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Nissan Opts for City Electric Car, not Hybrid
Sectors: Auto/Tire/Trucks
Symbols: HON, NSANY, TM
As reported in today’s New York Times Carlos Ghosn the CEO of Nissan and
Renault stated that Nissan will produce an all electric car with a range of 100
miles (U.S.) or 50 miles (E.U.) for release in 2010 - 2012. Ghosn believes the
plug in electric hybrid is a mistake and that his all-electrics will be
profitable, not a “loss-leader.”
How can a mere consumer-observer like myself question the judgement of the
reigning guru of the global auto industry? Still…if I were on a lot and had a
choice of an all electric for $30,000 that could go only 100 miles before
needing to be recharged or a $40,000 hybrid that would go 40 or 50 miles on the
battery alone and then 300 miles more when the gas motor kicks in to re-charge
the battery - I don’t know.
Maybe it depends on whether the car is a secondary, only-around-town vehicle
or if it needs to do everything. If I had two cars I might have one of each so
maybe there is room for both. But if I had only one car, it would have to be
the PHEV. I certainly am not going to wait for some battery exchange
infrastructure to be built and then count on it being wherever I need it.
All this assumes gas cost well over $6 a gallon, probably closer to $10.
That’s what I am anticipating to happen starting around 2010 and it must be what
Ghosn thinks is likely too. I doubt he’d sell a lot of limited-range electric
cars if gas stays about where it is or just creeps higher and certainly not if
gas goes back to $3.
On a different subject, Ghosn mentioned that the automobile industry’s center
of gravity is moving from Detroit to Tennessee. With all three Detroit based
American car companies in danger of bankruptcy, it sounds like a permanent move.
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