Nissan, Renault, and Mitsubishi have come up with a new cost-efficient strategy to manufacture electric cars at a faster rate. More precisely, the three companies will join their efforts to produce a single chassis which will be used in every electric vehicle of their car fleet.
Carlos Ghosn, Renault CEO, has been struggling to make sure that electric cars will have a lower retail price so that they can be cost competitive with standard cars. Although it is already clear that electric cars are way better than conventional cars, many of the customers worldwide don’t focus on quality.
Instead, they go for the most affordable product every time, and this rule applies to the car industry as well. However, electric cars reduce the environmental factors which cause pollution.
That is why many governments are issuing new regulations by offering a wide range of incentives to customers who decide to choose an electric car over a conventional one. For instance, in the United States, those who buy electric cars qualify for more than $7,000 in federal tax credits.
Also, they are provided with some non-monetary benefits too, such as free charging access, free parking in every city, and access to HOV among others. Furthermore, customers who buy conventional cars in China might wait for up to five years to be able to register their vehicles.
On the other hand, those who buy electric cars can register their vehicles immediately. China has issued this new policy because there are 106 cities across the country with more than one million residents, compared to the U.S., which has just eight.
It is worth mentioning that after Mitsubishi’s fuel economy issue had led the car manufacturer close to bankruptcy, Nissan took control of it. Based on the recent reports, the upgraded chassis will be implemented in the 2nd generation Nissan LEAF, which is expected to hit the market in 2018.
The three companies will substantially lower their costs because they will use one chassis instead of three. In addition to this, they will share other key features including the battery, motor, and the inverter, thus reducing the costs even more. Ghosn says that the standard electric cars in the Chinese market will have a retail price of roughly $8,000 or maybe less.