The Tokyo based automaker intends to start selling its zero-emission cars in the home market and in the United States in 2010. Thereafter, in 2012, a global launch of the vehicle will follow.
Huge volumes strategy
Talking of the company’s plans to be a pioneer as a mass marketer when it came to electric cars, Carlos Ghosn, chief executive of Nissan, said, “We have a different strategy from other manufacturers when it comes to electric cars. You have to go mass-market to get the cost benefit.”
Ghosn said of the pricing strategy, “If it's not affordable, it's not going to work. We are not going to come with a very high price. We are going to come with a reasonable price. We are here to mass market them."
The company is expected to become one of the first beneficiaries of the $25 billion loan program carved out by the Obama administration to assist automobile manufacturers retool their factories and churn out more fuel-efficient vehicles.
Nissan is in the process of setting up a battery plant for its electric cars in collaboration with NEC Corp (TYO: 6701) in the Kanagawa region of Japan. The procurement of batteries is one serious threat that could adversely impact the electric car business.
Till the time the Tennessee plant is up and running, the Japanese automaker will export the cars to the United States.
Deutsche Bank’s Kurt Sanger, said, “There is a lot of uncertainty about the future supply of batteries. A lot of what we are hearing are business plans, not production plans – and there is an important difference.”
Late entrant
Arc rivals Toyota Motor Corporation (TYO: 7203, NYSE: TM) and Honda Motor Company (TYO: 7267, NYSE: HMC) have already launched their fuel-saving, gasoline-electric hybrids, under the brand names Prius and Insight respectively.
Meanwhile, Detroit based General Motors (Pink Sheets: GMGMQ) is contemplating a 2010 launch of its plug-in Chevy Volt.
Edwin Merner, analyst at Atlantis Investment Research Corp. in Tokyo, said of Nissan’s timelines, “They’re late on the electric car.”
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