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Print 17 comment(s) - last by michael67.. on Mar 16 at 11:07 AM

Can the company COO overcome poor demand?

The electric vehicle industry is still struggling to capture the dollars of consumers around the world. Pure electric vehicles still sell in very low numbers making them nothing but a niche market for most automakers. The sales of hybrid vehicles are doing better, but most consumers still choose traditional gasoline-only vehicles (at least in the U.S.).
 
Nissan announced this week that COO Toshiyuki Shiga would begin to oversee the company’s zero emission vehicle strategy and battery-powered vehicle businesses starting on April 1. Hideaki Watanabe, who was corporate vice president at the electric car division, previously ran the division.
 
Watanabe has been moved to supplier Calsonic Kansei Corp where he will act as senior vice president.

 

"Chief Operating Officer Shiga is taking direct responsibility of zero emission efforts because the business is Nissan's top priority which requires global and cross-functional efforts," Chris Keeffe, told The Detroit News in a phone interview.

Nissan has been struggling with sales of its pure electric Leaf for quite some time. The company announced in late 2012 that it would fall short of its goal of selling 20,000 units during the year. By the time November of 2012 rolled around, Nissan had only sold 6,791 Leaf electric vehicles for the entire year making 10,000 look like an impossible number for all of 2012.

Nissan is looking at many possibilities to help improve the popularity of its electric vehicle. One key move Nissan has made is to cut the base price of the Leaf by a bit over $6,000 to $28,800. Most of that price reduction is due to the fact that Nissan moved production of the Leaf from Japan to Tennessee for U.S. customers.

Source: Detroit News



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what a deal
By DockScience on 3/12/2013 2:49:02 PM , Rating: 2
The Leaf costs $17,000 MORE than the 40 mpg gas equivalent Nissan.

The Leaf can drive 70 miles before needing an overnight charge. (no green would ever consider charging during the day where peak power use would endanger society)

So the Leaf can save 1.75 gallons/day of gas. About $6.25 at current prices. But it takes about $3 of electricity to recharge the battery, so that's $3/day maximum net savings.

If you took that $17,000 and purchased dividend stocks, you would get over $800 per year in dividends AND see your capital appreciate while the $17,000 sunk in the Leaf depreciates away.

Assume you work 50 weeks each year, that 250 commute days.
The Leaf will "save" you $750 and eat your capital. But your investments could have made you $800 and GROW your capital.

Such a deal. No wonder these things are flying off the lots.




RE: what a deal
By SublimeSimplicity on 3/12/2013 3:09:27 PM , Rating: 5
Let me give you my actual money numbers. I'm leasing one for $233/mo. Most of the time I charge at work (don't even bother to plug in at home). My old car was costing me on average about $200/mo in gasoline (not counting maintenance and repairs).

So I'm effectively driving around a new car for $33/mo not including my state tax benefits and free access to toll roads.

Go ahead and hate the tax/toll benefits, but they exist, so you might as well use them.


RE: what a deal
By Reclaimer77 on 3/12/13, Rating: 0
RE: what a deal
By 1prophet on 3/12/2013 4:50:07 PM , Rating: 2
You mean like GE and other similar corporations using every loophole in the book to reduce their taxes and costs?


RE: what a deal
By SublimeSimplicity on 3/12/2013 5:32:55 PM , Rating: 2
I'm scum because I lowered my tax liability? So I should pay more taxes? Taxes are good? Paying taxes are patriotic? You're sounding like the liberals you claim to despise.


RE: what a deal
By Reclaimer77 on 3/12/13, Rating: 0
RE: what a deal
By SublimeSimplicity on 3/12/2013 8:42:46 PM , Rating: 2
I hate lobbyists, but if I'm invested in a company, they sure as **** better have some. I think the economist Tracy Marrow said it best, "Don't hate the playa hate the game".


RE: what a deal
By michael67 on 3/16/2013 11:07:37 AM , Rating: 2
So you blame him for taking the cheapest solution for his daily commute needs?

And there i was thinking that if people follow there own interest, its best for the marked.

ps. i drive a Think City, and do the same thing as he dose, charge it for free at work.

And as the car is almost maintenance free, it just cost me what i paid for it to drive, and that was secondhand $6000.


RE: what a deal
By EricMartello on 3/15/2013 4:02:21 PM , Rating: 1
quote:
Let me give you my actual money numbers. I'm leasing one for $233/mo. Most of the time I charge at work (don't even bother to plug in at home). My old car was costing me on average about $200/mo in gasoline (not counting maintenance and repairs).


