Andy Palmer Nissan

8/6/2019 Andy Palmer Nissan

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THE BIG INTERVIEW32

Japanese automaker Nissan is hoping to steal amarch on its rivals with the Leaf, the rst mass-produced, affordable electric car. But will itszero emissions and wallet-friendly running costsbe enough to tempt motorists to swap triedand trusted petrol power for electric power?Julian Rogers investigates.

avenue


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THE BIG INTERVIEW 33

Eco-riendly electric vehicles (EVs) have been

trumpeted as the uture o motoring and a

credible replacement or the internal com-

bustion engine, as well as the ozone layers

saviour, or decades. Te rst EV was builtway back in 1891 but it is only recently that

manuacturers have made the technological break-

throughs to produce practical EVs on a mass scale with-

out exorbitant price tags. And 2011 is shaping up to be

the year o the EV as a glut o models hit markets around

the world. Customers in the US and Japan will take de-

livery o Nissans eort, the Lea, in the coming weeks

(both countries seeing 25,000 pre-orders combined) and

it is due to hit orecourts in the UK, Ireland and Portugal

early next year.

o an untrained eye the Lea looks like your aver-

age ve-seat amily hatchback, although the lack o

an exhaust pipe protruding rom the rear end oers

observant passers-by a clue as to this cars green cre-

dentials. In the cabin, the clean lines and space agewhite interior hint at a new era in motoring. Aesthet-

ics aside, there is one crucial dierence between the

Lea and the majority o other cars on the road: a plug

socket under the Nissan badge replaces the need to

ever ll up at the pumps. Te Leas lithium-ion bat-

teries generate a power output o 90kW while a gentle

whirring sound rom the electric motor replaces the

amiliar grunt o a petrol or diesel engine.

But the underlying problem Nissan and rival

manuacturers have to overcome is that although EVs

Nissans Andy Palmer proudly shows off the Leaf


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THE BIG INTERVIEW34

Apart rom perormance, the Lea s pice de rsistance

has to be its running costs. Te carmaker expects these to

be between 1.05 and 1.59 per 100km depending on where

in Europe the Lea is charged. Nissan also says its EV will

be on average 615 cheaper annually than a traditional car.

I you live in the UK, then the car is exempt rom road taxand the congestion charge in the capital, London. Despite

running costs looking particularly attractive compared

to prices at the pumps, critics point to the act that you

have to remember to plug the car into the mains or eight

hours when the battery needs charging. Palmer, however,

dismisses this as an inconvenience. I get rustrated when

I have to stop o on my journey to go to a gasoline sta-

tion, pull up, get my hands dirty and smelly because Im

using a diesel engine, stand out in the cold in the middle o

winter and ll my car up or ve minutes; thats an incon-

venience. Unsurprisingly, he paints a rosy picture when

living with the Lea: You never have to go to a uel station

but can simply plug your car into the mains, enjoy your

dinner and go to bed. You then wake up in the morning

already warmed up because you preset the heater and its

ready go.

On the ace o it, the 100-mile range might seem a tad

puny, ruling out a long motorway journey without having

to pull o and hunt or a charging point. However, Nissan

says UK motorists average just 30 miles a day. One charge

will last or three days so charging at home is pretty okay

or the majority, Palmer states, although he concedes that

a change o mentality is required while the driver waits 15

or 20 minutes or the battery to be 80 percent replenished.

sound all well and good, they are stigmatised by precon-

ceptions o being a bit na, to be perectly blunt. Slugg ish

acceleration and a disappointing top speed accompanies

that nagging ear that the battery will suddenly run dry,

leaving you stra nded on a motorway hard shoulder. Loud-

mouth motoring pundit Jeremy Clarkson once describedelectric cars as a bit like cod liver oil very good or you

but you would rather have a plate o steak a nd chips.

