Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Nissan Chief: Hybrid Cars Make No Sense
Reuters ^ | Sat Jan 29, 2005 07:44 PM ET

Posted on 01/31/2005 8:17:49 PM PST by newgeezer

NEW ORLEANS (Reuters) - The head of Nissan Motor Co., breaking ranks with some of his leading rivals, said on Saturday that building fuel-sipping hybrid vehicles makes little sense in today's world because of their high costs.

"They make a nice story, but they're not a good business story yet because the value is lower than their costs," said Nissan Chief Executive Carlos Ghosn.

Nissan will, in fact, start manufacturing a gas-electric hybrid version of its Altima sedan for the U.S. market in 2006.

But Ghosn said the model was only intended to help Japan's second-largest automaker comply with strict fuel economy and emissions standards in states like California, not because he expects it to be a money-maker.

Nissan will license some technology for the hybrid Altima from Toyota Motor Corp., which is the world leader in hybrid production along with Honda Motor Co. Ltd.

The hybrids made by Toyota and Honda are in high demand, but production levels are still relatively small.

Toyota plans to nearly double production of its hybrid Prius car for the U.S. market this year, with production totaling some 100,000 vehicles.

Ford Motor Co. is alone among U.S. automakers in producing mass-market hybrid models; Ford recently announced plans to introduce four new models between this year and 2008.

Ghosn's comments, which are likely to draw criticism from environmental groups, came in an address to the National Automobile Dealers Association, which opened its annual convention in New Orleans on Saturday.

In his speech, he noted that only about 88,000 of the 16.9 million light vehicles sold in the United States last year were hybrids, adding that they are still considered "niche" products and something way outside the automotive mainstream.

He also poured cold water on hydrogen fuel cell vehicles, which many automakers see as the industry's next big technological breakthrough.

"The cost to build one fuel cell car is about $800,000. Do the math and you figure out that we will have to reduce the cost of that car by more than 95 percent in order to gain widespread marketplace acceptance," Ghosn said.

Ghosn, who is credited with a dramatic turnaround at Nissan, is poised to take over as chief executive at France's Renault SA in May.

His future role, simultaneously running operations at two major automakers, is thought to be an industry first.

Nissan -- owned 44 percent by Renault -- scored the biggest sales jump of any major car maker in the United States last year, with a 24 percent surge to 986,000 vehicles.

--------------------------------------------------------------------------------

All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks or trademarks of the Reuters group of companies around the world.

© Reuters 2005


TOPICS: Business/Economy; Culture/Society; Extended News; Japan; US: California; US: Louisiana
KEYWORDS: automakers; automobiles; autos; cars; energy; environment; honda; hybrid; hybrids; insight; nissan; prius; toyota
Navigation: use the links below to view more comments.
first previous 1-20 ... 181-200201-220221-240241-251 next last
To: Dan Evans
So the Arabs might be able to raise the price, but they could end up with less revenue.

Hmmm...I bet the same thing happens when you raise taxes as well.

221 posted on 11/11/2005 10:32:55 PM PST by Republic of Texas (Socialism Always Fails)
[ Post Reply | Private Reply | To 111 | View Replies]

To: newgeezer

Personally, I like the GM displacement on demand technology to extract 28-30 MPG with 300+HP out of a REAL car with great styling, comfort, good durability, support Americans, and blow the doors off most of the ugly riceburner boxes on the road.


222 posted on 11/11/2005 10:37:49 PM PST by Proud2BeRight
[ Post Reply | Private Reply | To 1 | View Replies]

To: Boiler Plate
The Koreans have been at it for thirty years and their cars are still among the worst built.

Not quite -- Hyundai's quality has jumped up tremendously and so have their sales in the US (and worldwide). Their quality is now second only to Toyota's I think and they jumped to no.7 in car sales in the US in 2004.
223 posted on 11/11/2005 10:42:37 PM PST by Cronos (Never forget 9/11. Restore Hagia Sophia!)
[ Post Reply | Private Reply | To 150 | View Replies]

To: Dan Evans

Explains why Europe can't meet the Kyoto accord.


224 posted on 11/11/2005 10:43:45 PM PST by Westlander (Unleash the Neutron Bomb)
[ Post Reply | Private Reply | To 48 | View Replies]

To: blackie

Nader was an extreme reaction, granted. But his action did push Detroit (and the world) to make safer, more economical, more fuel-efficient cars. And for those against govt. legislation, remember that only the pushing made big business make the changes -- otherwise they could have continued producing the same-old, same-old with no pressures.


225 posted on 11/11/2005 10:47:03 PM PST by Cronos (Never forget 9/11. Restore Hagia Sophia!)
[ Post Reply | Private Reply | To 172 | View Replies]

To: CaptainTenneal; nightdriver
So for all people who live on a flat in Oregon and get constant 40 mph headwind, please go with diesel.

Droll, very droll.

I wonder what the results are for city drivin'?
226 posted on 11/11/2005 10:48:18 PM PST by Cronos (Never forget 9/11. Restore Hagia Sophia!)
[ Post Reply | Private Reply | To 177 | View Replies]

To: newgeezer

Horses made more sense than the first cars.
Sometimes you have to pay in order to make progress.
Most technologies in time if developed will become more cost effective.


227 posted on 11/11/2005 11:04:55 PM PST by voteconstitutionparty
[ Post Reply | Private Reply | To 1 | View Replies]

To: newgeezer

He's right...and he's moving there headquarters from liberal hell California to my city of Franklin, TN!


