The higher price is not the only problem, another problem is the range and very difficult recharge while on the road so if ever there is a price drop it won't compensate for the main problem that is perceived by the majority as a sub-performance overall package norwithstanding the selling price.
Nissan CEO Sets Electric Vehicle Price Target at Equivalent to VW Golf
Within five year's time, CEO Ghosn wants Nissan to produce an electric vehicle that costs roughly the same as mainstream automobiles such as the Volkswagen Golf.
Carlos Ghosn, Nissan’s pro-EV CEO, wants electric vehicles to sell at the same purchase price as gas cars by the end of this decade.
Francois Bancon, Nissan’s upstream planning division general manager, said, "The target that was decided by the CEO—I’m not sure that was realistic but that was the target—[was that within] five years, the cost must be the same as the Golf." The comment was reported by Australia’s CarAdvice.com last month.
Ghosn targets the Volkswagen Golf, which ranges in price from $17,995 to $28,340 in the loaded TDI variant. I assume that Ghosn is not targeting the costly diesel version of the Golf, but instead is more focused on matching the price of the 2-door and 4-door gas-fueled Golf variants in the $20,000 range.
With current incentives, the price is within striking distance (even though Nissan has struggled to sell more than several hundred Nissan LEAFs per month in the United States.) As Bancon stated, "We are not far from this with the incentives that we get in some countries. That is the target, and I think that will happen."
Unfortunately, incentives are not guaranteed forever. If Nissan can reduce EV costs by the end of the decade, at least it will maintain its current position in the marketplace, even if incentives fade away. However, if incentives remain in place (and gas prices rise), the lower cost structure could put electric cars at a significant advantage.
Comments
· gorr · 49 weeks ago
· Benjamin Nead · 49 weeks ago
Recent studies have shown, gorr, that so-called range anxiety isn't as large an issue as it was in the recent past. We can probably thank much online reporting and followup debate on the subject to help more folks than before realize that - given typical daily driving requirements - most can do just fine with the range being offered on today's EVs, such as the Leaf.
As for charging being "very difficult," I don't see that either. Most early adopter EV owners are also home owners and, as part of their EV purchase, typically have Level 2 J1772 equipment in their carport or garage. They plug in at night and charge while sleeping. What could be easier?
Long range EV travel is a bit more problematic, as is home charging for apartment/townhouse dwellers. But these are largely infrastructure issues that will be addressed in time. Most of the civilized world is already wire for electricity. So, it's not going to be insurmountable to move forward on this.
No, recent polling has shown that most folks who have been hedging against getting an EV sooner than later are concerned more with the higher initial purchase price (compared to ICE cars) than anything else. Before we get $20,000 EVs with 200+ range stats and/or hydrogen, car companies are going to need to take existing or soon-to-be-introduced EVs and offer intelligently stripped-down entry level models of these cars, if they wish to bring more people into the fold.
· Nicolas, Allogarage.fr (not verified) · 49 weeks ago
Carlos Ghosn has set ambitious targets for Renault / Nissan in electric car. For me it's a gamble: either he's right and Renault will be the leading manufacturer in 2020, Renault will end up like Saab ...
· Brian Schwerdt · 48 weeks ago
@Benjamin Nead,
I'm not convinced that it will be so easy to lower the price by stripping out the luxuries. The problem is that these things (electric windows, bluetooth, GPS, ...) cost very little for the automaker to install. In the traditional model, they would take a basic car, add $100 worth of extras, and charge $2000 to the consumer. Naturally, they loved this. With new technology such as EVs (and previously hybrids), they have come from the opposite end. These new vehicles are simply more expensive to produce - at least at first - and they need a way to justify the higher price for the consumer. So they slap in all these extras so the consumer doesn't feel like they have a $30k stripped-down econobox. Rather, the consumers get what would have traditionally cost thousands extra on the ICE vehicle. The downside is the automakers lose that extra profit margin. Plus, stripping the extras out cannot reduce the price much, since they aren't driving it in the first place.
