Nissan will cut battery manufacturing due to slow demand for electric cars

Article by Christian A., on September 19, 2014

Nissan builds its own electric-vehicle batteries through a joint venture with NEC Corp. But since chief executive Carlos Ghosn is bent on reducing in-house battery making, the carmaker may soon order EV batteries from LG Chem or eventually from other suppliers. "We will have both, and I hope even more," Ghosn said.

While the joint venture – AESC – currently builds batteries for Nissan, Ghosn is also exploring an agreement wherein LG Chem would build power packs at the carmaker’s sites in the United Kingdom or the United States, a source told Reuters. Nissan’s plan entails phasing out production at its plants in the UK and in the US while cutting down output of next-generation batteries at its site in Japan, two alliance sources told Reuters.

The sources added that Nissan would follow the lead of alliance partner Renault in ordering cheaper batteries from LG Chem for some future vehicles. One executive at Nissan told Reuters that while the carmaker wanted to be a leader in battery manufacturing, such operations has become less competitive than initially planned.

He noted that AESC is still between six months and a year behind LG in price-performance terms. The sources disclosed that a decision on Nissan’s battery plants in the UK and the UK will be out in October, following a tense procurement review with Renault.

Another source said that while Renault would prefer to outsource its EV batteries, Nissan engineers would prefer to stay in-house. "The write-off costs are potentially huge," the source noted.

Alliance spokeswoman Rachel Konrad, however, said that that Renault-Nissan is still fully committed to its EV program and is not planning write down battery investments.

She remarked that the alliance has not made any decision over battery sourcing allocation. Despite the remarks, the sources told Reuters that Nissan is already in talks with NEC Corp. on the shift to dual sourcing.

If you liked the article, share on:

Topics: nissan, electric car

Comments

Recommended

Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
The 2018 Jaguar XEL with its stretched-out wheelbase and longer doors is the newest addition to the growing list of premium sedans in China---joining the ranks of Mercedes-Benz C-Class L,...
by - November 21, 2017
Honda this week announced that its all-new 2018 Clarity Plug-in Hybrid will arrive at US dealerships with a starting price of $33,400 beginning on the first of December. Because the...
by - November 21, 2017
Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries