32 THE BIG INTERVIEW

avenue
Japanese automaker Nissan is hoping to steal a
march on its rivals with the Leaf, the first mass-
produced, affordable electric car. But will its
zero emissions and wallet-friendly running costs
be enough to tempt motorists to swap tried
and trusted petrol power for electric power?
Julian Rogers investigates.

E
co-friendly electric vehicles (EVs) have been
trumpeted as the future of motoring and a
credible replacement for the internal com-
bustion engine, as well as the ozone layer’s
saviour, for decades. The first EV was built
way back in 1891 but it is only recently that
manufacturers have made the technological break-
throughs to produce practical EVs on a mass scale with-
out exorbitant price tags. And 2011 is shaping up to be
the year of the EV as a glut of models hit markets around
the world. Customers in the US and Japan will take de-
livery of Nissan’s effort, the Leaf, in the coming weeks
(both countries seeing 25,000 pre-orders combined) and
it is due to hit forecourts in the UK, Ireland and Portugal
early next year.
THE BIG INTERVIEW 33
Nissan’s Andy Palmer proudly shows off the Leaf
To an untrained eye the Leaf looks like your aver-
age five-seat family hatchback, although the lack of
an exhaust pipe protruding from the rear end offers
observant passers-by a clue as to this car’s green cre-
dentials. In the cabin, the clean lines and space age
white interior hint at a new era in motoring. Aesthet-
ics aside, there is one crucial difference between the
Leaf and the majority of other cars on the road: a plug
socket under the Nissan badge replaces the need to
ever fill up at the pumps. The Leaf’s lithium-ion bat-
teries generate a power output of 90kW while a gentle
whirring sound from the electric motor replaces the
familiar grunt of a petrol or diesel engine.
But the underlying problem Nissan and rival
manufacturers have to overcome is that although EVs
34 THE BIG INTERVIEW

“When you sound all well and good, they are stigmatised by precon-
ceptions of being a bit naff, to be perfectly blunt. Sluggish
ask customers acceleration and a disappointing top speed accompanies
in Europe, the that nagging fear that the battery will suddenly run dry,
leaving you stranded on a motorway hard shoulder. Loud-
US and Japan, mouth motoring pundit Jeremy Clarkson once described
around eight or electric cars as “a bit like cod liver oil – very good for you
nine percent are but you would rather have a plate of steak and chips”.
Nissan, Japan’s third-largest automaker, says these
already saying are outdated misconceptions that couldn’t be further
that their next from the truth; the Leaf boasts a 160km range off a
car will be an single eight-hour charge (a fast charge takes less than 30
minutes and replenishes the battery to 80 percent of its
electric one” capacity), a top speed of 144 km/h and it’s pretty zippy
-Andy Palmer when you pull away at the traffic lights thanks to impres-
sive torque. “It’s our job to change the preconceptions,”
says Nissan SVP Andy Palmer, the man charged with the
company’s global EV development programme. “I can
guarantee that if people drive the Leaf, many of those
preconceptions will disappear – the car is capable of over
90 mph so you can definitely lose your licence.” Perfor-
mance and cornering are sharp, he explains. “In terms
of being fun to drive, it’s extraordinary – the handling is
amazing.” The Leaf ’s nimbleness can partly be attributed
to its low centre of gravity and lightness. Indeed, the EVs
today are busting myths about performance and winning
the praise of car experts, such as seasoned motoring jour-
nalist Quentin Wilson, who recently described some of
the more sporty EV’s rolling off production lines today as
“blindingly good”.
Apart from performance, the Leaf’s pièce de résistance
has to be its running costs. The carmaker expects these to
be between €1.05 and €1.59 per 100km depending on where
in Europe the Leaf is charged. Nissan also says its EV will
be on average €615 cheaper annually than a traditional car.
If you live in the UK, then the car is exempt from road tax
and the congestion charge in the capital, London. Despite
running costs looking particularly attractive compared
to prices at the pumps, critics point to the fact that you
have to remember to plug the car into the mains for eight
hours when the battery needs charging. Palmer, however,
dismisses this as an inconvenience. “I get frustrated when
I have to stop off on my journey to go to a gasoline sta-
tion, pull up, get my hands dirty and smelly because I’m
using a diesel engine, stand out in the cold in the middle of
winter and fill my car up for five minutes; that’s an incon-
venience.” Unsurprisingly, he paints a rosy picture when
living with the Leaf: “You never have to go to a fuel station
but can simply plug your car into the mains, enjoy your
dinner and go to bed. You then wake up in the morning
already warmed up because you preset the heater and it’s
ready go.”
On the face of it, the 100-mile range might seem a tad
puny, ruling out a long motorway journey without having
to pull off and hunt for a charging point. However, Nissan
says UK motorists average just 30 miles a day. “One charge
will last for three days so charging at home is pretty okay
for the majority,” Palmer states, although he concedes that
a change of mentality is required while the driver waits 15
or 20 minutes for the battery to be 80 percent replenished.

