Nissan Expresses Worries Over Limited Nature Of Electric Car Subsidies

As Nissan strives to sell the Leaf electric car at an affordable price point, the company is expressing concerns that the current subsidies offered by governments to encourage EV adoption will expire after three years, hurting sales and pushing the cost of electric vehicles back into unattainable territory.

“My assumption is that they won’t be cut off but they might be pared back,” Nissan Vice-President Simon Thomas said. “There’s no obligation for governments to extend those programs beyond the definitive agreement — and in some countries we don’t have a definitive agreement.”

Nissan is struggling to keep the Leaf below 30,000 euros. The car will make its debut in Portugal and the Netherlands this December, because the two countries offer a 5,000 euro credit for electric vehicles.  However, the company said in an interview with the Wall Street Journal that the cars would turn a profit, likely around the third year of production.

[Source: Business Week]