Nissan to offer Electric Vehicle

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Electric Nissans Planned in U.S. by 2010
By EDWARD TAYLOR
May 2, 2008; Page B2

CASCAIS, Portugal -- Nissan Motor Co. Chief Executive Carlos Ghosn said he is preparing to take advantage of a "mass market" in electric vehicles he expects to emerge by 2012.

Nissan, an alliance partner of Renault SA of France, will launch electric vehicles in the U.S. and Japan in 2010, and globally by 2012, Mr. Ghosn said at a Nissan event in Portugal. He said he expects the market for electric vehicles to grow strongly due to high oil prices, a new awareness of environmental issues and breakthroughs in battery technology.

Eventually, Nissan "will have a whole lineup of electric cars," he said. "The electric car is not a niche product for us."

Mr. Ghosn said battery-technology advances have given the electric car sufficient range to make it a viable mode of transport for the shorter journeys often made by commuters in big cities. Globally about 10 million vehicles are being used in this way, he said.

High oil prices and the willingness of governments to give tax incentives for so-called zero-emission vehicles can change the economics of owning an electric car and make it "cheaper than gasoline," Mr. Ghosn said.

Nissan and Renault are in talks with "companies, governments and cities," to see what kind of incentives can make the introduction of zero-emission vehicles more attractive, he said.

Mr. Ghosn expects new areas of business will open as electric vehicles become more widespread, including making the batteries and providing access to batteries and electricity. Moving beyond merely making cars could see "a change of the business model" in the auto industry.

"In some ways it could move more toward how a mobile-phone operator works, because there the handset is only one part of the business; the rest is providing services to customers," said Mr. Ghosn.

One drawback of electric vehicles has been battery capacity, limiting their range. Another is that recharging a battery traditionally takes hours, far longer than to refuel a car with gasoline. Nissan and Renault are looking at ways to fix that. Renault will use a battery provided by Nissan for an electric vehicle to be launched in Israel, Mr. Ghosn said.

Mr. Ghosn reiterated that Nissan is open to expanding its alliance with Renault to other car companies, but he said that would happen only if it created value for Renault and Nissan's stakeholders.

Write to Edward Taylor at edward.taylor@wsj.com