What the analysts say about EVs

Respected analyst firm Frost & Sullivan believe EVs are set to shake up the mainstream car market in the wake of rising concerns
over greenhouse gases and depleting fossil fuels. In their 2010 report, 360 Degree Perspective of the Global Electric Vehicle Market,
Frost & Sullivan lay out their vision for the EV landscape and how the market will be shaped over the coming years. They say
advances in battery technology have been an underlying factor in mass-market production of EVs, creating a revolutionary business
case for the car industry. “With the advent of lithium-ion battery technology and innovative financial models, the automotive
industry is all set to witness a revolutionary business case,” the author of the report states.
Frost & Sullivan also highlight how car manufacturers are working on business models that will make available the car and
energy under one roof, opening up a plethora of opportunities for utilities, suppliers and finance businesses. They also point to
a rising trend towards urbanisation, along with the emergence of mega and smart cities, which will be a boost for EV sales. The
report goes on to say that by 2020 the emergence of mega cities in developing economies will
drive personal mobility to a new level, adding to the demand for EVs. City layout will
play a part, too. “Most offices are expected to move to the first-belt suburbs and
city centres will encompass the shopping areas (small-scale deliveries) and
living areas for ‘double/single income, no kids’ households,” says the
report’s author. “In mega cities, offices and homes are likely to
be adjacent to each other, creating a favourable environment
for EV deployment.” It’s not all positive, though, with Frost
& Sullivan describing the prices of the initial wave of EVs
as being “prohibitive”. To counter this cost challenge,
the author notes, federal and local governments have
passed a series of legislation, benefits and rebates to help
manufacturers sell their vehicles at affordable prices.
 THE BIG INTERVIEW 35

CEO Carlos Ghosn says EVs will account for 10 percent of all
cars on the road by 2020

