Nissan: Serious About EV Leadership

Nissan (NSANY) is serious about being the leader in electric vehicles by taking a three-step approach: (1) developing a charging infrastructure, (2) seeding the market with EVs in 2010, and (3) leading in EV manufacturing volume in 2012. The initial vehicles show-off a new body design, be freeway speed, and have a 100-mile range.

In August, Nissan unveiled all-electric and hybrid electric prototype vehicles, both powered by advanced lithium-ion batteries from the Nissan-NEC joint-venture, Automotive Energy Supply Corporation.

Friday, at a Nissan reception, I discussed product strategy with Mark Perry, Nissan Director of Product Planning, and with Alan Buddendeck, Vice President of Corporate Communications. Nissan is serious about being the leader in electric vehicles. Nissan will be ready with exciting electric vehicles in 2010. The company expects the market to take only two years from that point to be ready for volume buying. A public charging infrastructure will be important to many buyers.

Nissan will face serious electric vehicle and plug-in hybrid competition from Toyota (TM), GM (GM), BMW, Mercedes, Think, Tesla, and a number of exciting smaller innovators. Nissan plans on leading by focusing on zero emission vehicles [ZEV], rather than focusing on plug-in hybrids. Longer term, Nissan expects to see many urban centers, such as London, where only ZEV will be exempt from expensive daily congestion fees.

The Renault-Nissan Alliance has begun ZEV initiatives in Europe and Asia including Israel, Denmark, Portugal, Monaco, Japan, and with French electric utility company EDF. Now they are forging alliances in the United States.

With Nissan USA located in Tennessee, it is seeing strong support there for a statewide charging infrastructure. Tennessee Governor Phil Bredesen stated, “Our clean-energy future depends on our ability to find real strategies for encouraging Tennesseans to adopt a zero-emission mindset.” The state is focused on heavily trafficked Interstate 24 and Interstate 65 corridors.

“As the nation's largest public power supplier, TVA is looking forward to being part of this project to explore the potential of electric vehicles,” said TVA Chairman William Sansom in joining the Tennessee initiative. “Electric vehicles could put electricity to work overnight, or off-peak, when other power needs are lower.”

Across the nation, Oregon is one of 17 states that is addressing growing climate problems by implementing carbon emission cap-and-trade. Oregon is part of the West Coast Governors Global Warming Initiative. Nissan has committed to supply ZEVs to the state of Oregon and to help promote an EV Charging Network. Active in the Oregon initiative is Portland General Electric [PGE], which has installed six charging stations this year.

California is also a member of West Coast Governors Global Warming Initiative. California, as the world’s third largest consumer of petroleum, has a compelling need to expand the use of zero-emission vehicles.

The mayors of San Francisco, San Jose and Oakland announced a $1 billion project to build a regional network of electric car charging stations. An important part of the regional network is the promotion of harmonized standards across the region, which should encourage the participation of many automakers and charging infrastructure providers. The Bay Area initiative will include expedited permits, financial incentives, and a roll-out plan for charging equipment. Although the network investment is estimated to ultimately reach $1 billion, the process of developing public and private investment is just beginning.

The Bay Area initiative is endorsed by innovators such as Better Place, which has raised over $100 million to provide a charging infrastructure and to provide batteries using a subscription model. Governor Arnold Schwarzenegger supported the project, "This type of public-private partnership is exactly what I envisioned when we created the first-ever low carbon fuel standard and when the state enacted the zero emissions vehicle program."

The Mayors’ announcement could create a national model. Speaker of the House Nancy Pelosi supported the announcement, "Promoting the use of electric vehicles will help forward our nation's goals to achieve energy independence, to protect the environment by reducing greenhouse gas emissions and to boost the economy by providing jobs in an emerging manufacturing sector."

Comments

[a. palmer jr.:]

Since our automakers can't get serious about anything but SUV's you know someone would step into the void. I can't wait till electric vehicles become affordable, probably 5 years from now.

2008 Nov 26 10:06 AM

[Poor me:]

Try to drive from Indiana to Florida, or even Kentucky. Better have an extra set of battery's with you. Maybe they should install pedals for when the battery's go dead.

2008 Nov 26 11:23 AM

[Poor me:]

Pedal cars would be the ultimate green machine, and promote good health as a side effect. I should call Obama, or Nancy about this idea, it sounds like something they would like.

2008 Nov 26 11:25 AM

[John Adam:]

Unfortunately no one appears to understand how antiquated our electrical power transportation and distribution grids are. We are wasting huge amounts, in the neighborhood of 10%, of all the electric power we generate in order to prevent possible blackouts. That was necessary because before inexpensive computer microprocessors became available and Power Line Communication technology was developed it was impossible to integrate nearly instantaneous micro management into the fabric of these power grids. Smart grid technology makes this possible now, en.wikipedia.org/wiki/... .

