More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
David Kiley

GET UPDATES FROM David Kiley
 

Carlos Ghosn Is Alone In 'All-In' Position on Electric Vehicles

Posted: 01/13/12 04:43 PM ET

When Renault-Nissan CEO Carlos Ghosn starts talking about electric cars, it's easy to think at least one house on every block in America will have one in a decade or two.

The CEO, who as recently as 2007 was angling to essentially take over General Motors, is almost over-confident about electric vehicles while his peers remain, at best, cautiously even-tempered about the future of EVs.

Nissan's big EV gambit so far is the Leaf, an EV hatchback that is meant to get about 100 miles on a charge, but for me, only got 80 miles when I tested it last year. Nissan sold just under 10,000 Leafs last year.

"But that was only in nine states (including California)," notes Ghosn. "If we can't double that this year as we expand production and distribution, then we don't know what we are doing." Ghosn said this to a gaggle of reporters in a roundtable interview at the North American International Auto Show this week.

The eyes of EV critics and skeptics--and there are many--are on monthly sales of Leaf and the Chevy Volt extended-range EV. According to Ghosn, the company's only problem selling Leafs is lack of production. "If we had had more, we'd have sold more." he said.

Leafs are built in Japan for now, as are the lithium-ion batteries used to propel them down the road. Supply was curtailed in 2011 by the effects of the earthquake and tsunami in Japan last March. But Nissan is moving production for both cars and batteries to its Tennessee facility by the end of this year, which will not only provide more supply but help with the cost since the strong Japanese yen is driving up the cost of building the Leaf in Japan.

The acceptance of electric vehicles by consumers is still very much up in the air, so long as the price of regular gas stays between $3.20 and $3.75 per gallon. Another wild card is how many people will embrace EVs -- unlike the Chevy Volt, they rely totally on electricity and the ability to conveniently re-charge. Ghosn says research on early Leaf buyers shows that the average daily driving distance of owners is about 20 miles, well under the range of the car.

Ghosn also said that more than half the buyers have the Leaf as the household's primary vehicle, not a secondary one.

The logical question to be asking is what the ceiling is on committed "green" consumers and early adopters of new technology. For all the hype and popularity of the Toyota Prius, all hybrid sales account for less than 2% of the U.S. market.

Prius dominates that portion, which means all other brands are still fighting for scraps in the pool of hybrid buyers. And unlike EVs, there are no limitations or fears of running out of power with a hybrid. Sales of hybrids have been tied to gas prices. And the U.S. government is allergic to the idea of boosting gas taxes to help pay for roads and bridges, let alone to help along the sales of EVs, hybrids and fuel efficient clean diesel vehicles.

Ghosn is, above anyone else in the global auto industry, probably placing the biggest bet on EVs being a significant part of the world auto market by 2020. He says he believes they will represent 10% of world sales by then. That prediction hinges a lot on the adoption of EVs in Europe and China.

How much is he betting? He says his companies have invested a combined four billion euros ($5.6 billion U.S. at the current exchange rate) into EV technology, with even more electric tech spending to come.

Ghosn is clearly out to lead in a space that still makes many of his peers skittish. That makes him a bit of a gun-slinger in my eyes. His goal is to have Renault-Nissan become the worldwide leaders in the EV segment.

Hard to knock a guy whose goal is to lead his industry in something besides profitability.

 
 
 
  • Comments
  • 108
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
Page: 1 2  Next ›  Last »  (2 total)
photo
special38x2
Live, Love, & Laugh
11:05 AM on 01/17/2012
Very helpful comments being posted with alot of great sites posted. Thanks all!
This user has chosen to opt out of the Badges program
09:38 AM on 01/17/2012
Autos saved cities from horse manure...

http://www.ledgersentinel.com/article.asp?a=8072
Why the arrival of the auto was good for public health...

"We hear a lot of complaints these days about pollution caused by autos, trucks, and buses. But when it became clear that Henry Ford's perfection of the assembly line method of manufacturing automobiles was producing machines that virtually every American family could afford, it was considered a great ecological advance.

