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Ghosn: 'We are getting there' on making Nissan Leaf profitable
autobloggreen ^ | October 2, 2014 | Sebastian Blanco

Posted on 10/03/2014 8:58:04 AM PDT by LogicDesigner

"We are getting into positive, which is good for this technology." – Carlos Ghosn

After 19 months in a row of record sales in the US, the money picture for the Nissan Leaf is steadily improving. To date (well, until the end of September), Nissan has sold 63,944 Leaf EVs in the US and a total of around 140,000 globally. The company produces the electric vehicle in three countries: Japan, the UK and the US and has sold more standard passenger EVs than any other automaker. Add all that up and you get to an EV that is just about to be profitable.

At least, it is according to Carlos Ghosn, the CEO of Renault-Nissan, who spoke to reporters at that Paris Motor Show this week. "We are getting there [to Leaf profitability]," Ghosn told Automotive News. "Are we amortizing and depreciating everything we have spent? No. But if you look at margin of profit – the direct cost of the car and the revenue of the car – we are getting into positive, which is good for this technology."

Automakers are notoriously closemouthed when it comes to sharing specifics about the higher cost of alternative vehicle technologies compared to standard ICE vehicles. Still, statements like this – as well as a knowledge about how long it took Toyota to make money from the Prius and overall industry amortization – show that Nissan could well be sitting pretty when it comes to keeping EVs around for the long term. Given some of the other news we've heard recently, it's got to be nice to have some stability.


TOPICS: Business/Economy; News/Current Events
KEYWORDS: automakers; electriccar; electriccars; energy; ev; leaf; nissan; plugin
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Here's an interesting side note. A lot of people dismissed the Toyota Prius as a money-losing failure in its early days. Now it is the third best-selling car line in the world and it is estimated they make $3,000 profit on each one, similar to what they make on conventional cars.
1 posted on 10/03/2014 8:58:04 AM PDT by LogicDesigner
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To: LogicDesigner

The Totoya Prius is a hybrid. Its a good car - combining the best advantage of the internal combustion engine - gas powered car with an electric assist battery. This technology is proven.

The Nissan Leaf on the other hand is an electric car and has more limitations than a hybrid. Its still nowhere close to being profitable.


2 posted on 10/03/2014 9:04:40 AM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: LogicDesigner

But the big difference is the Prius is a hybrid that allows unlimited range where the Leaf is limited to about 40-60 miles between charges.


3 posted on 10/03/2014 9:06:48 AM PDT by Blood of Tyrants (The cure has become worse than the disease. Support an end to the WOD now.)
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To: goldstategop
“The Nissan Leaf on the other hand is an electric car and has more limitations than a hybrid. Its still nowhere close to being profitable.”

Sure, its really just a commuter car or good as a second car in a two-car household.

It might be a few years before they make a profit as a whole, including development costs. But it seems, according to this article, they they are just starting to make a profit on a per-unit basis.

4 posted on 10/03/2014 9:10:53 AM PDT by LogicDesigner
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To: LogicDesigner
My diesel is rated by the EPA at 45mpg Highway.In reality it gets closer to 50mpg Highway.Under favorable conditions I can travel 700 miles (plus)on a tankful.And when it's empty I can "recharge" it in about four minutes at any one of 100,000 "recharging" stations from coast to coast and border to border.

Plug in vehicles? No thanks.Not in this lifetime...or the next.

5 posted on 10/03/2014 9:25:31 AM PDT by Gay State Conservative (Islamopobia:The Irrational Fear Of Being Beheaded)
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To: Gay State Conservative

If you need a longer range then a Chevy Volt would be a better fit. It is a plug-in hybrid: your first 40 miles every day would be electric and if you need to go further, it switches to a gas engine with a 340-mile gas tank.


6 posted on 10/03/2014 9:30:58 AM PDT by LogicDesigner
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To: LogicDesigner

didn’t the taxpayers build them a $1.4 billion battery factory?


7 posted on 10/03/2014 9:34:27 AM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: GeronL

You might be thinking of Tesla. Nevada gave them a tax holiday for ten or twenty years valued at $1.3 billion.


8 posted on 10/03/2014 9:37:01 AM PDT by LogicDesigner
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To: LogicDesigner

Nope.

Nissan is set to decide in a month whether to shut down the battery factory in Tenneessee which taxpayers have poured more than a billion dollars. They are thinking about buying their batteries from South Korea’s LG Chem instead.

http://www.reuters.com/article/2014/09/15/us-renault-sa-nissan-batteries-exclusive-idUSKBN0HA0CA20140915


9 posted on 10/03/2014 9:47:43 AM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: Blood of Tyrants; goldstategop; LogicDesigner
To say that the Prius is a hybrid is not accurate. The original Prius was a hybrid but the current Prius is a plug in hybrid.

