Sunday, May 11, 2008

Nissan : Going electric

On the coming Tuesday, Nissan Motor Company Limited (TYO:7201) is going to present its five year plan. The company that almost went out of business is now back again. Thanks to its major share holder Renault SA, the French car maker who came to its rescue. Under the leadership of Carlos Ghosn, the company has become profitable again. Now, with the rising oil price and growing environmental pressure, the auto maker is planning to produce electronic vehicle. The way oil price is rising, electric vehicle is going to be the next big thing. Times Online reports:

Nissan is sharing its electric- car expertise with its partner Renault and using the French brand. Ghosn has made an exclusive deal to supply cars to Israel as part of a state- backed venture that includes creating a network of roadside stations where cars can recharge their batteries.

Israel’s plan to be the first nation to encourage large- scale use of electric cars was developed after Ghosn met President Shimon Peres at last year’s Davos economic summit and heard of the infrastructure proposals of Shai Agassi, a Silicon Valley entrepreneur, who runs an initiative called Project Better Place.

Having no oil and being a small country where typical car journeys are short, Israel is regarded as an ideal testing ground for electric cars. The infrastructure will be in place by 2011 and, to encourage consumers to use electric cars, the government has set the purchase tax on them at 10%, rather than the regular 72%.

Ghosn has targeted Israel as the testing ground of Nissan’s electric car. The country is very small and does not have any oil. It is the best place for electric cars. From 2011, Israeli government is going to introduce tax breaks on zero emission cars. Ghosn expects to bring out electric car for mass market by 2011.

Related article:

Times Online