Nissan CEO Sets Electric Vehicle Price Target at Equivalent to VW Golf

By · July 09, 2012

Nissan LEAF

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 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.

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