Nissan Plans Both EV And Hybrid Models

The Nissan Motor Company entered the hybrid fray late, licensing technology from its arch-rival, Toyota, in order to offer a hybridized Altima to the market. That move means that Toyota is profiting off of every Altima sale, something that Nissan management has to swallow at least for now.

But Nissan isn't sitting still when it comes to alternative energy powered vehicles. The automaker is developing a pure electric drive train which will power a Sentra sized car beginning in 2010 while it has also managed to develope its own hybrid technology, something it will begin to phase in over the coming year or two.

Nissan Loan To Reconfigure Tennessee Plant

Nissan recently received a $1.6 billion loan from the U.S. Government which must be used to build hybrids and other fuel efficient models at one of its Tennessee plants. Although Nissan isn't quite ready to convert the factory completely to electric and hybrid technology as it weighs consumer demand, the Tennessee set up will allow the company to operate a full range of vehicles on the same assembly line in the meantime. Once consumer interest kicks in, then Nissan can quickly produce more EV and hybrid models without reworking the assembly line.

Most hybridized models cost at least $25,000 while getting a fully electric model to the market for under $30,000 may be a bit of a challenge. Nissan is counting on early adopters to fuel interest in its first electric model, but may not be able to sell these cars at a price most buyers can afford. Fortunately, a $7500 federal tax rebate will help, an amount the US government is setting aside for buyers of pure electric vehicles.

Nissan, Renault Joined At The Hip

Nissan and Renault each own stakes in the other and are run by Carlos Ghosn, one of the best known faces in the auto industry. Ghosn has helped the Japanese and French automakers work together on a number of projects including providing Nissan vehicles for Renault's Samsung operation in South Korea as well as collaborating on projects that will likely yield additional hybrid and electric vehicles for Renault.

Both companies have been struggling of late, but if Nissan can get its hybrid and electric program going, there could be little that will stop the Renault-Nissan juggernaut from expanding and picking up additional market share. That will help Nissan set itself apart from the pack, relying on its own technology which it, too, could resell to its competitors much as Toyota has done with its hybrid engineering.