Is Nissan setting up a bad trend with buyout strategy?

[TomT]

Nope, a number of companies made/make EVs largely for offset credits and corporate CAFE, and to sell the credits to someone else. Nissan was underwater on this and the Leaf helped them in that regard. Certainly not the only reason but definitely not an insignificant one...

I think the Leaf is actually worth more to Nissan as emission credits than profits... It allows them to continue selling their behemoth gas vehicles which DO generate large profits...

Thats a joke right?

 

[cwerdna]

I see no compelling argument or reason to believe this...

They won can Leaf. They'll come up with gen 2 that should hold the value better.

If "won" is supposed to be "won't", I tend to agree with TomT.

If it becomes too big a money loser for Nissan and its side benefits (e.g. CAFE credit, ZEV credit, green rep, image, bringing people into the showroom and then buying other Nissans, etc.) aren't worth it, they might can it.

As for the latter... I have no idea how they'd pull that off, short of offering offering fewer incentives and juicy lease prices, which will depress sales...err sales and leases.

 

[GetOffYourGas]

Nissan seems to believe that the future will be electric - eventually. They want to be ready for that future, but don't really want to "lead" us into it. Tesla is the only one who really wants to bring it about.

If the markets show signs of retreating from an electric future, I don't see why Nissan would NOT kill their EV program. One example would be a massive roll out of hydrogen fueling stations. Or any other alternative fuel, I suppose. Frankly, I don't see any of that happening.

 

[jlsoaz]

I think it is quite simple actually. It should be clear by now than Nissan is not making any profit on the Leaf. If Leaf 2 is released and it continues this trend, which seems to be likely, I seriously doubt we'll ever see Leaf 3.

In itself, I guess a decent point, though I think Nissan will take some measures to try to make Leaf 2 a success. Then you toggle over to this in a different part of the thread:

[...] Don't forget this is an artificial market created by the government, if it ceases to exist before EV's can become a self sustainable product so will the EVs, perhaps with the exception of those that are sold in the luxury segment.

[edited]
So really, in some aspects of this discussion, you're not just talking about the Leaf. In some ways, you seem to be talking about all BEVs with the possible exception (you're not sure about even this) of luxury BEVs. I'm not quite sure where you stand on the market market for BEVs if there were no government incentives. I don't know if you're including PHEVs in these views, so I've written out BEV.

I agree (to some extent) that unless Nissan gets its act in gear (and they are taking a *lot* of time in bringing out a longer range BEV), it is a fair question to ask how they can sustain the Leaf program. I suspect they'll come up with some answers, but it seems a fair question. I would ascribe much more importance to longer range than it seems you would.

I agree (to some extent) that unless the other BEV makers get their act in gear and maker longer-range BEVs available, they also will be in danger of having to exit. It may be that some of them would like this, but it is what it is.

I also do think that low gasoline prices in the US are a significant headwind to demand.

I disagree with some of this:

Should the entire conversation be carried out without even mentioning planned more affordable longer-range BEVs? It should mention them, IMO.

Are there not presently indications of demand for longer-range affordable BEVs? I think there are such indications.

Do all batteries presently on the market "suck"? I don't think so.

Should we not also pay some mind to what is going on outside the US with sales of higher kWh BEVs? I think so. It adds a bit of understanding that these are not decisions that are just for the US, .... whether for Nissan or for other companies.

 

[PowayDon]

Gas prices are low in the US but I wouldn't call $4.00 a gallon in San Diego cheap.
Thanks to my solar PV, I pay .17 per kwh for my Leaf so it's a lot cheaper and helps smooth out range anxiety.