Nissan Leaf: the pros and cons

Decisions, decisions
The Leaf Making the switch to EVs in the first place requires
boasts a a radical shift in mindset on the consumer’s part. Petrol- + Running costs are one-tenth
160km range heads are unlikely to give their gas-guzzlers the elbow, the price of petrol-powered
off a single even if they do drink fuel like a 747 jumbo jet, but for vehicles
8-hour those motorists vexed by volatile petrol and diesel prices,
charge as well as the pollutants these fossil fuels kick out, then an + Makes filling station
EV could be the logical choice. Nissan, clearly at pains to forecourts a thing of the past
emphasize the car’s ‘greenness’, has produced a viral TV
advertisement in which a polar bear makes an arduous + No greenhouse gases
trek south from the North Pole across challenging terrain.
The animal eventually arrives in suburbia and discovers a + Exempt from vehicle excise duty in the UK,
motorist alongside his Leaf before giving the startled man company car tax for five years and London’s
a tender bear hug. congestion charge
But let’s be honest here; any EV’s eco credentials are
likely to take a back seat to the miniscule running costs
– electric-powered vehicles cost one-tenth the price to
power compared to their petrol cousins. So while you may - Needs to be plugged into
well stroke your chin in a moment of contemplative self- the mains and charged for
congratulation over your planet-saving auto purchase, the up to eight hours
knowledge of never having to visit a filing station and part
with a wad of cash again is the USP for EVs. These negli- - 100-mile range won’t suit
gible running costs and the car’s ‘greenness’ are certainly long distance commuters
expected to appeal to the corporate market, even more so
amid these austere and carbon-conscious times as com- - Charging station
panies get to grips with climate change targets. An added infrastructure could be lacking
bonus for business is that the Leaf is free of company car
tax for five years. - Not cheap to buy, even after incentives
Nissan’s sales team guides customers through a
‘decision tree’ based on their driving habits to ascertain
36 THE BIG INTERVIEW
The Leaf boats an IT system that, once connected
to a global data centre, can provide support,
information and entertainment for drivers 24
hours a day. The dash-mounted monitor displays
the Leaf’s remaining power or ‘reachable area’ as
well as showing nearby charging stations. Owners
are able to use their mobile phones to set charging
functions and turn on air conditioning prior to
journeys, even when the vehicle is powered down.
An on-board remote-controlled timer can also
be pre-programmed to recharge batteries. It also
comes with sat-nav and a parking camera.
whether or not an EV is right for them. By some time be-
tween 2015 and 2020, Palmer expects around 10 percent
of Nissan’s customers to be suited to the EV range. For the
time being, though, the EV market is miniscule – less than
0.1 percent of the 26 million cars on UK roads are powered
by electricity. However, a raft of manufacturers are looking
to tip the balance of power with their new EV models set to
hit car showrooms in the next 12 months or so.
Nissan CEO Carlos Ghosn confidently predicts the
global EV market will account for 10 percent of all auto-
motive sales by 2020. “When you ask customers in Europe,
the US and Japan, around eight or nine percent are already
saying that their next car will be an electric one,” Palmer
reinforces. He admits that these figures are perhaps
slightly skewed by consumers being confused by the dif-
ference between EVs and hybrid vehicles and other pure
gasoline- and diesel-powered alternatives, but 10 percent
won’t be far wide of the mark. “I don’t think 10 percent
as a projection is an unrealistic number as there will be
a proliferation in EVs; even in 2010 there are already a
number of ‘hand-raisers’.” By being the first to launch a
mass-production EV, Nissan believes its vehicles can ac-
count for the lion’s share of that 10 percent. In the US, the
world’s biggest car market, analyst firm Frost & Sullivan
are forecasting that just one to three percent of vehicle
sales – 400,000 to 500,000 – will be electric. By 2020 this
percentage will rise to five to seven percent and 10 percent
by 2025 – clearly indicating an uphill task around the
corner for EV manufacturers.
At the moment, Nissan’s order book for the Leaf
contains the so-called early adopters of new technology
keen to get behind the wheel of the first serious EV. But
one potential barrier to the car’s widespread appeal is the
less than appealing cost. The Leaf, including the battery,
will set UK buyers back a cool UK£23,990, even after a
UK£5000 government grant has been taken into account.
The slightly prohibitive pricing, at a time when household
budgets are stretched, may be a shock for some, but you
could consider it a bargain compared to Mitsubishi’s soon-
to-launch dinky electric run-around, the iMiEV, which
was a whopping UK£38,000 before incentives. However,
Mitsubishi has recently slashed the price by UK£10,000
which, when the electric car grant is included, puts it on a
par with the Leaf for price.
 THE BIG INTERVIEW 37

