Nissan to Produce 50,000 Hybrid Cars a Year for US Market

Strategic Insights -

Nissan, in partnership with Toyota, is set to commence production of up to 50,000 hybrid petrol-electric cars annually for the US market, starting next year. The company's decision comes as the automobile industry witnesses a surge in demand for fuel-efficient vehicles, particularly hybrid models, following the success of Toyota's Prius. However, Nissan's CEO, Carlos Ghosn, has expressed concerns regarding the cost of the technology, citing the possibility of losing money on the Altima hybrid model.

Key Takeaways:

  • Nissan will produce up to 50,000 hybrid cars a year for the US market, starting next year.
  • The company will use electric components purchased from Toyota, marking a significant milestone in the partnership between the two Japanese rivals.
  • Nissan's Altima hybrid model is expected to be loss-making, with CEO Carlos Ghosn citing the high cost of technology as a concern.
  • The demand for hybrid vehicles has increased significantly since the release of Toyota's Prius, prompting other manufacturers, such as Ford and Honda, to develop similar models.
  • Ford's Escape hybrid was voted US truck of the year at the Detroit motor show, while Toyota's Prius was named 2007 US car of the year.
  • Honda expects to sell over 50,000 hybrids in the US this year, with the vehicles barely breaking even.
  • Nissan and Honda may need to expand their production capacity in North America due to strong sales, with Nissan's two factories already at full capacity.
  • Honda's executive vice-president, Tom Elliott, expects sales to reach 1.45m this year, compared to the current capacity of 1.4m.

Statistics:

  • Nissan will produce up to 50,000 hybrid cars a year for the US market.
  • The company will use Toyota's electric components in the hybrid models, marking a significant partnership.
  • 100,000 hybrid cars were the initial sales expectation over five years, as per the 2002 licensing agreement between Toyota and Nissan.
  • Toyota has sold more Prius hatchbacks than expected, with the vehicle being named 2007 US car of the year.
  • Ford's Escape hybrid was voted US truck of the year at the Detroit motor show.
  • Honda expects to sell over 50,000 hybrids in the US this year.
  • Honda's sales are expected to reach 1.45m this year.
  • Nissan's two factories in the US are currently at full capacity, with production expansion likely required to meet demand.

Sources:

  • "Nissan, the Japanese carmaker controlled by Renault, will be able to build up to 50,000 hybrid petrol-electric cars a year for sale in the US once production starts next year, the company said yesterday." - Nissan
  • "Toyota, the world's second-largest carmaker, has sold far more Prius hatchbacks than it expected and it was picked as last year's US car of the year." - Toyota
  • "Ford's Escape hybrid - which uses Toyota technology - was voted US truck of the year at the Detroit motor show earlier this week." - Ford
  • "Honda would sell more than 50,000 hybrids in the US this year. But the vehicles would earn only "barely" above break-even." - Honda
  • "Mr Ghosn said Nissan would build its fuel-efficient version of the hybrid Altima saloon at a factory in the US, using electric components bought from Japanese rival Toyota." - Nissan