Nissan, Japans third-largest automaker, says these

are outdated misconceptions that couldnt be urther

rom the truth; the Lea boasts a 160km range o a

single eight-hour charge (a ast charge takes less than 30

minutes and replenishes the battery to 80 percent o its

capacity), a top speed o 144 km/h and its pretty zippy

when you pull away at the trac lights thanks to impres-

sive torque. Its our job to change the preconceptions,

says Nissan SVP Andy Palmer, the man charged with the

companys global EV development programme. I can

guarantee that i people drive the Lea, many o those

preconceptions will disappear the car is capable o over

90 mph so you can denitely lose your licence. Peror-

mance and cornering are sharp, he explains. In terms

o being un to drive, its extraordinary the handling is

amazing. Te Leas nimbleness can partly be attributed

to its low centre o gravity and lightness. Indeed, the EVs

today are busting myths about perormance and winning

the praise o car experts , such as seasoned motoring jour-

nalist Quentin Wilson, who recently described some o

the more sporty EVs rolling o production lines today as

blindingly good.

What the analysts say about EVs

Respected analyst rm Frost & Sullivan believe EVs are set to shake up the mainstream car market in the wake of rising concerns

over greenhouse gases and depleting fossil fuels. In their 2010 report,360 Degree Perspective of the Global Electric Vehicle Market,

Frost & Sullivan lay out their vision for the EV landscape and how the market will be shaped over the coming years. They say

advances in battery technology have been an underlying factor in mass-market production of EVs, creating a revolutionary business

case for the car industry. With the advent of lithium-ion battery technology and innovative nancial models, the automotive

industry is all set to witness a revolutionary business case, the author of the report states.

Frost & Sullivan also highlight how car manufac turers are working on business models that will make available the car and

energy under one roof, opening up a plethora of opportunities for utilities, suppliers and nance businesses. They also point to

a rising trend towards urbanisation, along with the emergence of mega and smart cities, which will be a boost for EV sales. The

report goes on to say that by 2020 the emergence of mega cities in developing economies will

drive personal mobility to a new level, adding to the demand for EVs. City layout will

play a part, too. Most ofces are expected to move to the rst-belt suburbs and

city centres will encompass the shopping areas (small-scale deliveries) and

living areas for double/single income, no kids households, says the

reports author. In mega cities, ofces and homes are likely to

be adjacent to each other, creating a favourable environment

for EV deployment. Its not all positive, though, with Frost

& Sullivan describing the prices of the initial wave of EVs

as being prohibitive. To counter this cost challenge,

the author notes, federal and local governments have

passed a series of legislation, benets and rebates to help

manufacturers sell their vehicles at affordable prices.

When youask customersin Europe, the

US and Japan,around eight or

nine percent arealready sayingthat their nextcar will be anelectric one

-Andy Palmer


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Decisions, decisionsMaking the switch to EVs in the rst place requires

a radical shif in mindset on the consumers part. Petrol-

heads are unlikely to give their gas-guzzlers the elbow,

even i they do drink uel like a 747 jumbo jet, but orthose motorists vexed by volatile petrol and diesel prices,

as well as the pollutants these ossil uels kick out, then an

EV could be the logical choice. Nissan, clearly at pains to

emphasize the cars greenness, has produced a viral V

advertisement in which a polar bear makes an arduous

trek south rom the North Pole across challenging terrain.

Te animal eventually arrives in suburbia and discovers a

motorist alongside his Lea beore giving the star tled man

a tender bear hug.

But lets be honest here; any EVs eco credentials are

likely to take a back seat to the miniscule running costs

electric-powered vehicles cost one-tenth the price to

power compared to their petrol cousins. So whi le you may

well stroke your chin in a moment o contemplative sel-congratulation over your planet-saving auto purchase, the

knowledge o never having to visit a ling station and part

with a wad o cash again is the USP or EVs. Tese negli-

gible running costs and the cars greenness are certainly

expected to appeal to the corporate market, even more so

amid these austere and carbon-conscious times as com-

panies get to grips with climate change targets. An added

bonus or business is that the Lea is ree o company car

tax or ve years.