Right up until hundreds of thousands of Ford's cars began to replace them in wholesale lots, horses made the United States hum. They powered farm machinery, and they hauled freight inside and outside metropolitan areas. And they caused a variety of public health problems, many of them serious.

According to one estimate, each urban horse consumed roughly 1.4 tons of oats and 2.4 tons of hay and other fodder per year. One contemporary British farmer calculated that each horse consumed the product of five acres of land, a footprint, which could have produced enough to feed six to eight people. Some 15 million acres were needed to feed the urban horse population at its zenith, an area about the size of West Virginia. Directly or indirectly, feeding horses meant placing new land under cultivation, developing and growing new strains of crops, clearing it of its natural animal life and vegetation, and sometimes diverting water to irrigate it, with considerable negative effects on the natural ecosystem...."
10:56 AM on 01/16/2012
Used EVs today have no known resale value. No one's planning on purchasing a used EV where the replacement cost or the time till replacement of that electrical system is unknown.
11:48 AM on 01/16/2012
That is a demonstrably false statement. Electric cars have been on the road for years, and in fact, generally hold resale value much better than conventional cars. Here's a used electric car website with lots of used electric car prices:

http://www-new.evtradinpost.com/
08:42 AM on 01/16/2012
We should tax gasoline to pay for the military and security costs of occupying the Middle East. That would add $3.00 per gallon but it would reflect the true costs associated with our continuing military empire.
photo
rodjard
I Update my brain frequently
07:08 PM on 01/16/2012
The higher toe price, the higher the tax,
so, in a way we already are.
photo
HUFFPOST SUPER USER
JohnTheMac
Now, why don't you go home and get your shine box?
12:21 AM on 01/17/2012
not so. I looked it up. The federal tax is 18.4 cents per gallon, whether that gallon cost 99 cents or $3.99.
Then you add the state "sales tax", and that also looked to be a fixed rate per gallon, not percent of price.
Usually, these add up to be around 50 cents or so, per gallon.
photo
HUFFPOST SUPER USER
mountainweb
Conservative Commonsense
08:40 AM on 01/16/2012
EV's will never take off until the price gets down to where the average American can afford to buy one. $30,000 and above is way too much of a price gap to compete with a hybrid.
08:58 AM on 01/16/2012
It's not just about purchase price - it's about cost of ownership. If your monthly payment is $150 higher, but your fuel bill is $150 lower, your EV is at least as affordable as what you previously drove. And that $150 figure is fairly typical for fuel savings.
photo
HUFFPOST SUPER USER
mhh310351
Roosevelt Democrat
07:45 PM on 01/15/2012
I bought a used CNG Honda November 2009 and a Phil station for under $25,000.00. /save 1 hour on my daily commute because I can use the car pool lane! It cost me about $0.97/gallon gasoline equivalent or about $0.025/mile fuel cost. In November I was offered $24,000.00 for a car I spent $17,800 2 years before! I decided that a net of $6800.00 for 5 extra hours a week with my family was not worth it!

Bought it more because I did not want to support nations like Iran, Venezuela, & Libya and wanted to drive a clean vehicle and since the buses use it why not.

Funny thing is the rates are such it lowered my home heating bill in the winter - I pay summer rates!

After reporting all this I bet the CO2 footprint for my car is lower thanthe average Leaf driven in California!

Anyone want to take the bet?
photo
MSROADKILL612
am not convinced geothermal energy is above ground
11:38 PM on 01/16/2012
man - am not just a fan - am a stalker

love cng & love that honda is doing this car

kudos dude/ette

did u also know honda have a NG home generator which uses the waste heat for water & assume - space heating
photo
Moose Luck 99
Rand Paul is a LIAR!
photo
special38x2
Live, Love, & Laugh
10:11 AM on 01/17/2012
Hey MS, give me a link on this please :)
photo
MSROADKILL612
am not convinced geothermal energy is above ground
11:47 PM on 01/16/2012
PS - on another thread re this - if the boss had a fleet of them & a simple phil w/ two jacks on it - it could do a fast equalise between a full car & an empty car so both had reasonable range in the tank

the idea received favorable comments
photo
Moose Luck 99
Rand Paul is a LIAR!
12:35 AM on 01/17/2012
your picture fits you well if you do not know about air powered cars and motorcycles ;)