Palmer argues that the aforementioned running costs

mean his car is still good value, particularly in mature
The outside lane: rival EVs
markets like the UK. “Obviously, some people will reject it
but in the mature markets people are going to look at the City run-around
cost of running the car. I remember my dad 20 years ago Mitsubishi’s diminutive i-MiEV is
calculating the miles per gallon of diesel and the distance clearly aimed at those looking for a
he drove and discovering that it was cheaper than a gaso- nifty urban hatchback for popping
line engine car. The cost of electricity is one-tenth the cost to the shops and squeezing into
of gasoline so your’re going to be running it a hell of a lot awkward parking spaces. Due to be
cheaper on a day-to-day basis and avoiding the congestion released in January 2011, the i-MiEV
charge if you live in London.” The subsidies in global mar- can hit a top speed of 130km/h and
kets will be vital. “We really do need those government like the Nissan Leaf, can be fast
subsidies in the first instance in order to give us the mass charged from zero to 80 percent
[production] in order to help us bring down the cost of the capacity in 30 minutes. With
technology,” Palmer explains. the UK government grant, this EV will set you back a shade under
As well as purchasing costs, concerns linger over UK£24,000 and includes a five-year, 100,000km warranty for the battery
whether there will be an adequate charging infrastruc- and EV components. Best of all, this car will cost just UK£10-worth of
ture in place for when the car needs a top up. There may electricity to fuel it to run 1600km.
be an abundance of petrol filling stations, including the
obligatory supermarket offering, but charging stations Family workhorse
could end up being few and far between – more than a German thoroughbred
small inconvenience for those needing to make a long Mercedes has just unveiled
journey. Palmer says most drivers will charge at home its electric car – the A-Class
but the infrastructure is required to reduce anxiety. He E-CELL – with a 200km range
too admits to apprehension: “Yes, we do have a concern on a single charge and a top
that the charging infrastructure won’t be in place and that speed of 151km/h. The five-
would reduce the people on the buy list.” He explains that seat EV hatchback is based
Nissan is only releasing the Leaf in countries committed on the regular A-Class with
to rolling out the EV infrastructure, as well offering in- the electric motor mounted
centives to buyers. Somewhat surprisingly, it’s Ireland and where the petrol or diesel
Portugal rather than the US or Japan that are currently the engine usually sits. Mercedes
most “aggressive” in striving to create that infrastructure. claims the car will hit 60km/h from a standing in start in 5.5 seconds
“They will make sure there is a robust grid in place by the thanks to the low-end acceleration. As electric cars go, this is sure to have
time we launch the car.” traditional German build quality combined with reliability. It’s good-
looking too. At this stage, however, the makers are staying tight-lipped
Lasting legacy about the price.
Initially, global production will come from Nissan’s
Oppama plant in Japan but from 2013 the car will be built Sporty number
in Sunderland, in the North-East of England, safeguard- Who said electric power means
ing thousands of jobs in the aftermath of the toughest eco- sacrificing driving performance?
nomic period for decades. Nissan also has another three California-based Tesla’s Roadster
EVs in development that could follow hot on the wheels of 2.5 certainly delivers all the
the Leaf. If EVs capture the public’s imagination, then the thrills and spills of a traditional
prospects for the Leaf and Nissan’s subsequent EVs look petrol-powered sports car,
promising. For Palmer, the emergence of EV is just anoth- minus the exhaust pipe. Tesla
er step on the technology process ladder. “The automotive claims the Roadster can reach
industry has made dramatic changes over the years; they a mighty impressive 339km
tend to be on an evolutionary basis, little steps of improve- range off a single charge and
ment, but when you look back over time, the change is can hit 100km/h in less than
dramatic. I think EV is one of those periods in time where four seconds. Tesla’s Christiano
you make a dramatic jump forward in the technology that Carlutti says it’s a car that can be
you might call a new dawn.” And although prising motor- used on a daily basis but boasts
ists, especially in the US, away from their love affair with performance that often surprises test-drivers. “Once they drive the car
petroleum vehicles won’t be achieved overnight, Palmer they find the experience overwhelming. They get out of the car and say
sums up the EV’s benefits neatly: “For me, it’s about the ‘I didn’t think this was possible.’” It also comes with a sporty price tag:
driving being fun, you’re saving money and knowing that UK£87,945.
you’re doing something for the planet. I would say that’s
interesting for consumers.” n