Nissan has moved Toshiyuki Shiga, its chief operating officer, to the head of its electrical vehicle operations, in what’s being regarded as a determined move by the Japanese automaker to elevate sales of its zero emission lineup, including those of the Nissan LEAF hatchback. Having started with Nissan Motor Company in 1976, Shiga brings more than three decades of experience to a position tasked with meeting the ambitious EV sales targets originally established by Nissan’s outspoken CEO, Carlos Ghosn. Sales of the LEAF 5-door hatchback have fallen below expectations. Sales of approximately 25,000 units in 2012 are roughly half original sales goals. Both the Chevrolet Volt and Prius PHEV outsold the LEAF last year.
Committed to Electric Vehicles
Judging from a variety of interviews and EV-related comments, Shiga appears well suited to his new role. In an interview filmed in May of last year, he addresses the issue of EV acceptance via his dual-role as head of CHAdeMO—a business consortium committed to a standardized form of quick charging around the globe. “Popularization of EVs is a major issue that people need to address as a global environmental answer to resource and energy issues,” said Shiga. “It’s important that the whole industry is united to work on high-speed charger standardization to promote EVs around the world.”
During another recent interview with The Economic Times—in which Shiga discusses topics ranging from workplace diversity, to emerging markets and Japanese business methodology—the importance of electric vehicles to Nissan’s image, and its bottom-line, are quite clear. Also evident, as Shiga points out, are the hurdles still facing this emerging technology. “We have sold 50,000 units of the Nissan LEAF in the U.S., Japan, Europe since launch. That may sound small, but we are proud of it. We hope emerging economies will also promote electric cars. Air pollution is a big problem in China, just as it was in Japan.”
Environmental benefits are extremely valid points, though Shiga brings up several issues facing EVs at home in Japan, and around the world. “In Japan, the government subsidizes electric cars and has committed 100 billion Yen towards building infrastructure around this technology. Price, infrastructure and driving range are the three hurdles to overcome. We have recently reduced the price in the U.S. and sales are getting better. But the unique selling proposition of electric cars is the low running costs, which is 10-percent of conventional cars. It gets more economical as you use it.”
Earlier this year, Nissan announced it would be lowering the price of the Leaf to $28,800 for the new entry-level S trim level. Thanks to this lower price tag, PlugInCars.com estimated the five-year running costs of a LEAF would be significantly less than similarly sized, gasoline-powered competition.
Expanding Nissan’s range of EV offerings will also be vital to boosting sales, and this includes bringing EV technology upmarket to the automaker’s Infiniti luxury division. The Infiniti LE Concept, first shown at the 2012 New York Auto Show, offered the first hint of the production model expected to arrive in 2014. It remains to be seen what other changes, and shifts in corporate strategy, this boardroom maneuver could bring to Nissan’s EV future.
About the author
Nick Kurczewski is an automotive journalist based in New York who has contributed to The New York Times, Road&Track, Edmunds.com, Car&Driver, Delta Sky and many other well-respected automotive and mainstream publications in the United States, Asia and the U.K. Raised in Milwaukee, Wisconsin, and Westfield, New Jersey, Nick transferred his long-time passion for cars into a successful ...
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If Nissan wants to sell more Leafs they need to build more. There are less than 1000 available nationwide at all Nissan dealers in the US. This is pathetically low levels of inventory. Get that Smyrna factory cranking and ship more Leafs to the west coast!