Advances have been made on safe 500 psi storage tanks.
New engines are very efficient.
photo
HUFFPOST SUPER USER
mhh310351
Roosevelt Democrat
07:23 PM on 01/15/2012
I bet you per mile driven a leaf will have a higher CO2 footprint than a CNG Honda.
09:09 PM on 01/15/2012
Given that California uses a very small percentage of coal, a lot of natural gas, some nuclear, hydro, wind and solar, I'd have to disagree. And those of us who fuel our Leafs with solar power are very clean.
photo
HUFFPOST SUPER USER
mhh310351
Roosevelt Democrat
11:22 AM on 01/16/2012
http://docs.cpuc.ca.gov/published/report/gov_report.htm

54% from fossil fuels in California in general

But L.A.D.W.P. still gets about half it's electricity from old coal plants in Nevada & Arizona. Take L.A. out pf the mix and that dramatically reduces the market for the Leaf.
photo
MSROADKILL612
am not convinced geothermal energy is above ground
02:18 AM on 01/17/2012
absolutely - and u car is light & there is plenty of it - if only we dont piss it away on power generation

big problem is cng stations - so easy but US cant even do that
photo
HUFFPOST SUPER USER
clearasmud
De Tocqueville and Marx were both right
07:05 PM on 01/15/2012
As the world sinks into a depression the price of oil will decline for a few years. Everyone will be happy with the price and forget about the looming catastrophe. But, consumption will still be occuring and the reseves will still be falling. So, when the world economy starts going again the price of oil will shoot through the roof, quickly. To the extent it will knock the world back into another depression. Whereas the price of oil will decline and...

Ad infinitum.
wsdave
Abusive or Insulting? I won't be responding.
09:01 PM on 01/15/2012
Ad infinitum...until the oil runs outs.
photo
rodjard
I Update my brain frequently
07:02 PM on 01/16/2012
We, especially me ain't still stupoi enough to keep chasing
that same tigers tail around the tree.
photo
Moose Luck 99
Rand Paul is a LIAR!
02:27 PM on 01/15/2012
A really good vehicle for hot climates is the AIR POWERED CAR.

The cooling effect when compressed air is released could provide AC too.
photo
HUFFPOST SUPER USER
mhh310351
Roosevelt Democrat
07:24 PM on 01/15/2012
funny! I marked as Favorite.
09:37 AM on 01/16/2012
It may seem funny, but this is a real product:

http://www.mdi.lu/english/

It's actually another type of electric car, since the air compressor runs on electricity. But the car needs no batteries - the energy is stored as compressed air. Hybrid versions, with gas engines, are also sold.

It's actually a great idea.
photo
MSROADKILL612
am not convinced geothermal energy is above ground
12:08 AM on 01/17/2012
Dude - seriously - do u think this is new? energy stored vs kg required couldnt be worse

speaking of vessels - u r an empty one
photo
Moose Luck 99
Rand Paul is a LIAR!
12:58 AM on 01/17/2012
INCREASE MPG 30% ON THE CAR YOU OWN NOW!

Decrease NOX and unburned hydrocarbo­ns.70%!

Fuel Vitalizer

Sonic Spark Plugs (Piezo) or Halo or Pulstar

Tornado Vortex Generator

Even More Mpgs Torque & HP.
http://www.hydrogenboostnow.com/HHO-Dry-Cell.htm
09:00 AM on 01/15/2012
$3.50 will buy me 1 gallon of gas or (because electricity is only $0.076 per KWH here in Oregon) it will buy me enough electricity to go 150 miles in my new red Leaf!! So 150 mpg equivalent for me!! I'm laughing all the way to the bank!
wsdave
Abusive or Insulting? I won't be responding.
09:08 PM on 01/15/2012
How much did you pay for the Leaf?

My car cost me $1,000 and works great. I average about 25 mpg.

The Leaf starts at about $37,000, but we'll call that $30,000 with the discounts.

At $4/gallon, the $29,000 difference will buy about 7,250 gallons, which will take me about 181,250 miles. For most folks, FAR past the sell-by mileage.