Originally, the Prius was a hybrid because Toyota and Honda thought that was what buyers wanted. But the buyers converted the hybrids to plug-ins. So, Prius became a plug-in. Its not clear to me whether or nor Prius still makes the original Prius hybrid.

As near as what I can tell, the buyers want a 40 mile range in the electric mode for their daily commute and running errands, after which, if needed, they can fall back on the ICE.

OTOH, Musk seems to think an all electric with a 150-200 mile range for under $35,000(Tesla Model 3) will sell.

10 posted on 10/03/2014 9:48:11 AM PDT by Ben Ficklin
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To: Gay State Conservative

IIRC, there was a VW Rabbit diesel that got 45 MPG in 1981.


11 posted on 10/03/2014 10:02:36 AM PDT by Nowhere Man (Mom I miss you! (8-20-1938 to 11-18-2013) Cancer sucks)
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To: GeronL
“didn’t the taxpayers build them a $1.4 billion battery factory?”

Oh, you're talking about the loan that Nissan got. Considering the healthy financial situation at Nissan, I don't think we have to worry about getting paid back on that one.

12 posted on 10/03/2014 10:09:59 AM PDT by LogicDesigner
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To: Ben Ficklin
“To say that the Prius is a hybrid is not accurate. The original Prius was a hybrid but the current Prius is a plug in hybrid... But the buyers converted the hybrids to plug-ins. So, Prius became a plug-in. Its not clear to me whether or nor Prius still makes the original Prius hybrid.”

Hold on there, I'm a big plug-in fan but we need to make sure we keep the facts straight. The original Prius began sales in the U.S. in 2000 and the plug-in Prius began sales in 2012. In August, there were 818 plug-in Prius sold and 22,619 non-plug-in Prius sold.

“A few hundred” are believed to have converted their non-plug-in Prius to a plug-in.

13 posted on 10/03/2014 10:26:34 AM PDT by LogicDesigner
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To: LogicDesigner

Government should not be in the loan business, let banks do that


14 posted on 10/03/2014 11:53:35 AM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: LogicDesigner
It might be a few years before they make a profit as a whole, including development costs. But it seems, according to this article, they they are just starting to make a profit on a per-unit basis.

Of course, the purchase of their cars is subsidized by gov't tax incentives. Good for them to be hitting a profit point. Not so good for taxpayers.

15 posted on 10/03/2014 11:58:45 AM PDT by SoothingDave
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To: LogicDesigner
If you need a longer range then a Chevy Volt would be a better fit.

Chevy Volts are not selling, a failure. My daughter has a Nissan Altima Hybrid. She gets 700 miles on a tank of gas. And it'll run in electric mode as often as needed, then switches to the gas engine, and then back again. Push the start button and immediately silently pull away, all the time. I'm really impressed by it, when you need acceleration it pulls away quickly with lots of torque and leaves other cars in the dust. She's had it seven years without problems. Nissan was selling it while getting the Leaf off the ground.

16 posted on 10/03/2014 12:07:03 PM PDT by roadcat
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To: SoothingDave
“Of course, the purchase of their cars is subsidized by gov’t tax incentives. Good for them to be hitting a profit point. Not so good for taxpayers.”

Well, with all the crap in the Middle East and Russia, maybe it is worth it to reduce our oil dependence. Besides, Nissan has sold 64,000 Leafs (Leaves?) in the U.S.; once they hit 200,000 the subsidies phase out.

17 posted on 10/03/2014 1:09:41 PM PDT by LogicDesigner
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To: LogicDesigner

Maybe so. But any analysis of a corporation’s profit on an item should recognize that their “price” is artificially depressed. At their true price, sales would be lower.


18 posted on 10/03/2014 1:16:30 PM PDT by SoothingDave
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To: roadcat
“Chevy Volts are not selling, a failure.”

The Chevy Volt and Nissan Leaf started sales at the same time, in December 2010. Nissan has sold about 64,000 Leafs and GM has sold about 69,000 Volts. Some people pick on the Volt just because Obama sat in one once.

“My daughter has a Nissan Altima Hybrid... Push the start button and immediately silently pull away, all the time. I'm really impressed by it, when you need acceleration it pulls away quickly with lots of torque and leaves other cars in the dust... Nissan was selling it while getting the Leaf off the ground.”

Yea, the Leaf and Volt are like this too. I think a lot of conservatives would be converts if they took a test drive.

19 posted on 10/03/2014 1:19:47 PM PDT by LogicDesigner
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To: SoothingDave
“Maybe so. But any analysis of a corporation’s profit on an item should recognize that their ‘price’ is artificially depressed. At their true price, sales would be lower.”

No doubt. The point is to artificially boost sales in order to hasten the arrival of the day when we can put Putin, the sheiks, the mullahs, and all the other petro-tyrants of the world in the poorhouse.

20 posted on 10/03/2014 1:29:01 PM PDT by LogicDesigner
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