Nissan unveils full design of hatchback-type electric vehicle 'Leaf'+

YOKOHAMA, Aug. 2 Kyodo -
Nissan Motor Co. on Sunday unveiled the full design of its hatchback-type
electric vehicle ''Leaf,'' returning to its birthplace in the port city of
Yokohama with a product it hopes will enable it compete with popular hybrids
offered by its rivals.
Japan's third-largest automaker plans to launch the fully electric,
medium-sized family sedan in Japan, the United States and Europe in late 2010
and mass produce it globally from 2012.
''This car represents a real breakthrough,'' Nissan President Carlos Ghosn said
at the opening ceremony of Nissan's new eco-friendly headquarters in Yokohama,
Kanagawa Prefecture.
''For the first time in our industry history, a car manufacturer will
mass-market a zero-emission car -- an ultimate solution for sustainable
mobility,'' Ghosn said after he strolled onto the stage containing the sky-blue
Leaf with former Japanese Prime Minister Junichiro Koizumi at his side.
The EV, powered by lightweight and compact laminated lithium ion batteries
packed under the vehicle floor, will have a cruising range of more than 160
kilometers per charge and enough space to seat up to five people.
''The ride was smoother and quieter than I had expected,'' Koizumi said. ''The
use (of the EV) will definitely spread as we work to achieve a society free
from oil dependency.''
As well as taking the wraps off its long-awaited EV, Nissan also unveiled its
new building in Yokohama, more energy efficient than its previous premises in
Tokyo's Ginza district thanks to greater use of natural light, less reliance on
air conditioning and recycling of rainwater.
Ghosn has made it clear that the automaker is not simply targeting a niche
market, flaunting aggressive production targets that go well above those
announced by smaller domestic rivals that have made a head start in the EV
race.
As a mass-market car, EVs will eventually make up ''at least 5 percent or more
reasonably 10 percent'' of global car sales, Ghosn said.
''Affordability is also very important, so the Leaf's purchase price and cost
of ownership will be very competitive,'' he said, without disclosing the exact
price of the EV.
With $1.6 billion in low-interest loans secured from the U.S. government,
Nissan's U.S. plant in Smyrna, Tennessee, will have annual capacity to produce
150,000 EVs and 200,000 battery packs. Two battery plants will also be built in
Britain and Portugal.
Nissan will also start building EVs at its Oppama plant in Yokosuka, Kanagawa
Prefecture, from next fall with initial production capacity of 50,000 units a
year.
While Mitsubishi Motors Corp. and Fuji Heavy Industries Ltd. have already
rolled out their own EVs -- the ''i-MiEV'' and the Subaru Plug-in Stella --
earlier this summer, their production targets and capacity for the electric
motor and batteries fall short of Nissan's.
And Nissan says it has also added a fun element to driving an EV, including
keeping owners connected with their vehicles even when they are not behind the
wheel.
Its electric car will be equipped with a navigation map that will point out the
nearest charging station and a timer for pre-setting the air conditioner ahead
of a journey and for charging the battery in the evening when electricity fees
are lower.
While still undergoing testing with Apple Inc.'s iPhone prototype, Nissan also
plans to enable drivers to use their mobile phones to switch on the
air-conditioning timer and receive updates on charging status via e-mails sent
to their handsets.
That will allow the EV to save battery power by cooling the car while still
being charged with electricity, engineers said.
Electric car skeptics have repeatedly pointed to high costs and lack of
infrastructure, including high-speed charging stations, as major hurdles to
making EVs more accessible to consumers.
The barriers seem particularly high at a time when gas-electric hybrids like
Toyota Motor Corp.'s Prius and Honda Motor Co.'s Insight are topping Japan's
monthly list of best-selling vehicles on the back of recent government tax
breaks and subsidies for fuel-efficient cars.
While the price is not known, the Leaf is likely to be substantially lower than
the i-MiEV and the Subaru Plug-in Stella, which are priced at 4.59 million yen
and 4.73 million, respectively.
''The car minus the battery will be within the price range of a comparable
position car with an internal combustion engine,'' Ghosn said. Nissan's Tiida
sedan, which is similar to the Leaf, is currently sold for some 1.5 million
yen.
Nissan, which is 44 percent owned by Renault SA, has said it will maximize the
alliance with the French automaker to bring down costs. Speculation is rife
that it is studying ways to lease the batteries, which make up most of the
costs.
While analysts said it remains uncertain whether Nissan can lift slumping auto
sales with next year's EV launch, most agreed that if somebody is going to
drive the infant market, it will be Nissan.
''Once electric vehicles are in widespread use, Nissan has the potential to
quickly overcome its inferior position both domestically and overseas and start
leading the entire automobile market,'' Tsuyoshi Mochimaru, an auto analyst at
Barclays Capital Japan Ltd., wrote in a recent report.
And in order to stay competitive in the auto industry with cutting-edge
technology, Nissan said it is ready to take a bet on EVs.
''Every single decision like this, you have to take a risk,'' Ghosn told
reporters. ''If I had to take a risk, I am glad to take it.''
==Kyodo