Nissan tells Bloomberg news that its electric vehicles wouldn’t be profitable without government help.
“The speed of which you get returns depends upon mass production. The second thing that it relies upon is government incentives,” Andy Palmer, Nissan’s senior vice president of product planning, said in an interview yesterday. “That helps our cost of entry, helps our cash flow and will help the first and the second generation vehicles to exist.”
Development costs for an electric cars “significantly” exceed the $300 million to $500 million Nissan normally spends on a new model because of the expense of the batteries, Palmer said. The automaker is now preparing to produce about 350,000 electric vehicles a year globally.
“Without government aid, the business would be unrealistic,” said Yasuaki Iwamoto, an auto analyst at Okasan Securities Co. in Tokyo. “The support helps with the high cost of developing the batteries.”
Business Insider Emails & Alerts
Site highlights each day to your inbox.