Carlos Ghosn Bullish On Vehicle Electrification
It took approximately ten years to sell one million hybrid vehicles in the US, a number that is probably far below what advocates envisioned when the technology began to be mass marketed in the late 1990s. Back then, Honda and Toyota had the market to themselves, with few competitors on the horizon. Even today the two automakers sell far more hybrid models then their competitors, but that may soon change.
The Advancement of Hybrid Technology
Hybrid technology has been picked up by Ford who five years ago introduced its Ford Escape Hybrid and has since expanded to include a Ford Fusion Hybrid in the mix. GM and Chrysler have each jumped in while Volkswagen is leaning on its clean diesel technology to provide an alternative to gas powered vehicles.
Carlos Ghosn who is chairman and chief executive officer for both Renault and Nissan aims to be the first automaker to mass produce electric cars. While at least one Chinese automaker, BYD, is already producing electric vehicles as is Tesla Motors and soon, Fisker Automotive, Nissan says that it plans to put its first electric model on the market next year.
Not A Chevy Volt: Cheaper
According to the International Business Times, Nissan will roll out a model in 2010, at a price that makes ‘sense’ to the consumer. Ghosn pointed out that the GM Volt (Chevrolet Volt) will cost about $40,000 which is too high given that consumers can purchase an oil powered car for $15-20,000.
Quoting Mr. Ghosn: “Somebody’s got to invest massively and bring to the market zero emission cars, and we think we can do it,” Ghosn told CNBC in an interview from Tokyo. “We have the batteries and we are at the point where within 2010, cars that we will be putting in the U.S. market will be totally attractive to the consumers.”
Consolidation Underway in the Auto Industry
Ghosn also noted that the global auto industry is in a position to consolidate, pointing out that Fiat and Chrysler are in talks while other automakers are collaborating on technology. For example, last year BMW and Mercedes agreed to share some components, a step that some suggest will lead to the German arch-rivals eventually merging. Though that move could be many years off it could be pushed forward if economic forces create a sense of urgency.
With the world embroiled in a deep recession, further moves to join companies together could be on the horizon.
See Also — Nissan Poised to Eliminate Jobs, Transfer Production
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With GM out of the way, and Chrysler busy building “Ladas” I’m certain the Chinese cars will have a good chance at embedding, firmly under Hyundai products at first, then growing to higher places in the American market place, if the Korean folk don’t produce a superior gas or diesel Electric plug-in soon. Domestic car production is lost to the cost of laborers trying to live in a very complex and expensive U.S.A. and cars will be imported from now on. Soon the large trucks manufactured here will give away to Hino, Man, and perhaps some of the domestic Chinese Diesel models already on the roads in China, bugs worked out, and ready for export. The 11 new nuclear plants China is building at the moment, will certainly provide the power to build all the U.S. market can afford, and the unending, self perpetuating, resource stream of Chinese peasant labor from the country side has yet to falter, so look for good, cheap products from Asia , and say goodbye to the car and truck manufacturing here at home.
You have a good point, Uncle B. Good and perhaps fairly accurate.
At the rate things are declining, GM and Chrysler will be small or in the case of the latter, a non-factor in the industry. Ford may survive, but they’ll continue to be pressed as long as union labor costs exceed that of its competitors.
China remains an unknown, at least for the moment, but India will start selling Mahindra pick up trucks here this fall, probably followed by small cars.
Don’t underestimate the political will to throw up protectionist barriers which I may actually favor given the unfair and unethical advantage of the Chinese. If not, we’ll soon be driving copies of our favorite cars, vehicle designs swiped by the Chinese and incorporated in vehicles that they’ll be distributing all across the globe.
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