Nissan Leaf Won't Turn A Profit Until Year Three Of Production
There’s no such thing as a get rich quick scheme, and Nissan knows this, even as demand for their new Leaf electric car outstrips supply. Any new technology takes a significant amount of time to turn a profit, as development costs must be amortized. One can imagine how expensive a car with an $18,000 battery must have been to develop.
Brian Carolin, Nissan’s U.S. sales and marketing head told the Wall Street Journal that “Over the course of the vehicle life, it is profitable – in year three.” While three years is a not a small amount of time (most vehicles have a five year life cycle) the long road to profitability is an inevitable part of the road to making EV’s profitable, one that companies like Nissan will have to incur if electric cars wish to go mainstream.
[Source: Wall Street Journal]
More by Derek Kreindler
Comments
Join the conversation