Leaf, said Nissan would roll out the car slowly in the US market to get more feedback from consumers.
The Leaf has been designed to draw power from a battery-pack developed with Japan's NEC that Nissan has said can be recharged overnight on a 220V connection.
Nissan has taken $1.6-billion in low-cost loans from the US Department of Energy to revamp a plant in Smyrna, Tennessee to make the Leaf. The first units to be soldin the US, however, will be imported from Japan.
Nissan's rivals have pushed competing battery-powered technologies. Toyota dominates the market for traditional hybrid (battery/combustion engine) vehicles and has floated plans for a broader range of vehicles under the Prius name.
Others, such as General Motors and Fisker Automotive, are banking on plug-in designs that rely on batteries for short drives but carry a small petrol engine to recharge the batteries on longer trips.
'IT'S ALL ABOUT EIGHT CARS'
Ghosn, who also leads Nissan's controlling partner Renault, said the key to bringing down the cost of battery cars would be to spread development costs across as many as eight vehicles for the two companies.
"We think this technology is a technology we control, but we need scale. And that's why today we are building an overall capacity between Renault and Nissan of 500 000 cars and batteries a year for the US, Europe and Japan.
"It is not about one car, it is about four cars for Nissan and four cars for Renault."
Leasing the car's batteries is a way to bring down the upfront cost, analysts say, and Ghosn said he preferred to lease batteries because Nissan could then control replacements as technology improved.
'WE HAVE TO MAKE MONEY'
Ghosn believes the Leaf will be profitable but General Motors, by contrast, does not expect to make money on the first sales of its plug-in Chevrolet Volt, expected to cost near $40 00O when it launches in late 2010.
He warned: "We have to make money - if we don't the technology is doomed.
"Everything we are doing today - and that's one of the reasons we are negotiating with the US government - is to make sure this technology can continue to develop.
"We have a reasonable return on our investments and continue to develop the technology but the consumer has to pay a reasonable price." - Reuters
Would you be in the market for a Leaf if the price were reasonable in SA? Tell us in the Readers' Comments box below.
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NISSAN LEAF: Corporate boss Carlos Ghosn says the five-seater hatch, due for launch in various markets in 2010, will be priced close to conventional cars in its class. |
Nissan will keep the price of its upcoming battery-powered Leaf competitive with similar-sized cars and expects to make money on the vehicle despite the cost of its launch
'We know the Leaf will be the key to the mass market' - Carlos Ghosn
.That's what chief executive Carlos Ghosn said on Friday about the five-seater hatch that is claiming full-charge range of 160km/h and which should "cost only one or two percent more than traditional combustion engine vehicles in its class".
"It's too early to give the pricing on the vehicle," Ghosn said, "but there will be no surprise. We know the Leaf will be the key to the mass market."
Nissan expects the car to be the first affordable, mass-market battery car when it goes on sale in the US, Japan and Europe by the end of 2010.
Nissan has bet heavily on electric cars and expects that by 2020 10 percent of car sales worldwide will be battery vehicles. It's announced a series of partnerships with utilities and government agencies to advance technology where it believes it has a chance of seizing market leadership.
The automaker said on Friday it would co-operate with Houston-based Reliant Energy, a subsidiary of NRG Energy, in developing a charging infrastructure for battery cars at homes and near office buildings
Rollout will be slow to enable customer feedback
.Ghosn, speaking to reporters at an event outside the Dodger Stadium to kick off a US marketing tour for the Leaf, said Nissan would roll out the car slowly in the US market to get more feedback from consumers.
The Leaf has been designed to draw power from a battery-pack developed with Japan's NEC that Nissan has said can be recharged overnight on a 220V connection.
Nissan has taken $1.6-billion in low-cost loans from the US Department of Energy to revamp a plant in Smyrna, Tennessee to make the Leaf. The first units to be soldin the US, however, will be imported from Japan.
Nissan's rivals have pushed competing battery-powered technologies. Toyota dominates the market for traditional hybrid (battery/combustion engine) vehicles and has floated plans for a broader range of vehicles under the Prius name.
Others, such as General Motors and Fisker Automotive, are banking on plug-in designs that rely on batteries for short drives but carry a small petrol engine to recharge the batteries on longer trips.
'IT'S ALL ABOUT EIGHT CARS'
Ghosn, who also leads Nissan's controlling partner Renault, said the key to bringing down the cost of battery cars would be to spread development costs across as many as eight vehicles for the two companies.
"We think this technology is a technology we control, but we need scale. And that's why today we are building an overall capacity between Renault and Nissan of 500 000 cars and batteries a year for the US, Europe and Japan.
"It is not about one car, it is about four cars for Nissan and four cars for Renault."
Leasing the car's batteries is a way to bring down the upfront cost, analysts say, and Ghosn said he preferred to lease batteries because Nissan could then control replacements as technology improved.
'WE HAVE TO MAKE MONEY'
Ghosn believes the Leaf will be profitable but General Motors, by contrast, does not expect to make money on the first sales of its plug-in Chevrolet Volt, expected to cost near $40 00O when it launches in late 2010.
He warned: "We have to make money - if we don't the technology is doomed.
"Everything we are doing today - and that's one of the reasons we are negotiating with the US government - is to make sure this technology can continue to develop.
"We have a reasonable return on our investments and continue to develop the technology but the consumer has to pay a reasonable price." - Reuters
Would you be in the market for a Leaf if the price were reasonable in SA? Tell us in the Readers' Comments box below.
SUBMIT YOUR COMMENT!
Showing page 1 of 1 comment pages, 4 total comments
12 Weeks ago Alastair Lewis wrote :
The Leaf is the first electic car to come close to replacing ICE propelled vehicles. Supporting this initative to produce a non-fossil fuel vehicle will enable the producers of such vehicles to further invest in battery technologies, thus adding to the power (extra load capacity) and mileage. I would certainly buy one when the 'quick-charge' units have been rolled out across the main transport routes - thus making long-distance travel feasible. Although even before such a roll-out is acoomplished, this car will suffice as a second family car for grocery shopping, school runs and so on.
12 Weeks ago Anonymous wrote :
All these battery-car manufacturers are missing the point. With a range of 160km, it's only good for daily commuting. Who needs a car with five seats for commuting? Make it smaller, cheaper, maybe even small enough to lane-share (like motorcycles). There needs to be an incentive to buy these cars. The higher prices completely wipe out fuel cost saving benefits
12 Weeks ago Happy with I.C. wrote :
It would seem that, in spite of the fact that these battery-powered vehicles will be competitive in price compared with internal combustion units, the prices will still be prohibitive for the average person. Also, seeing that the power to keep these vehicles charged comes from burning of fossil fuels, is there any real ecological saving or improvement in the environment taking place: is the whole exercise really worthwhile??? Will someone please comment on this comment?
12 Weeks ago John Cameron wrote :
I am so sick of all good ideas (vehicle wise) being either TOO expensive or CONCEPT cars as seen overseas (priced in dollars) - never to reach South Africa . Apparently a battery-powered car was built in Cape Town ages ago - and had to be sent overseas for sales... what's up with that? Give us a car that is under R100 000 and is fully battery-powered! Bye bye petrol sales! Isn't it funny how these battery cars will probably only be sold to people who can afford tons of petrol and don't care about saving money (by not using petrol).
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