Nissan ready to make 500,000 batteries a year when demand is there
Nissan CEO Carlos Ghosn with Leaf EV - Click above for high-res image gallery
You certainly can't argue with Carlos Ghosn's commitment to battery-powered vehicles. No one else in the auto industry has placed such a huge bet on plug-in vehicles. Renault has committed to four different battery-powered vehicles in the next few years, and Nissan has committed to three and possibly a fourth. Building so many EVs will require an awful lot of advanced batteries and Ghosn has been lining up the necessary financing to build battery plants in the United States and Europe in addition to Japan.
Speaking in China this week, Ghosn told reporters that his company has lined up the necessary resources to build up to half a million batteries a year if demand warrants it. Regardless of what one thinks of the merits of plug-in vehicles, Ghosn is no fool and won't actually start building the capacity for the batteries until the sales volumes justify it. To make that happen, Ghosn says Renault and Nissan will only sell EVs in regions where there are government incentives, recognizing that large numbers of people will not buy until the cars are cost competitive up front.
Gallery: 2010 Nissan Leaf EV
[Source: Reuters]
Reader Comments (Page 1 of 1)
Tohe 7:09PM (11/01/2009)
"To make that happen, Ghosn says Renault and Nissan will only sell EVs in regions where there are government incentives, recognizing that large numbers of people will not buy until the cars are cost competitive up front."
That is the perpetual discussion we have often had here at ABG. The Government has to recognize the long term cost of emissions and tax them accordingly. Unfortunately rising gas tax comes at the expense of political capital, it is a very unpopular measure against a well funded interest. But I believe that a strong case could be made in front the people. One that conveys the devastating economical impact of the usage of Oil, how it affects National Security and threatens the Environment, but more importantly, one that shows people how all these things will ultimately reflect on their pockets. Being proactive will save us money in the end.
Mr. Ghosn understand the viability of EVs hence his bid on them, it is only reasonable that most Governments would want to be independent from oil.
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Boyprodigy1 10:01PM (11/01/2009)
Man as much as I would love to believe that, people threw a fit because secretary of energy Steven Chu told them to paint their roofs white (something practical that saves energy and almost anyone can afford to do) calling him out as impractical and a complete idiot.
Not everyone in the US is as educated or knowledgeable about the importance of an energy conversion HERE and NOW as the people on this blog. They just don't get it. I think they would take it worse this time around especially when you explain to them that it IS going to cost them money.
That said, I am all for this push. We need energy independence, if not for global warming or national security, for our own wealth. Yeah, I am superficial enough to say that I want to have more money in this country. Lets hope other people agree with you and I though and prove me wrong...
jake 10:14PM (11/01/2009)
It's the same argument. It seems people are more accepting of incentives/subsidies than taxes. You have people complaining about it (sometimes you see them on the internet), but not nearly enough to overturn the incentives/subsidies. The gas tax is different. I would guess there will be very visible outrage if we greatly increase the gas tax. So incentives/subsidies are still the path of least resistance.
Boyprodigy1 10:29PM (11/01/2009)
@ jake
The only problem with that is that those subsidies would cut down gas consumption and lower prices of gas, which would be welcomed, but to an extent that the transition would be slowed. What would have to happen would have to be a combination of what you are saying and what tohe said. Combine gas taxes with (maybe use them to pay for) subsidies for alternatives. Make gas artificially the same price as it would be, or at least keep it on a steady rise. I'm still not sure how people would react to that; It probably wouldn't be happy though.
Tohe 11:53PM (11/01/2009)
@Boyprodigy1
I agree a combined effort, perhaps in the form of stages, where subsidies come first, followed by a later push to raise gas taxes.
I'm just frustrated, because there is the disparity between what we pay at the pump and what gas really costs us. This is why I want people to become aware of the real cost of gas. I want EPA to report how much of their budget goes to tackling gas provoked issues. I'd like the U.S. Department of Defense to tell us how much of their immense budget is spent neutralizing threats founded by US oil imports. As well as all other related expenses sponsored by the our Government.
I firmly believe that by publishing the real cost of gas, we could take a first step in changing the minds and the hearts of the majority of Americans, and in the process disarm the opposition.
Andy 12:10AM (11/02/2009)
Does anyone think the public would accept higher taxes on fossil fuel, if every cent of the extra tax income was spent on plug-ins and renewable energy?
I don't advocate 1c of additional net tax. It's more like a transfer of wealth from the fuel inefficient to fuel efficient. There is incentive to conserve and incentive to develop alternatives.
It makes perfect sense to me, but I fear it will not make any sense at all to a significant faction of the population.
jpm 7:41PM (11/01/2009)
that you gorr?
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Nick From Montreal 8:29PM (11/01/2009)
Ghosn is only making official what others don't dare to say: EVs have to be supported by tax credits for the first few years. This will have the nice side-effect of exposing governments that are actively blocking EVs for the benefit of the oil industry (cough! Australia...Canada...cough!...).
It's hardly a risky move: there's already tax credits in the US, Japan, France, Germany, Spain and Israel. That's a pretty good start.
Loving this guy more everyday. I see why the Japanese public loves him so much. He totally breaks away from the hypocritical double-peak & foot dragging we're used from Toyota and Honda.
Go Carlos!
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jpm 8:35PM (11/01/2009)
Well said. Nissan and this guy are my favorite among car co.s right. Let's hope he can deliver in the coming few years.
Andy 12:13AM (11/02/2009)
They are both off topic and hard to understand.
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Nick 12:26AM (11/02/2009)
Carlos Ghosn, now that's a visionary man willing to make bold decisions.
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Stan Peterson 1:24PM (11/02/2009)
Why is it that other wise rational people assume that raising taxes does anything other than reduce available disposable income and thus reduce demand for EVERYTHING. And in this case, BEVs as well.
The experience every where is confirmatory.
The fools that say other wise have to produce evidence from Europe to the contrary, where extraordinary fuel taxes encourage niggardly, but nevertheless polluting cars. But little thrust for hybrids, EREVs, BEVs or any other "advanced propulsion" methods, that supposedly would be encouraged.
The EU experience with reduced pollution vehicles is also extremely poor. Some EU apologists argue that reduced disposable income requires that they not add too much to the price of autos by requiring costly emission equipments. Horse puckety! EU VI standards to be adopted in 2015, won't even equal the US Tier II standards adopted in the early Reagan Administration, back in historic antiquity of 1980, some 29 years ago.
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