Following this logic you may as well park your gas-powered car at work and siphon gas out of other peoples' tanks. That way you won't have to bother paying for gas at the pump.

quote:
So I'm effectively driving around a new car for $33/mo not including my state tax benefits and free access to toll roads.


Your tax benefits are another person's liability.

So let's recount what you've stated so far:

- You are stealing electricity from your place of employment to avoid paying for it yourself.

- You are stealing from society to subsidize a highly impractical mode of transportation.

- You publicly admit to driving one of the ugliest cars currently in production.

quote:
Go ahead and hate the tax/toll benefits, but they exist, so you might as well use them.


Great logic. Ignore the detrimental effect these handouts are having on our country and industry...as long as you can get your slice of the pie everyone else can go to hell.


I can fix their problem
By Dr of crap on 3/12/2013 12:44:45 PM , Rating: 2
It's very simple no one is buying them now.
Because now IT IS a niche market for these cars.
AND it will continue to be so for these reasons -
price
range
charge time

Right now these are just over priced golf carts that can't very far and need time to recharge. Also the range IS affected by temp if they want to publicly say so or not.

It would be better if they just came out and said that they NEED to keep offering them ( not selling ) BECAUSE of the new CAFE numbers, and if they don't sell so what.

That is what this is a PR move to get more to buy them. They can't pull the plug BECAUSE they need them for the CAFE numbers! Sorry about the pun!




RE: I can fix their problem
By Reclaimer77 on 3/12/2013 4:33:07 PM , Rating: 2
Exactly. What a wonderful thing Obama has done for the auto industry. Forcing them to develop EV's, which will be permanent loss-leaders, just to meet some artificial economy standard they arbitrarily came up with.


RE: I can fix their problem
By lennylim on 3/12/2013 5:00:15 PM , Rating: 2
*cough*

http://www.thecarconnection.com/news/1060552_georg...

But don't let me distract you from your Obama diatribe.


RE: I can fix their problem
By Reclaimer77 on 3/12/2013 5:11:55 PM , Rating: 2
Another "blame Bush" apologist angle.

quote:
Before Obama raised CAFE requirements, Bush did it.


LOL, that logic never gets old.

Look Bush screwed up too, on a lot of things. But so what? He's not in charge now. Obama sins are his own.

Raising CAFE is fine. Raising it to obscene levels all at once is not.

p.s. So when it's convenient, we accuse Bush for going to "war for oil". When it defends Obama, we also accuse him of pushing in EV's and hurting big oil....


By Dr. Kenneth Noisewater on 3/14/2013 1:06:03 PM , Rating: 1
CAFE is bullshit. Just raise gas taxes, so people will still have their choice in vehicle, they'll just have to take a hard look at what they need. Hell, higher gas taxes will make SUVs cheaper due to lower demand, so folks who _really_ want or need an SUV (such as parents of large families) will pay less for them (both new and used).

No Big Brother mileage taxes, no private enterprise-controlling CAFE, no EV mandates, just jack the crap out of gas taxes, like $3-4/gallon, and use that money only for infrastructure maintenance (at market rates, not Davis-Bacon), expansion, and maybe for paying down the national Debt once the federal budget has been slashed across the board by 45% and all special gimmes, subsidies, protections and privileges to the banksters, farmers and health industry folks have been abolished.


Battery Overheating
By btc909 on 3/12/2013 11:37:22 AM , Rating: 2
The battery overheating issue was never really addressed. Makes me want to go buy one living in So Cal.




By Dr. Kenneth Noisewater on 3/14/2013 1:08:22 PM , Rating: 2
Yep, looks more and more each day like the decision to cost-cut on the battery was a poor one, and if they can't weasel out of warranty replacements, an expensive one as well.

Lots of folks gave GM some crap about the complexity and cost of the Volt's comprehensive thermal management system, but it looks like GM has the last laugh.


Electric Car Division vs COO
By DaveLessnau on 3/12/2013 11:01:57 AM , Rating: 2
Where did the Electric Car Division fall in Nissan's corporate structure before? R&D? If so, then I'd guess this is actually putting the final nail in the coffin for the Leaf (regardless of the positive spin). With the Electric Car Division now under the Chief Operating Officer, I'd assume it would have to meet the same standards of profitability that Nissan's other vehicles have to meet. So, right now, the COO is probably saying something like "you have 6 months to show a profit (or at least keep one assembly line fully occupied). Otherwise, it's the axe for you."




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