Nissan CEO: EVs Not A Competitor To Gasoline-Engine Cars Page 2

February 12, 2010
nissan leaf ev 028

nissan leaf ev 028

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Nissan has invested about six billion dollars in vehicle and battery-pack design as well as infrastructure, to prepare to build up to 500,000 electric vehicles, along with just as many battery packs per year. Renault will be the first to the mass market, with its 2011 Fluence ZE. Following it, in the U.S. market, will be the 2011 Nissan LEAF, appearing with limited availability at first but offered on the mass market for 2012.

The rental-car giant Hertz just announced that it would rent the Nissan LEAF at select locations in the U.S. and Europe beginning next year.

Ghosn said that his company is at the head of the electric-vehicle transition "because we're the only one investing in capacity, so we're going to be the only one with cars on the streets."

"So what you're going to see is not one electric car, a line of electric cars—four for Renault, four for Nissan—addressing different kinds of needs." Ghosn elaborated that design and the brand will still matter just as much with EVs, and selecting a car won't be anything like appliance shopping anytime soon. "There is an emotional involvement with cars, even though it's an object."

For the auto industry as a whole, Ghosn estimated that 3 to 4 billion dollars are being invested each year into batteries, and he suspects that a lot of battery makers are sitting on developments that are a leap ahead of what's being discussed now in EVs.

"I think those who have made a lot of progress are not talking about them too much because they want to put them in the car and they want to keep a competitive advantage," he said. "But you're going to see that in a five-year timeframe we've made huge and tremendous improvements in the batteries."

"We've probably divided the cost by three, we've probably reduced the size by as much, even the range today is probably much more reliable than before," said Ghosn, further hinting that "there are plenty of improvements in terms of safety, reliability, cost, and weight which have been done…and it's not finished." A second-generation version of Nissan's proprietary battery pack, produced by a joint venture with NEC, is reportedly in the works and the 2012 Nissan LEAF has been designed to easily accommodate a battery change.

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[BBC's The Interview]

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