Nissan Motor Co. began building a battery factory next to its main North American auto-assembly plant as Chief Executive Officer Carlos Ghosn predicts U.S. demand for electric vehicles will surge.
The plant in Smyrna, Tennessee, will be able to supply lithium-ion battery packs for 200,000 electric cars a year when it opens in 2012, more than the 150,000 rechargeable Leaf hatchbacks Nissan plans to build there annually. Japan's third- largest carmaker said yesterday its $1.7 billion investment in the Leaf and battery capacity in Tennessee, funded mainly by a $1.4 billion U.S. government loan, may create 1,300 local jobs.
"'We know that we are the most bullish on the market," Ghosn, who predicts global electric-car sales may reach 500,000 a year by 2012, said yesterday. "What we're doing here will radically transform the automotive experience for consumers."
Ghosn, 56, has set a goal for Nissan and its biggest shareholder Renault SA, which he also runs, to lead the market for electric autos as the U.S., Japan and Europe push automakers to cut oil consumption and carbon emissions tied to global warming. While General Motors Co., Toyota Motor Corp. and other rivals are readying their own rechargeable models, none matches Ghosn's 2012 sales target.
Nissan will gain economies of scale to reduce costs when demand reaches the predicted level, Ghosn said.
"I don't see this as a risk. I see this as a huge opportunity," Ghosn said at an event at the Smyrna factory. "When we get to 500,000, 1 million units, we don't need government support."
Nissan has received 13,000 pre-orders in the U.S. for the Leaf, Ghosn said.
The automaker fell 2 percent in Tokyo to 634 yen as of 9:32 a.m., while the benchmark Nikkei 225 index dropped 0.7 percent. Nissan's stock has declined 22 percent this year.
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