228 posted on 11/11/2005 11:06:49 PM PST by Fledermaus (Don't Ever Make Our Constituents Realize Any Truth)
[ Post Reply | Private Reply | To 1 | View Replies]

To: newgeezer

Prolly makes more sense for the USA to go for coal-oil conversion and burn the resulting gasoline in fuel efficient non-hybrid automobiles.

By coal I mean our huge Western coal reserves.


229 posted on 11/11/2005 11:13:35 PM PST by dennisw (You shouldn't let other people get your kicks for you - Bob Dylan)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Keeper of the Turf
Our next car is going to be the Accord Hybrid.

I bought one. It's cool and it's fast (255hp) but it doesn't get 38 highway. Well, at least not the way my wife drives it ;-)

230 posted on 11/11/2005 11:14:17 PM PST by VeniVidiVici (What? Me worry?)
[ Post Reply | Private Reply | To 20 | View Replies]

To: Cronos

The quality while new or newer is may be high, but like VW it drops off quickly. Furthermore the Korean vehicles are in the basement when it comes to safety.


231 posted on 11/12/2005 11:51:00 AM PST by Boiler Plate
[ Post Reply | Private Reply | To 223 | View Replies]

To: Cronos
Those $8 or $9 are worth a lot more in China than in the US due to PPP

Which is the whole point. The ChiComs do not want any money leaving the country.

232 posted on 11/12/2005 11:53:10 AM PST by Boiler Plate
[ Post Reply | Private Reply | To 215 | View Replies]

To: newgeezer
.....He's right, you know.....

Except it doesn't matter if you are young and female and powerless and want to be an advocate and make a difference. You can put your money where your hormones are and buy a hybrid. If it is red with a slight bluish cast, it will be irresistible.
233 posted on 11/12/2005 11:56:04 AM PST by bert (K.E. ; N.P . (FR = a lotta talk, but little action))
[ Post Reply | Private Reply | To 1 | View Replies]

To: CedarDave
This one will make the envirowackos go wild!"

What doesnt?

234 posted on 11/12/2005 11:58:26 AM PST by Windsong (FighterPilot)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Cronos

Problem is a lot of these projects are just PR. Hybrid became a fashion word used to proove something to green doofuses. People are paying extra for these things because they're so buzzword compliant, meanwhile my normal Sentra gets almost the exact same gas milage. I don't have a problem with developing fuel efficiency, but not every project under the banner of efficiency is actually useful.


235 posted on 11/12/2005 12:00:04 PM PST by discostu (When someone tries to kill you, you try to kill them right back)
[ Post Reply | Private Reply | To 218 | View Replies]

To: Boiler Plate
The quality while new or newer is may be high, but like VW it drops off quickly. Furthermore the Korean vehicles are in the basement when it comes to safety.

I would agree with that slightly -- they are rapidly improving. 5 years ago, your statement was absolutely correct. Today it may not be completely correct and if they keep improving, in 5 years, your statement would be completely false.
236 posted on 11/13/2005 9:10:36 PM PST by Cronos (Never forget 9/11. Restore Hagia Sophia!)
[ Post Reply | Private Reply | To 231 | View Replies]

To: Boiler Plate; NationSoConceived

How do you define "slave wages?" Did it ever occur to you that those women who leave the farm to work in factories in the Pearl River Delta are making eight times as much as they did on the farm? That many would be consigned to a life of prostitution if it weren't for the factories?


237 posted on 11/13/2005 9:16:46 PM PST by Clemenza (There is NO SUCH THING as "Slave Wages")
[ Post Reply | Private Reply | To 50 | View Replies]

To: Cronos
I would agree with that slightly -- they are rapidly improving. 5 years ago, your statement was absolutely correct. Today it may not be completely correct and if they keep improving, in 5 years, your statement would be completely false.

You got your crystal ball hooked up with an NOX kit? Trying to guess the future of automotive trends is dangerous business, just ask John DeLorean. It is best to deal with the facts as they stand today and not make so many assumptions. One thing you may not be aware of, is that in Korea there is a heavy penalty for owning a car older than 10 yrs. Therefore they do not design cars to last as long as other countries.

238 posted on 11/14/2005 12:25:23 PM PST by Boiler Plate
[ Post Reply | Private Reply | To 236 | View Replies]

To: Clemenza

I think you have entirely missed my point and if you want to argue about factory workers and prostitution in China you might want to take it up with somone else.

PS. What is the difference between slave labor and free labor?


239 posted on 11/14/2005 12:34:43 PM PST by Boiler Plate
[ Post Reply | Private Reply | To 237 | View Replies]

To: Boiler Plate
The workers who work at the plants that I visited are "free labor" in that they chose to work there for wages.

Contrary to Bircher propaganda, most of the folks who work in factories in China are paid wages and are free to work wherever they can find a job. Most factories in China are owned by private individuals, many of whom are part of the Chinese diaspora in Hong Kong, Singapore, Malaysia, etc.

There are factories in the prisons in China, but most of the goods produced go to the military or to the domestic market, not for export.

240 posted on 11/14/2005 12:45:46 PM PST by Clemenza (Save My Life I'm Going Down for the Last Time)
[ Post Reply | Private Reply | To 239 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-20 ... 181-200201-220221-240241-251 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson