Nissan: Government support vital to EV success | CarAdvice

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Nissan: Government support vital to EV success

By Tim Beissmann
FIND DEALS

Nissan’s global product planning chief says government support is the key to the successful introduction of electric vehicles and admits the take-up of cars like the Nissan Leaf in Australia will be hampered without any significant state or federal contribution.

Nissan global general manager of product strategy, advanced and exploratory planning Francois Bancon told journalists at the Australian launch of Nissan’s first electric car, the Leaf, that EVs could not succeed without governments buying into the technology.

“Yeah, [government support] is the key,” Bancon said. “This technology is expensive, the car is expensive.

“Where we sell the best is where the governments offer their support … which is not only the incentive for the direct purchase, but also they are investing in the infrastructure.”

Australia’s federal government offers no incentives or support for EV buyers, which means Leaf customers will be forced to fork out $51,500 before on-road costs for the Mazda3-sized five-door hatchback. Some states provide minor financial support, with the ACT offering free stamp duty and Victoria shaving $100 off EV registration.

The US is one of the leaders in green car support, offering incentives for owners at a federal, state and local level. As a result, more than 11,000 Leafs have been sold in the US since December 2010, accounting for 40 per cent of total global sales.

With a manufacturer’s list price of US$35,200 ($34,800) already well below that charged in Australia, Leaf customers are eligible for an income tax credit of up to US$7500 from the federal government, slashing the price to $US27,700 ($27,400) – roughly the same price as the top-spec Nissan Altima medium sedan.

A number of states provide cash rebates on top of the federal contribution further reducing the initial outlay, while many councils offer discounted electricity rates for EV owners, give drivers access to high-occupancy vehicle lanes and allow EVs to park for free, including at airports.

Nissan Australia CEO and managing director Bill Peffer confirmed the company has held a number of discussions with the federal government about EV support in the past and plans to continue those talks to reduce the financial burden for EV buyers.

Other EV manufacturers are also hurting without support. Despite being publicly available in Australia since August 2011, just 12 Mitsubishi i-MiEV electric cars have been purchased by private buyers according to the industry’s VFACTS sales data, with that car’s $48,800 starting price proving a major stumbling block.

Nissan Australia executive general manager marketing Peter Clissold said it was also important for governments to show leadership in terms of developing adequate infrastructure to support EVs.

“None of us thinks twice about our tax dollars going towards maintaining the highways and off ramps and the street lights,” Clissold said.

“What it is really going to require I think is expanding our horizons in that regard and viewing charging stations as today’s version of an off ramp or a highway. I think when the public puts pressure on officials in that regard we’ll see some things change.”

Private companies are so far leading the way in developing Australia’s electric vehicle infrastructure. In 2008, American-Israeli group Better Place announced it was aiming to raise $1 billion to begin the deployment of an EV network in Australia, and has so far installed 94 charge points across the country.

Clissold likened the current situation to a chicken and egg battle, but remains hopeful the government will come on board with additional support.

“We’re entering into a new phase of personal transportation,” he said. “In this case the privateers are out in front of the public entities. Our hope is that the public entities will catch up as they have in other countries.”


 

  • Smart US

    the car is overpriced in comparo to USA!!! Nissan comes here – rip you off and asking money from gov??!?!?!? is this for real??? 

    • F1MotoGP

       Compare to US we got better health care, compare to China we got cleaner air…etc. Why compare? Sometimes the grass looks greener on the other side but when you are there you will realize Australia is still Number ONE!

    • Victor Ortegón

       DO people actually understand that Australia has less than a 14th of the
      USA population? Just make the math, it is impossible to have the same
      prices that America has, when your market is a 86% smaller. think of the
      running costs of distribution against the size of the market.

      It
      is true this doesn’t apply, for virtual products, like I tunes songs
      and software, where there are NO distribution or running expenses. But
      when you have to move several hundred million tons around the world, to
      sell a tiny fraction of your product in a much smaller scale, well
      everyone with over 2 brain cells attached together can understand why
      the end price would be higher. Also the interest rates in America and
      even Europe are higher than the Australian ones, so car companies have
      another source of income when they finance their own cars. These
      days you can get for even 0% interest for 36 months  here in OZ (its crazy!) So
      please stop start reproducing, or just stop winging abut the price
      difference!

  • Daniel Dacey

    While the government does have a role, I would imagine the installation of power stations for EV’s and quick charging stations, is more the responsibility of the electric utilities and the oil companies – both of which stand to profit long term if they do so. 

    I trust they don’t both expect the taxpayer to build the infrastructure and gift it to them?

    • Ben

      Are you serious? Who do you think built the utilities in the first place. The Government…. Therefore the taxpayer. 
      And yes, then it was gifted.  It is just the way large infrastructure is done. Historically anyway.

      But you are correct in bringing it to today’s situation where these are privately held, so yes they should be large part of the solution.

  • Guest99

    One of the reasons I won’t get this car is that you can’t go on any trips after work.

  • Paz

    There can be no justification for that difference in manufacturer’s list price.  I liked the i-MIEV, but couldn’t bring myself to pay $20,000 more than necessary.

    • Victor Ortegón

       Ill reply here as well

       DO people actually understand that Australia has less than a 14th of the USA population? Just make the math, it is impossible to have the same prices that America has, when your market is a 86% smaller. think of the running costs of distribution against the size of the market.

      It is true this doesn’t apply, for virtual products, like I tunes songs and software, where there are NO distribution or running expenses. But when you have to move several hundred million tons around the world, to sell a tiny fraction of your product in a much smaller scale, well everyone with over 2 brain cells attached together can understand why the end price would be higher. Also the interest rates in America and even Europe are higher than the Australian ones, so car companies have another source of income when they finance their own cars. These days you can get for even 0% interest for 36 months  here in OZ (its crazy!) So please stop start reproducing, or just stop winging abut the price difference!

      Plus the difference between minimum wages 17.10 AUD against 7.25 USD per hour

  • tsport100

    $50k sounds like a bargain when you compare the $100k difference between the US and AU price of a Tesla Roadster!

  • No fears

    Tesla for local production anyone?Every carmaker here gets a hand out mostly for producing vehicles that are from another age,so why not susidise the innovators?
    The plug in petrolelectric VOLT gets subsidised in the form of a tax credit in the USA.
    Alternatively here in OZ it might be more effective to subsidise the set up of charging stations on highways provided by electricity retailers or at larger petrol stations that could be credit card operated or used with a card linked to your energy account at home.
    Charging needs to be easy & convenient away from home for these cars to be practical.
    .

  • FN five seven

    yeah yeah we’ve known for a long time this government is not interested in global warming or climate change, julia gizzards just wants to get her grubby little hands on hard working aussies money and give it bludgers to buy votes. carbon tax was a right royal shaft up the date hole wasnt it, about the same time the government took away green energy rebates (solar panels, green building offsets) and all the labor clowns were still bedazzelled… ooh its for the environment. bunch of monkeys

  • http://pulse.yahoo.com/_6ZQHML4W2NGIYK4AFA47WMEPKI timmyt

    Well then, let EV’s fail. I personally don’t care if EV’s do or don’t get up in the market place. I’m happy to let the marketplace determine if they are ready for primetime or not, government handouts had no role in the development in the automobile, I can’t see why EV’s can’t evolve to be competitive on their own merits. Though I am getting tired of multi-national automotive giants asking the  Australian government for handouts every other week.

    • Ben

      I agree with most of this, but to think the automobile would be where it is today and has been for a very long time without government assistance the world over is just naive. 

      Just one example… try driving on all those very expensive roads that the industry built. Oh yeah.. Wasn’t the industry after all.

    • Norm

      “government handouts had no role in the development in the automobile” 

      Your kidding aren’t you? Go get a history lesson.

  • http://www.halongvictorycruises.com/ Halong Victory Cruise

    I can’t see why EV’s can’t evolve to be competitive on their own merits.

  • http://www.reddragonjunks.com/ Red Dragon Cruise

     I can’t see why EV’s can’t evolve to be competitive on their own merits.

  • http://www.reddragonjunks.com/ Red Dragon Cruise

    Alternatively here in OZ it might be more effective to subsidise the set up of charging stations on highways provided by electricity retailers or at larger petrol stations

  • http://victorycruiseshalong.com/ Victory Cruise Halong

    Though I am getting tired of multi-national automotive giants asking the  Australian government for handouts every other week.

  • Red Dragon Junk

    Secondly it has ESC a very dangerous technology (not enough room to explain here except to say it’s the equivalent of a blind driver taking control in an emergency – the sysrem has no knowledge of how the vehiucle is loaded

  • Red Dragon Junk

    Alternatively here in OZ it might be more effective to subsidise the set up of charging stations on highways provided by electricity retailers or at larger petrol stations that could be credit card operated or used with a card linked to your energy account at home. 

  • luckystar89

    I trust they don’t both expect the taxpayer to build the infrastructure and gift it to them

  • Victor Ortegón

    And I forgot to compare the minimum wages between USA and Australia:
     7.25 USD per hour (around 6.96 AUD) against
    17.10 AUD per hour

    You do the math..