Plus, I get to use that $29,000 for other things while driving that 180,000 miles.
BlackbirdHighway
Brawndo's got electrolites!
07:39 AM on 01/16/2012
"My car cost me $1,000"

Where did you get a new car for $1000?

Sorry, but that just doesn't sound believable.
09:07 AM on 01/16/2012
$1000 for your car? Well, since we're comparing used cars, I have a used electric car I got from eBay for $2000. Yes, really - picture here:

http://evalbum.com/775

My electricity cost in this car is about two cents per mile, and periodic battery replacement (old car, old battery technology) adds another four cents per mile.

So, six cents per mile, total. Pretty hard to beat.

Your price for the Leaf is way off. It's about $25,000 after rebates. Here's a spreadsheet that helps show cost of ownership for various gas, hybrid, and electric cars:

http://www.squidoo.com/a-free-calculator-for-economy-hybrid-and-electric-cars
photo
MSROADKILL612
am not convinced geothermal energy is above ground
02:23 AM on 01/17/2012
good input - encourages folks w/ known travel habits or a spare car - also peaceful ride
BlackbirdHighway
Brawndo's got electrolites!
11:57 PM on 01/14/2012
Worldwide oil production has not increased in 6 years despite high prices. That is a clear sign that we are rounding the peak. Expect gasoline to be above $4 a gallon by next summer, and electric cars to be very popular.

Every car maker is working on electric cars because they all know that this is the beginning of the end for cheap oil.
photo
HUFFPOST SUPER USER
mhh310351
Roosevelt Democrat
07:28 PM on 01/15/2012
I drive a used CNG Honda have a Phil station at my house it cost me about $0.025/mile to operate and I get a break on heating my house in the winter! How sweet is that. And we all know with the inefficiencies of making electricity that a Honda CNG will have a lower CO2 footprint than the Leaf or Volt!
BlackbirdHighway
Brawndo's got electrolites!
07:42 AM on 01/16/2012
Most of my electricity comes from solar panels so I don't worry much about efficiency. If CNG works for you then that's great!

We have to get off oil, and there are multiple ways to do it.
photo
HUFFPOST SUPER USER
Michael D Ballantine
Former Presidential Candidate - Amer Elect 2012
11:04 PM on 01/14/2012
It's a good bet because as the primary maker of electric cars, Nissan will be well positioned to respond when the market begins to take off in a couple years. We have been waiting for a manufacturer to get serious so the average price can come down. Oil prices won't be coming down for a long time because of the coming war with Iran so electric will present an attractive alternative for consumers concerned about their carbon footprint. As President, I would subsidize the cost of 1 million batteries to support the industry as well as begin transitioning cities to emissions free zones.
photo
HUFFPOST SUPER USER
mhh310351
Roosevelt Democrat
07:32 PM on 01/15/2012
Mark my words when one considers the rare earth metals & lead needed to make these cars a reality it will be an ecological nightmare!

Probably not here but somewhere - can all you NIMBY environmentalist live with that?
09:04 PM on 01/15/2012
There is no lead in Lithium Ion battery packs. Nissan Leaf uses no rare earth metals in its electric motor.
BlackbirdHighway
Brawndo's got electrolites!
07:46 AM on 01/16/2012
Lithium is not a rare earth metal, nor is it rare. It is about as abundant as aluminum.

Lead is used in conventional car batteries and is poisonous and a hazardous waste. Lead is not used in electric cars, they use lithium which is not a hazardous waste. So you have that exactly backwards.
tootrue
Rural Intelligence
11:58 PM on 01/17/2012
Subsidies aren't even necessary. The federal gas tax (which hasn't been increased in like 18 years) should be increased, with the money going to roads and bridges.