The electric companies are already installing electric meters with micro processors that can do this. These meters communicate with their billing computers to determine your bill. And if you fail to pay your bill these computers can communicate a command to stop service to your electric meter. We need battery chargers with micro processors that can communicate with computers controlling the electric distribution networks. These chargers would not begin charging until AUTHORIZED by the grid control computers that would fine tune power generation to usage at any instant in time. This would allow minimal wasted power without power blackouts.

This could be done 24/7 not just at “off peak” times. This is a merger of IT and electric power network technologies. Security can be done even better than on business computer networks. The chargers could be AUTHORIZED and SHUT OFF. They could be ordered to HELP POWER the distribution network. You could add millions of SOLAR ROOFS to the network and actually buy and sell this new power generation with minimal waste.

Technology is the solution. Technology challenged politicians and lawyers are big problems.

2008 Nov 26 05:13 PM

[Road Runner:]

I found the statement, "Longer term, Nissan expects to see many urban centers, such as London, where only ZEV will be exempt from expensive daily congestion fees." interesting. Often, to get a technical advancement off-the-ground there needs to be a "killer application". Some niche use that drives the production of a product to perfect the product and to make it affordable for other applications. In the 1960s, the "need it at whatever cost" of the space program launched the use of the integrated circuit. This and other applications may be a "killer app" for zero-emmisions-vehicle... Just a thought.

2008 Nov 26 06:13 PM

[TinyTim:]

how's this for a killer app-
most commuters (something like 80%) drive less than 50 miles roundtrip every day.

I would buy an all electric car in an instant. They should be less expensive than todays cars or a PI-hybrid. Recharge in my garage at nite during off peak rates. Cheap and economical - until somebody screws it up.
I can understand Detroit not wanting to part with internal combustion, but the new Big 3 should embrace this more.

What recharging infrastructure? LOL Besides not being needed,
what's so hard about a parking type meter hooked up to to an electrical outlet? They've been on engine warmers in Alaska for years.

Of course, there will always be a need for over-the-road gasoline cars for occaissional trips. so hang onto one.

2008 Nov 27 12:27 AM

[Poor me:]

Anybody price the replacement of these battery's that will go bad, as battery's do? Last I saw, it was about $7000 from one company. Not like the $80 to $100 for your current auto. Also, with all these eco friendly cars zipping about, and charging every night, what good will it do when we are just burning coal out the ass to generate more power to charge these green machines, and just dirty up the air, and heat up the earth twice as much. No more dirty coal....... I'll bet the solar, and wind farms will keep up. When I was a child, I had a car with a wind up key, and it went just fine, how about trying that, kind of like those wind up laptops, give it a crank, and go for five minutes, then get out give it another one. No lead filled battery's, no emissions, no gas, no dirty coal powered electricity, and no 100 miles per charge. You can go as far as you want, as long as you can keep cranking.

2008 Nov 27 01:11 AM

[Poor me:]

Nikola Tesla, he was way ahead of his time. Had a wireless electric car, I think in the thirtys, and wanted to set up towers to use this technology, not only for autos, but to power homes, etc. but was made out to be mad, and his idea was buried, and his tower torn down. If he were only around today think what he might do. He was one of a kind.

2008 Nov 27 01:22 AM

[33Nick:]

Again, it is an all encompassing effort happening right now, and you can't look at only one segment of the industry and get an accurate glimpse. Better Place is one key to the riddle, they are working on electric recharging stations, and also tout leasing battery packs, so that you can stop into a station and drop the old ones, in with the new. Now you can drive as long as you want. Utilities are working on updating the old grid, and companies like AC Propulsion and their brilliant V2G are pushing innovations towards a more balanced grid.

Renault-Nissan's strategic alliance with Better Place, via Ghosn looks like pure genius so far. And remember Ghosn worked in Detroit, so he could still be key in the future of the U.S. indsutry.

In the meantime, companies like Renault-Nissan, Mistsubishi, and other mainstream that are betting on longer terms will eventually team up with startups like Tesla, Fisker, etc. Fisker is already eyeing GM engines, AFS Trinity wants to buy at least one GM plant to manufacturer their 150 mpg SUVs. There are local buyers for Detroit already. In the meantime, while our once-big 3 Detroit trio is trying to reconnect with driver's reality, the rest of the world is positioning themselves for an electrifying tomorrow. What a year it has been.

2008 Nov 27 02:40 PM