Nissan Cannot Meet Demand for New Leaf EV, Production Shortages to Last Longer than Expected

It has been known for a while now that Nissan is struggling with the Leaf’s slow rollout. The demand for the all-electric vehicle is so high that the Japanese maker has been forced to stop receiving new orders and concentrate on filling existing ones. However, projected production figures show that the company will only assemble 10,000 units until March 31, while it has already received 27,000 orders from the U.S., Japan and Europe.

The remaining 17,000 orders are likely to be filled in the next fiscal year starting April 1, during which Nissan will reach the maximum production capacity of 50,000 units at the Oppama plant in Japan.

Consequently, the automaker could take 33,000 more orders in the next fiscal year, but it hasn’t decided yet when it will do so. According to Chief Operating Officer Toshiyuki Shiga, Nissan wants to “deliver enough volume to the first lot” before giving new orders the green light.

One solution would be the opening of new assembly lines sooner than initially planned, but Shiga ruled out the possibility due to the fact that work has just started on the factory that would provide the additional lithium-ion battery packs needed.

That means Nissan's UK factory will begin producing Leafs in 2012, followed by the Tennessee plant in 2013, so the shortage could last longer than expected.

Proposed Bill to Increase Number of Plug-in Hybrid and EVs Eligible for Federal Tax Rebate

Michigan congressmen Sander Levin and Carl Levin proposed a new piece of legislation on Wednesday, which would potentially increase the number of plug-in hybrid and electric vehicles eligible for the $7,500 tax credit from 200,000 to 500,000 per manufacturer.

“Green vehicles represent the vanguard of automotive innovation, but they have to be economical for consumers and profitable for manufacturers”, Sander Levin said in a statement. “Raising the cap on this credit will help carmakers reach the demand and production scale necessary for long-term viability," he added.

The bill was presented just one day after President Barack Obama reiterated the government's commitment to put 1 million eco-friendly vehicles on the road by 2015.

Introduced via the Recovery Act of February 2009, the current tax incentive applies to five vehicles – Chevrolet Volt, Tesla Roadster, Nissan Leaf, Coda sedan and Wheego LiFe –, with a per-manufacturer cap of 200,000 units.

The increased number of eligible cars should help keep EV and hybrid sales on track, as many of them are simply too expensive without the applied federal tax rebate. For example, the Chevrolet Volt sells for $41,000 (delivery included) before the tax break.

Additionally, the White House wants to take one step further and convert the $7,500 tax cut, which applies after the vehicle was bought, into a rebate that customers could use at the time of purchase.

President Obama also promised increased federal grants by as much as 30% for companies researching and developing batteries and electric drivetrains.

“With more research and incentives, we can break our dependence on oil with biofuels, and become the first country to have a million electric vehicles on the road by 2015”, Obama said in his State of the Union Address.

Last but not least, the U.S. administration is offering separate $10 million grants for as many as 30 cities across the country, which will be invested into public charging stations, electrified parking space access and fleet conversions.

Nissan Picks Up 2011 COTY Trophy for Leaf

Now, before someone adds a comment of the sort "in other related news, Audi unveiled the new A6", let us make it clear that we're not reporting on the actual Car of the Year (COTY) 2011 results, which were announced in late November 2010, but on the special ceremony that took place at the Pavillion Gabriel in Paris earlier this week to hand over the trophy to this year's winner, the new Nissan Leaf.

The trophy was received by Nissan Motor Co.'s President and CEO Carlos Ghosn, who of course, was extremely happy with the results.

"It is a great honor for Nissan LEAF to be recognized as the European Car of the Year - the first all-electric car to receive this distinction, " said Mr. Ghosn. "Like previous Car of the Year winners, Nissan LEAF is an appealing, competitive car, with no compromise on style, features, safety, performance or handling. Yet it stands apart as an innovative car that reflects a clear vision of the future of transportation - a vision of sustainable mobility."

Speaking at the ceremony Håkan Matson, president of the CoTY jury said: "I am convinced that we will see other electric cars named Car of the Year in the future. But when we do, we must always remember that only one can be the first. And that is why Nissan LEAF Car of the Year 2011 is - and will remain - so very special," said Håkan Matson, president of the CoTY jury, speaking at the ceremony.

You can view the results in detail here, but we'll remind you that the 58 jury members from 23 European countries placed the all-electric Nissan Leaf in first place with 257 points, followed by the Alfa Romeo Giulietta with 248 points and the Opel Meriva small MPV with 244 points. This is the second time Nissan has won the COTY, the first being in 1993 with the Micra, which became the first ever Japanese model to win the accolade.

EV Owners in California to Feel the Shock of Higher Electricity Rates

Woe betide the electric car. Outpaced by their petrol-powered cousins in the 1900s, saddled with heavy and potentially dangerous batteries in the 1970s and crushed in the name of the Almighty Dollar in the 1990s, it’s been a rough road from there to here.

And now, on the dawn of a new age where electric cars seem poised to take their rightful place alongside gasoline cars, the electricity companies are about to throw a wrench into the works. If you live in California and intend to buy a plug-in hybrid Toyota Prius or Chevrolet Volt or an all-electric Nissan Leaf, you could be in for a...shock.

If the energy giants have their way, the Chevy Cobalt, which would have to rate on my list as one of the least desirable cars built by GM, is more economical to own or operate than any of the above. The reason?

Essentially, The California government has approved its energy providers to impose higher rates on customers who exceed, “typical household levels” of energy use all in the name of conservation. So if, for example, you spend eight hours a night recharging your electric car, you’ll find yourself classed as one of these excess customers.

Wham, bam, the electricity companies charge you more than Mr. Joe Public next door who drives a Toyota Sienna and still has to pay for the good oil. And contrary to what you may of heard, it doesn’t matter if you recharge your car at night when the rates are lower; you’re still gonna take a hit to your hip pocket.

And it’s not like the California legislature is rushing to correct this oversight.

Wally Tyner, the James and Lois Ackerman Professor of Agricultural Economics, said that to make the Volt more economical than the Prius or the Cobalt, oil prices would have rise to between $171 and $254 per barrel, depending on which electricity pricing system is being used. Californians for example, pay an average of 14.42 cents per kilowatt hour, which is about 35 percent higher than the national average.

"People who view the Volt as green will pay $10,000 more over the lifetime of the car because it's green," Tyner said. "Most consumers will look at the numbers and won't pay that."

So until you’ve taken a pen and paper and worked out the real cost of owning an EV in California, maybe keep that Geo Metro for a while longer.

Source: Purdue University

Nissan's Leaf has Game-like Infotainment Screen so you can Beat your Friends at Saving the Environment

Nissan wants drivers of its new Leaf - which didn't seem to take as much time or PR mumbo-jumbo to reach the pavement as Chevy's Volt - to know everything there is to know about their cars and the trips being made in them.

In Nissan's case, trip transparency is provided by a handy-dandy system called CARWING. The program gives drivers a bucket o'information ranging from travel time to electricity consumption and "average energy economy" on daily, weekly, monthly or annual scales.

You can also compete with other owners for best efficiency levels (Bronze, Silver, Gold, and Platinum) thanks to some in-car "gaming". Thanks to MyNissanLeaf member gudy, we've got some screen shots of what the program looks like and some of the info available.

Take a look at the pics below and let us know if this kind of system would be of interest to "normy" car buyers. I'll vote...yes.