The resulting increase in the price of fuel will push more drivers to EVs and hybrids, and the increase in their market size will translate to better, cheaper batteries.
photo
HUFFPOST SUPER USER
Michael D Ballantine
Former Presidential Candidate - Amer Elect 2012
06:46 PM on 01/18/2012
The battery cost for Lithium batteries is still too big a nut to cover for volume production levels. We need a subsidy of between $8 and $12,000 per car.
10:36 PM on 01/14/2012
Nissan sells every Leaf they can build, Toyota sells every Prius they can build. Expensive Tesla and Karma sells every car they can build. The low % of plug in vehicles is because so few are built, not lack of acceptance. Over and beyond is the hard fact that aside from the cost of the vehicle, driving a plug in on grid tie, solar electricity over the 25 year warranted life of quality solar modules is 2 times less expensive than $4/gallon gasoline or diesel. Solar and plug in vehicles means almost no pollution and no USA dependence on imported oil including oil from Canada and Mexico.
HUFFPOST SUPER USER
alvdh1
05:12 PM on 01/14/2012
If this article had been written in the context of finite fossil fuel resources and an exploding world population with 2 billion of them wanting to attain Western lifestyles, then Davis Kiley could have written the story about Ghosn being a genius for bringing an electric vehicle to market before his automotive peers. .

Many reliable research organizations are pegging the price of oil to be between $150 - $200 per barrel by 2013. There are 4 specific reasons that support the escalation of oil costs to these lofty levels. Economic growth in Chindia, an irreversible decline in oil production in 40 of the 50 largest oil producing countries, exploding population growth and the media who doesn't have the temerity to do investigative reporting on the problem.

Media's failure to make this a perpetual headline story reflects the ongoing conflict of interest of collecting advertising dollars from those who stand to gain the most from maintaining the status quo of ever increasing consumption of a finite resource that is on the cusp of peaking in supply. The more writers like Davis Riley focus on the pitfalls of electric cars rather than the looming energy crisis, the less the world will be prepared for the looming shortage of oil. Those who prepare for the coming shortfall of oil will survive.

http://www.guardian.co.uk/business/2010/jul/11/peak-oil-energy-disruption

http://www.theoildrum.com/node/8797

http://www.theoildrum.com/node/4041
BlackbirdHighway
Brawndo's got electrolites!
07:53 AM on 01/16/2012
Global production of conventional oil peaked in 2006. Prices are high, demand is increasing, so the basic economic models say that production should be increasing as well, but instead it is declining.

Gasoline in the US will cost $4 a gallon in the US this summer. Over the next 3 years it will go over $5 and stay there.

Go out and buy yourself a fastfood drink and suck on the straw. When you hear a gurgling sound then you will understand where the world is with oil production.
12:46 PM on 01/14/2012
I love not spending my money on gas. That is at the pump. We all pay for gas with our taxes, if we didn't gasoline would be $10 a gallon at the pump. Too bad for those who don't have a car, they pay for gas too with their taxes.
I drove 12,000 on my household current last year, with no trade-offs. A car has to be fun to drive for American consumers to buy it. That is why electric cars will sell very well once the public gets to know the thrill of plugin electric cars. Driving electric is a unique driving experience unlike any gas car. Smooth, quiet and powerful. All it takes is a test drive and you will know.
Electric cars allow you to use American made electricity instead of foreign oil. Buy American.
I love being part of the solution. I love not being a slave to gasoline. I look forward to driving my electric car every day still after a year of ownership.
I spend my money on things I want and not gasoline.
BlackbirdHighway
Brawndo's got electrolites!
11:59 PM on 01/14/2012
Once you drive electric you'll never go back. That's what I tell people. The ultimate setup is to put up some solar panels and "drive on sunshine".
04:19 PM on 01/15/2012
I bought my solar PV system in 2002, then bought an EV from Toyota. For over 9 years I've been "driving on sunshine" and running my house on the same clean energy. I'm earning at least 15% ROI on my investment when gas is close to $4/gallon. There were hundreds of us doing the same thing, but with this past year's sales of 17,000 plug-in cars, there are now thousands of us doing this EV/PV thing.
photo
MSROADKILL612
am not convinced geothermal energy is above ground
01:35 AM on 01/17/2012
wonderful u & others make it work in u life - add a domestic windmill to the power source mix & is v cool indeed - as in solar is a big ask for folks that charge at night as most do

we seem at last to be hearing how nice silent driving is - worth a sacrifice in convenience

i may sound hostile to ev - am not - just most demographics still need an ice in the shed