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Nissan: We lose money on each Leaf replacement battery

Nissan has been playing its cards pretty close to its chest when it comes to the production costs for Leaf battery packs. The company recently put a price on replacement batteries for customers at $5,500 plus the requirement to return the old battery. If the decommissioned battery is worth $1,000 to Nissan, as they have stated, that means the battery costs about $6,500 to make, right? Maybe even less if Nissan wants to turn a profit, as automakers are wont to do? Wrong.
Green Car Reports spoke to Nissan about these battery costs, and found that the automaker actually loses money on selling the replacement battery for the Leaf at the current price. Jeff Kuhlman, Nissan's vice president of global communications said, "Nissan makes zero margin on the replacement program. In fact, we subvent every exchange." All you English majors will know that "subvent" is a fancy way to say "subsidize." Kuhlman added, though, "We have yet to sell one battery as part of the program."
The fact that Nissan offers its replacement batteries for less than it costs to manufacture them is telling of a company both cares about what its customer needs and is dedicated to the success of its product. In this case, both of those things encourage people to give up fossil fuels and adopt electric mobility, which is heartening. As more people switch to battery-powered driving, though, battery technology should become better and cheaper, and the scale of production should cause manufacturing costs to decrease. Eventually, Nissan could easily see itself breaking even selling the Leaf battery replacements.

Japanese automakers welcome North American trade deal, fear what's next

TOKYO — Toyota, Nissan and Mazda welcomed on Tuesday the revised North America trade deal that left Japanese automakers unscathed, but they may face a bumpy ride when Washington and Tokyo hold new talks on over $40 billion of annual U.S. auto imports from Japan. The United States and Canada reached an agreement on Sunday to update the 1994 North American Free Trade Agreement after Washington had forged a separate trade deal with Mexico in August. The updated deal effectively maintains the auto industry's current footprint in North America, and spares Canada and Mexico from the prospect of U.S. national security tariffs on their vehicles. Mazda, which ships cars to the United States from Mexico and Japan, called the deal a "big step forward". Nissan, which makes the cars it sells in the United States locally as well as in Mexico, Japan and other countries, said it was "encouraged" by the agreement. Toyota, Japan's biggest automaker, said it was "pleased" that a basic deal was reached. Other automakers were not immediately available for comment. While the deal has removed the risk that the disintegration of the pact would have posed to automakers, bigger risks loom large for Japanese firms as a chunk of the roughly 7 million cars they sold in the U.S. last year were shipped from Japan, and a trade deal between Washington and Tokyo has yet to be agreed. The United States and Japan last week agreed to begin fresh trade talks, with U.S. President Donald Trump seeking to address Japan's $69 billion trade surplus, of which nearly two-thirds comes from auto exports. Washington is also investigating the possibility of slapping 25 percent tariffs on auto imports on national security grounds, although it has agreed with Japan to put any new tariffs on hold during the talks. Analysts say the United States may take a tougher stance on auto imports from Japan than from its neighbors. "If Japan requests an exemption from the 25 percent tariffs under consideration, Washington could propose a more strict cap on imports than it agreed to with Mexico and Canada," said Koji Endo, senior analyst at SBI Securities. "That would be a risk." This could be a big blow to Japan, as the United States is a key source of revenue for Japanese automakers including Toyota, Nissan and Honda. The U.S. market accounts for a quarter or more of their annual global vehicle sales, and of their total U.S.

Daimler and Nissan to build luxury cars at new plant in Mexico

A few years back, when Daimler was looking for a partner to spread the cost of development of small cars, it agreed to collaborate with Nissan on future products, such as vehicle platforms and drivetrains. The latest development in the collaboration concerns the assembly of small luxury cars for Infiniti and Mercedes-Benz at a Nissan plant in Mexico, two unnamed sources told Reuters.
The plant in question, Aguascalientes, is a $2 billion project that will open later this year next to an existing Nissan factory. The upcoming Infiniti Q30 four-door hatchback is expected to be built there, possibly alongside the Mercedes GLA-Class, which is one of several candidates Mercedes is considering to build at this facility, Reuters reports. The GLA will debut at the Frankfurt Motor Show this month, and initial production of the model will take place in Germany. The Q30 could follow a similar path, with assembly starting at Nissan's Sunderland plant in the UK, and then expanding to Aguascalientes later on.
The underlying platform of the Q30 and GLA, codenamed New Generation Compact Car (NGCC), was developed by Daimler. The Q30 would be the first Infiniti produced under the automakers' agreement. Last year, Nissan agreed to make engines that would find their way into Mercedes and Infiniti vehicles.