On the topic of hand-cranked windows versus electric, I personally have had crank windows fail (cranks break, windows stick or fall off the tracks) on multiple cars. I have never once had an electric window fail. Furthermore, I find it hard to believe that the price (for the automaker) is much different between the two. A tiny electric motor costs a couple of dollars. Same with the hand crank and gears. What's worse, designing a car and gearing an assembly line for both options is far more expensive than simply making them all the same. It is my impression that this is why you almost never see hand-cranked windows any more - it's actually more expensive.
· Benjamin Nead · 48 weeks ago
"The downside is the automakers lose that extra profit margin. Plus, stripping the extras out cannot reduce the price much, since they aren't driving it in the first place."
That may be so, Brian, but cheaply made doodat are prone to break over time and it's the replacement cost where the profits come from. I've had both manual and electric window cranks fail on me and I'm here to tell you that the motorized ones were considerably more expensive in regards to replacement parts. The little motor in question might have been only a $10 item but, being presented by the repair shop as an official OEM replacement part, it was suddenly worth something like $160. Someone is making a serious profit here.
Electric windows are old hat, though. The latest infatuation with auto manufacturers appears to be the "infotainment" features and other electronic marvels we are told we can't live without. Yet a recent study finds that I'm not the only one who thinks the trend has gone too far . . .
http://www.huffingtonpost.com/2012/06/20/technology-complaints-cars_n_16...
Even if the wholesale cost of these various parts amounts to just a few dollars per unit, multiply the cost of those parts by tens or hundreds of thousands. Assuming a certain percentage of those parts installed on ready-to-sell cars are going to fail, more parts are made than the number of vehicles projected to be sold. Those parts have to be stored some place, in a building that's climate controlled and tended by computer literate humans who demand a wage to sort, catalog, fetch, distribute and deliver. Applying the assembly line efficiency analogy you cite above, one could make the argument that the fewer extraneous parts you have on a car, the less expensive that car is going to cost to make.
But, yes, I think we agree that the cost of the battery is the current largest impediment to a more affordable EV. I just hope that, when the $20,000 / 200 mile-per-charge electric car finally gets here, the one I'll take home will have door windows I can adjust without having to turn on first.
:-)
· Jose G · 48 weeks ago
This is much more significant than some government bureaucrat pulling some number out of his sleeve about what he thinks the price for anything should be.
· tomysmith97 · 44 weeks ago
I think it's too risky for Carlos Ghosn to make decisions like this. The Targets for Nissan's electric cars are possible but requires a lot of efforts. And of course people will react on this higher price that they are planning to implement. Plus on the other problems like locations of recharging areas, which are not that close to each other. I just hope that they think about this much further. We all know that there are a lot of issues to be settled on electric cars first. But if they will give auto parts with discount, people might as well enjoy this new technology. :-)
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It's doable. The base line Leaf, the SV, already leaves off the Level 3 CHAdeMO port. Given that all the models for the next model year will have a 6.6kWh charger on the Level 2 J1772 port, that's a 4 hour charge on a completely empty battery and that's good enough for many.
The current SV doesn't have a rear view camera. But items on the "hit list" that could go include the hands-free calling and Bluetooth stuff. Navigation and satellite radio can also go. Put in a basic AM/FM radio instead, but keep the USB/iPod connection. My personal favorite item to substitute, of course, is manual window cracks in favor of the little window-cranking electric motors in the doors.
Anything touchable that is heated (windows, mirrors, steering wheel, seats, etc.) should be optional on a base model. Cold climate drivers would want some or all of this stuff, but it is almost useless for many in the southern half of the US.
All the above is essentially nickel and dime stuff. But it adds up and it leads to a car that can appeal to budget-conscious middle age or older owners who don't mind more basic accoutrements in their autos.
The largest item of expense in the Leaf is the battery, of course. One can hope that there will be enough of a price drop per kiloWatt and enough of a corresponding energy density increase in the next generation units. Nissan could keep the bass line Leaf a 80 to 90 mile range car, like it is today. But a physically smaller and less costly battery could accomplish this when compared with what's available today.
If the above next generation battery scenario plays out, Nissan could completely fill up the existing battery space with a higher next generation unit and, as Tesla is now doing with the Model S, offer greater range for a premium.