The head of Nissan Motor Co.Nissan Motor Co., said that building hybrid vehicles makes little sense because they cost so much to produce. "They make a nice story, but they're not a good business story yet because the value is lower than their costs," said Nissan Chief Executive Carlos Ghosn.
Nissan is to start manufacturing a gas-electric hybrid version of its Altima sedan for the U.S. market in 2006. But Ghosn said the model was only intended to help Japan's second-largest automaker comply with strict fuel economy and emissions standards in states like California, not because he expects it to be a money-maker.
Nissan will license some technology for the hybrid Altima from Toyota Motor Corp., which is the world leader in hybrid production along with Honda Motor Co. Ltd.. Ford Motor Co. is alone among U.S. automakers in producing mass-market hybrid models; Ford recently announced plans to introduce four new models between this year and 2008.
Ghosn continued by saying that only about 88,000 of the 16.9 million light vehicles sold in the United States last year were hybrids, adding that they are still considered "niche" products and something way outside the automotive mainstream.
He also dismissed what many automakers see as the industry's next big technological breakthrough; hydrogen fuel cell vehicles.
"The cost to build one fuel cell car is about $800,000. Do the math and you figure out that we will have to reduce the cost of that car by more than 95 percent in order to gain widespread marketplace acceptance," Ghosn said.
Ghosn, who is credited with a dramatic turnaround at Nissan, is poised to take over as chief executive at France's Renault SA in May.
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