The Nissan Leaf, the Alternative Fuel Electric Car

By Julian Rogers

Japanese automaker Nissan is hoping to steal a march on its rivals with the Leaf, the first mass-produced, affordable electric car. But will its zero emissions and wallet-friendly running costs be enough to tempt motorists to swap tried and trusted petrol power for electric power? Julian Rogers begin_of_the_skype_highlighting     end_of_the_skype_highlighting investigates.

“When you ask customers in Europe, the US and Japan, around eight or nine percent are already saying that their next car will be an electric one.”
-Andy Palmer

Eco-friendly electric vehicles (EVs) have been trumpeted as the future of motoring and a credible replacement for the internal combustion engine, as well as the ozone layer's saviour, for decades. The first EV was built way back in 1891 but it is only recently that manufacturers have made the technological breakthroughs to produce practical EVs on a mass scale without exorbitant price tags. And 2011 is shaping up to be the year of the EV as a glut of models hit markets around the world. Customers in the US and Japan will take delivery of the Nissan Leaf in the coming weeks (both countries seeing 25,000 pre-orders combined) and is due to hit forecourts in the UK, Ireland and Portugal early next year. 

To an untrained eye the Nissan Leaf looks like your average five-seat family hatchback, although the lack of an exhaust pipe protruding from the rear end offers observant passers-by a clue as to this car's green credentials. In the cabin the clean lines and space age white interior hints at a new era in motoring. Aesthetics aside, there is one crucial difference between the Leaf the majority of other cars on the road: a plug socket under the bonnet replaces the need to ever fill up at the pumps. The Leaf's lithium-ion batteries generate a power output of 90kW while a gentle whirring sound from the electric motor replaces the familiar grunt of a petrol or diesel engine.

But the underlying problem Nissan rival manufacturers have to overcome is that although EVs sound all well and good, they are stigmatised by preconceptions of being a bit naff, to be perfectly blunt. Sluggish acceleration and a disappointing top speed accompanies that nagging fear that the battery will suddenly run dry, leaving you stranded on a motorway hard shoulder. Loudmouth motoring pundit Jeremy Clarkson once described electric cars as "a bit like cod liver oil - very good for you but you would rather have a plate of steak and chips".

Nissan, Japan's third-largest automaker, says these are outdated misconceptions that couldn't be further from the truth; the Leaf boasts a 160km range off a single eight-hour charge (a fast charge takes less than 30 minutes and replenishes the battery to 80 percent of its capacity), a top speed of 144 km/h and it's pretty zippy when you pull away at the traffic lights thanks to impressive torque. "It's our job to change the preconceptions," says Nissan SVP Andy Palmer, the man charged with the company's global EV development programme. "I can guarantee that if people drive the Leaf many of those preconceptions will disappear - the car is capable of over 90 mph so you can definitely lose your licence." Performance and cornering is sharp, he explains. "In terms of being fun to drive, it's extraordinary - the handling is amazing." The Leaf's nimbleness can partly be attributed to its low centre of gravity and lightness. Indeed, the EVs today are busting myths about performance and winning the praise of the car experts such as seasoned motoring journalist Quentin Wilson who recently described some of the more sporty EV's rolling off production lines today as "blindingly good".

Apart from performance, the Leaf's pièce de résistance has to be its running costs. The carmaker expects it to cost between €1.05 and €1.59 per 100km depending on where in Europe the Leaf is charged. Nissan also says its EV will be on average €615 cheaper annually than a traditional car. If you live in the UK then the car is exempt from road tax and the congestion charge in the capital, London. Despite running costs look particularly attractive compared to prices at the pumps, critics point to the fact that you have to remember to plug the car into the mains for eight hours when the battery needs charging. Palmer, however, dismisses this as an inconvenience. "I get frustrated when I have to stop off on my journey to go to a gasoline station, pull up, get mey hands dirty and smelly because I'm using a diesel engine, stand out in the cold in the middle of winter and fill my car up for five minutes; that's an inconvenience." Unsurprisingly, he paints a rosy picture when living with the Leaf: "You never have to go to a fuel station but can simply plug your car into the mains, enjoy your dinner and go to bed. You then wake up in the morning already warmed up because you preset the heater and it's ready go."

On the face of it, the 100-mile range might seem a tad puny, ruling out a long motorway journey without having to pull off and hunt for a charging point. However, Nissan says UK motorists average just 30 miles a day. "One charge will last for three days so charging at home is pretty okay for the majority," Palmer states, although he concedes that the driver needs to accept it change of mentality is required whilst he or she waits 15 or 20 minutes for the battery to be 80 percent replenished.