Nissans sales team guides customers through a

decision tree based on their driving habits to ascertain

- Needs to be plugged into

the mains and charged forup to eight hours

- 100-mile range wont suit

long distance commuters

- Charging station

infrastructure could be lacking

- Not cheap to buy, even after incentives

+ Running costs are one-tenth

the price of petrol-powered

vehicles

+ Makes lling station

forecourts a thing of the past

+ No greenhouse gases

+ Exempt from vehicle excise duty in the UK,

company car tax for ve years and Londons

congestion charge

Nissan Leaf: the pros and cons

The Leafboasts a

160km range

off a single8-hourcharge

CEO Carlos Ghosn says EVs will account for 10 percent of allcars on the road by 2020


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THE BIG INTERVIEW36

whether or not an EV is right or them. By some time be-

tween 2015 and 2020, Palmer expects around 10 percent

o Nissans customers to be suited to the EV range. For the

time being, though, the EV market is miniscule less than

0.1 percent o the 26 million cars on UK roads are powered

by electricity. However, a raf o manuacturers are looking

to tip the balance o power with their new EV models set to

hit car showrooms in the next 12 months or so.

Nissan CEO Carlos Ghosn condently predicts the

global EV market will account or 10 percent o all auto-

motive sales by 2020. When you ask customers in Europe,the US and Japan, around eight or nine percent are already

saying that their next car will be an electric one, Palmer

reinorces. He admits that these gures are perhaps

slightly skewed by consumers being conused by the di-

erence between EVs and hybrid vehicles and other pure

gasoline- and diesel-powered alternatives, but 10 percent

wont be ar wide o the mark. I dont think 10 percent

as a projection is an unrealistic number as there will be

a prolieration in EVs; even in 2010 there are already a

number o hand-raisers. By being the rst to launch a

mass-production EV, Nissan believes its vehicles can ac-

The Leaf boats an IT system that, once connected

to a global data centre, can provide support,

information and entertainment for drivers 24

hours a day. The dash-mounted monitor displays

the Leafs remaining power or reachable area as

well as showing nearby charging stations. Owners

are able to use their mobile phones to set charging

functions and turn on air conditioning prior to

journeys, even when the vehicle is powered down.

An on-board remote-controlled timer can also

be pre-programmed to recharge batteries. It alsocomes with sat-nav and a parking camera.

count or the lions share o that 10 percent. In the US, the

worlds biggest car market, analyst rm Frost & Sullivan

are orecasting that just one to three percent o vehicle

sales 400,000 to 500,000 will be electric. By 2020 this

percentage will rise to ve to seven percent and 10 percent

by 2025 clearly indicating an uphill task around the

corner or EV manuacturers.

At the moment, Nissans order book or the Lea

contains the so-called early adopters o new technology

keen to get behind the wheel o the rst serious EV. But

one potential barrier to the cars widespread appeal is theless than appealing cost. Te Lea, including the battery,

will set UK buyers back a cool UK23,990, even afer a

UK5000 government grant has been taken into account.

Te slightly prohibitive pricing, at a time when household

budgets are stretched, may be a shock or some, but you

could consider it a bargain compared to Mitsubishis soon-

to-launch dinky electric run-around, the iMiEV, which

was a whopping UK38,000 beore incentives. However,

Mitsubishi has recently slashed the price by UK10,000

which, when the electric car grant is included, puts it on a

par with the Lea or price.


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City run-around

Mitsubishis diminutive i-MiEV is

clearly aimed at those looking for a

nifty urban hatchback for popping

to the shops and squeezing into

awkward parking spaces. Due to be

released in January 2011, the i-MiEV

can hit a top speed of 130km/h and

like the Nissan Leaf, can be fast

charged from zero to 80 percent

capacity in 30 minutes. With

the UK government grant, this EV will set you back a shade under

UK24,000 and includes a ve-year, 100,000km warranty for the battery

and EV components. Best of all, this car will cost just UK10-worth of

electricity to fuel it to run 1600km.

