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Unlikely Partners, Nissan And China
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Tomorrow's electric car maker?
It's hard to imagine the Japanese working hand in hand with the Chinese, but when it comes to the building the automobile industry in China, the country will do whatever it takes.
The gist, Nissan should agree very soon to help China build an electric vehicle, EV program in major cities. The significance of this deal is highly important as both countries put aside their differences. Japan is desperately trying to get out of its economic nightmare, while struggling to maintain its automobile industry leadership. China, on the other hand is a new, vibrant and buzzing car market.
China, The Promised Land? Not so fast. Many car makers are vying a piece of the lie in China's booming car market. Nissan is a strong contender. After having struck a working deal with Better Place to build and provide EVs and their infrastructures for countries, such as Israel, Sweden, Portugal, Australia and Monte Carlo, China seems like a natural one.
A Strong Alliance. Nissan isn't alone, it has a strategic alliance with the French car maker Renault, which makes it ideally placed to conquer the Asian, Europe and the USA markets. Nissan is currently testing its all-electric EV-02, which is currently in the shape and form of its boxy looking Cube. So far the critics have been very positive, and at around $20,000 to 25,000, who wouldn't?
Embracing The Future. Not too many mainstream car makers have embraced the pure electric drive as much as Nissan has. It's President, Carlos Ghosn has been an active supporter for some time. Nissan should work with China's Ministry of Industry and Information Technology, as well as with the government of Wuhan for a pilot EV project. The car maker will provide free EVs and help develop a network of electric vehicle-charging stations.
Why China? Despite the obvious reasons, China is an expanding automobile market and has been actively promoting the use of alternative drive, especially electric. To help curb down on the explosion of cars and their ill effects on pollution, some of the country's biggest cities, such as Beijing and Shanghai were chosen by providing subsidies for all-electric battery cars, plug-in hybrids, PHEV and hydrogen-fuel-cell cars, FCV. China also has a strong battery market, lead by BYD, Build Your Dreams who has beaten other manufacturers by delivering a plug-in hybrid, PHEV to the market ahead of the competition. BYD is also a battery manufacturer. This project is expected to get 60,000 new-energy vehicles in service within four years.
In conclusion, Nissan is a company that has teamed up with strategic partners and is poised to reap the rewards of embracing at an early stage the electric drive. It will be interesting to see how well the company does in 2 years.
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