Making the switch to alternative fuel and electric cars

Making the switch to EVs in the first place requires a radical shift in mindset on the consumer's part. Petrol-heads are unlikely to give their gas-guzzlers the elbow, even if they do drink fuel like a 747 jumbo jet, but for those motorists vexed by volatile petrol and diesel prices, as well as the pollutants these fossil fuels kick out, then an EV could be the logical choice. Nissan, clearly at pains to emphasis the car's 'greenness', has produced a viral TV advertisement in which a polar bear makes an arduous trek from the North Pole south across challenging terrain. The animal eventually arrives in suburbia and discovers a motorist alongside his Leaf before giving the startled man a tender bear hug.

But let's be honest here; any EV's eco credentials are likely to take a back seat to the miniscule running costs - electric powered vehicles cost one-tenth the price to power as their petrol cousins. So while you may well stroke your chin in a moment of contemplative self-congratulation over your planet saving auto purchase, the knowledge of never having to visit a filing station and part with a wad of cash again is the USP for EVs. These negligible running costs and the car's 'greenness' is certainly expected to appeal to the corporate market, none more so than amid these austere and carbon-conscious times as companies get to grips with climate change targets. An added bonus for business is that the Leaf is free of company car tax for five years.

Nissan's sales team guides customers through a 'decision tree' based on their driving habits to ascertain whether or not an EV is right for them. By sometime between 2015 and 2020, Palmer expects around 10 percent of Nissan's customers to be suited to the EV range. For the time being, though, the EV market is miniscule - less than 0.1 percent of the 26 million cars on UK roads are powered by electricity. However, a raft of manufacturers are looking to tip the balance of power with their new EV models set to hit car showrooms in the next 12 months or so.

Nissan CEO Carlos Ghosn confidently predicts the global EV market will account for 10 percent of all automotive sales by 2020. "When you ask customers in the Europe, the US and Japan, around eight or nine percent are already saying that their next car will be an electric one," Palmer reinforces. He admits that these figures are perhaps slightly skewed by the consumers being confused by the difference between EVs and hybrid vehicles and other pure gasoline- and diesel-powered alternatives but 10 percent won't be far wide of the mark. "I don't think 10 percent as a projection is an unrealistic number as there will be a proliferation in EVs; even in 2010 there are already a number of 'hand-raisers.'" By being the first to launch a mass-production EV Nissan believes its vehicles can account for the lion's share of the 10 percent. In the US, the world's biggest car market, analyst firm Frost & Sullivan is forecasting that just one to three percent of vehicle sales - 400,000 to 500,000 - will be electric. By 2020 this percentage will rise to five to seven percent and 10 percent by 2025 - clearly indicating an uphill task around the corner for EV manufacturers.

At the moment, Nissan's order book for the Leaf contains the so-called early adopters of new technology keen to get behind the wheel of the first serious EV. But one potential barrier to the car's widespread appeal is the less than appealing cost. The Leaf, including he battery, will set UK buyers back a cool UK£23,990, even after a UK£5000 government grant has been taken into account. The slightly prohibitive pricing, at a time when household budgets are stretched, may be a shock for some, but you could consider it a bargain compared to Mitsubishi's soon-to-launched dinky electric run-around, the iMiEV, which was a whopping UK£38,000 before incentives. However, Mitsubishi has recently slashed the price by UK£10,000 which, when the electric car grant is included, puts it on a par with the Leaf for price.

Palmer argues that the aforementioned running costs mean his car is still value, particularly in mature markets like the UK. "Obviously, some people will reject it but in the mature markets people are going to look at the cost of running the car. I remember my dad 20 years ago calculating the miles per gallon of diesel and the distance he drove and discovering that it was cheaper than a gasoline engine car. The cost of electricity is one-tenth the cost of gasoline so your're going to be running it a hell of a lot cheaper on a day-to-day basis and avoiding the congestion charge if you live in London." The subsidies in global markets will be vital. "We really do need those government subsidies in the first instance in order to give us the mass [production] in order to help us bring down the cost of the technology," Palmer explains.