Family workhorse

German thoroughbred

Mercedes has just unveiled

its electric car the A-Class

E-CELL with a 200km range

on a single charge and a top

speed of 151km/h. The ve-

seat EV hatchback is based

on the regular A-Class with

the electric motor mounted

where the petrol or diesel

engine usually sits. Mercedes

claims the car will hit 60km/h from a standing in start in 5.5 seconds

thanks to the low-end acceleration. As elec tric cars go, this is sure to havetraditional German build quality combined with reliability. Its good-

looking too. At this stage, however, the makers are staying tight-lipped

about the price.

Sporty number

Who said electric power means

sacricing driving performance?

California-based Teslas Roadster

2.5 certainly delivers all the

thrills and spills of a traditional

petrol-powered sports car,

minus the exhaust pipe. Tesla

claims the Roadster can reach

a mighty impressive 339km

range off a single charge and

can hit 100km/h in less than

four seconds. Teslas Christiano

Carlutti says its a car that can be

used on a daily basis but boasts

performance that often surprises test-drivers. Once they drive the car

they nd the experience overwhelming. They get out of the car and say

I didnt think this was possible. It also comes with a sporty price tag:

UK87,945.

Palmer argues that the aorementioned running costs

mean his car is still good value, particularly in mature

markets like the UK. Obviously, some people will reject it

but in the mature markets people are going to look at the

cost o running the car. I remember my dad 20 years ago

calculating the miles per gallon o diesel and the distancehe drove and discovering that it was cheaper than a gaso-

line engine car. Te cost o electricity is one-tenth the cost

o gasoline so yourre going to be running it a hell o a lot

cheaper on a day-to-day basis and avoiding the congestion

charge i you live in London. Te subsidies in global mar-

kets will be vital. We really do need those government

subsidies in the rst instance in order to give us the mass

[production] in order to help us bring down the cost o the

technology, Palmer explains.

As well as purchasing costs, concerns linger over

whether there will be an adequate charging inrastruc-

ture in place or when the car needs a top up. Tere may

be an abundance o petrol lling stations, including the

obligatory supermarket oering, but charging stations

could end up being ew and ar between more than a

small inconvenience or those needing to make a long

journey. Palmer says most drivers will charge at home

but the inrastructure is required to reduce anxiety. He

too admits to apprehension: Yes, we do have a concern

that the charging inrastructure wont be in place and that

would reduce the people on the buy list . He explains that

Nissan is only releasing the Lea in countries committed

to rolling out the EV inrastructure, as well oering in-

centives to buyers. Somewhat surprisingly, its Ireland and

Portugal rather than the US or Japan that are currently the

most aggressive in striving to create that inrastructure.

Tey will make sure there is a robust grid in place by thetime we launch the car.

Lasting legacyInitially, global production will come rom Nissans

Oppama plant in Japan but rom 2013 the car will be built

in Sunderland, in the North-East o England, saeguard-

ing thousands o jobs in the afermath o t he toughest eco-

nomic period or decades. Nissan also has another three

EVs in development that could ollow hot on the wheels o

the Lea. I EVs capture the publics imagination, then t he

prospects or the Lea and Nissans subsequent EVs look

promising. For Palmer, the emergence o EV is just anoth-

er step on the technology process ladder. Te automotive

industry has made dramatic changes over the years; theytend to be on an evolutionary basis, lit tle steps o improve-

ment, but when you look back over time, the change is

dramatic. I thin k EV is one o those periods in time where

you make a dramatic jump orward in the technology that

you might call a new dawn. And although prising motor-

ists, especially in the US, away rom their love aair with

petroleum vehicles wont be achieved overnight, Palmer

sums up the EVs benets neatly: For me, its about the

driving being un, youre saving money and knowing that

youre doing something or the planet. I would say thats

interesting or consumers. n

Te outside lane: rival EVs

Documents

Andy Palmer Nissan