Home / Auto News / News article: Nissan Loses Money on Every Leaf Battery Replacement - AutoGuide.com News
 |  Jul 25 2014, 6:32 PM

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Nissan has admitted that it loses money on every Leaf battery replacement.

Last month, the automaker revealed that a battery replacement for the Leaf electric vehicle would run $5,500 including the old battery pack trade-in, prompting many to believe the Japanese automaker could build batteries for less than $250 per kilowatt-hour.

SEE ALSO: 2013 Nissan Leaf Review

But that’s not the case as the company admits it subsidizes the price of the new battery. Naturally, Nissan wouldn’t reveal how much of the cost is subsidized and how much the company actually loses on each battery replacement, but did iterate that it “makes zero margin on the replacement program,” according to Jeff Kuhlman, Nissan’s vice president of global communications.

The company has yet to sell one battery as part of the program and explained that subsidizing the replacement is a customer-first initiative.

GALLERY: 2013 Nissan Leaf

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[Source: Green Car Reports]

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