As well as purchasing costs, concerns linger over whether there will be an adequate charging infrastructure in place for when the car needs a top up. There may be an abundance of petrol filling stations, including the obligatory supermarket offering, but charging stations could end up being few and far between - more than a small inconvenience for those needing to make a long journey. Palmer says most drivers will charge at home but the infrastructure is required to reduce anxiety. He too admits to apprehension: "Yes, we do have a concern that the charging infrastructure won't be in place and that would reduce the people on the buy list." He explains that Nissan is only releasing the Leaf in countries committed to rolling out the EV infrastructure, as well offering incentives to buyers. Somewhat surprisingly, it's Ireland and Portugal rather than the US or Japan, who he says are currently the most "aggressive" in striving to create that infrastructure. "They will make sure there is really a robust grid in place by the time we launch the car."

Lasting legacy

Initially, global production will come from Nissan's Oppama plant in Japan but from 2013 the car will be built in Sunderland, in the North-East of England, safeguarding thousands of jobs in the aftermath of the toughest economic period for decades. Nissan also has another three EVs in development that could follow hot on the wheels of the Leaf. If EV's capture the public's imagination, then the prospects for the Leaf and Nissan's subsequent EVs looks promising. For Palmer, the emergence of EV is just another step on the technology process ladder. "The automotive industry has made dramatic changes over the years; they tend to be on an evolutionary basis, little steps of improvement, but when you look back over time, the change is dramatic. I think EV is one of those periods in time where you make a dramatic jump forward in the technology that you might call a new dawn." And although prising motorists, especially in the US, away from their love affair with petroleum vehicles won't be achieved overnight, Palmer sums up the EV benefits neatly: "For me, its about the driving being fun, you're saving money and knowing that you're doing something for the plant. I would say that's interesting for consumers."

Corporate customer

Ahead of the Leaf's launch Nissan has got the support of industry captains.

"The way we all get about accounts for about 25 percent of the world's carbon emission. The electrification of vehicles, coupled with decarbonising energy supply, has a critical part to play and the Nissan Leaf is helping to drive this agenda forward" Dax Lovegrove, Head of Business and Industry at WWF.

"The adoption of electric vehicles will be crucial to help us reduce carbon emissions from transport and reach our climate change targets" Colin Marriott, General Fleet Manager at British Gas Centrica.

"The Nissan Leaf gives me everything I want in a car and doesn't have the one thing I don't want - an exhaust pipe" Charlie Brown, Corporate Environment Manager UK & IE, IKEA.

The Leaf boats an IT system that once connected to a global data centre can provide support, information and entertainment for drivers 24 hours a day. The dash-mounted monitor displays the Leaf's remaining power or 'reachable area' as well as showing nearby charging stations. Owners are able to use there mobile phones to set charging functions and turn on air conditioning prior to journeys, even when the vehicle is powered down. An on-board remote-controlled timer can also be pre-programmed to recharge batteries. It also comes with sat-nav and a parking camera.

Nissan Leaf: the pros and cons

+ Running costs are one-tenth the price of petrol-powered vehicles

+ Makes filling station forecourts a thing of the past

+ No greenhouse gases

+ Exempt from vehicle excise duty in the UK, company car tax for five years and London's congestion charge

- Needs to be plugged into the mains and charged for up to eight hours

- 100-mile range won't suit long distance commuters

- Charging station infrastructure could be lacking

- Not cheap to buy, even after incentives

What the analysts say about EVs

Respected analyst firm Frost & Sullivan believes EVs are set to shake-up the mainstream car market in the wake of rising concerns over greenhouse gases and depleting fossil fuels. In its 2010 report, 360 Degree Perspective of the Global Electric Vehicle Market, Frost & Sullivan lays out its vision for the EV landscape and how the market and how it will be shaped over the coming years. They say advances in battery technology have been an underlying factor in mass-market production of EVs, creating a revolutionary business case for the car industry. "With the advent of lithium-ion battery technology and innovative financial models, the automotive industry is all set to witness a revolutionary business case," the author of the report states.

Frost & Sullivan also highlight how car manufacturers are working on business models that will make available the car and energy under one roof, opening up a plethora of opportunities for utilities, suppliers and finance businesses. They also point to a rising trend towards urbanisation, along with the emergence of mega and smart cities, which will be a boost for EV sales. The report goes on to say that by 2020 the emergence of mega cities in developing economies will drive personal mobility to a new level, adding to the demand for EVs. City layout will play a part, too. "Most offices are expected to move to the first-belt suburbs and city centres will encompass the shopping areas (small-scale deliveries) and living areas for 'double/single income, no kids' households," says the report's author. "In mega cities, offices and homes are likely to be adjacent to each other, creating a favourable environment for EV deployment." It's not all positive, though, with Frost & Sullivan describing the prices of the initial wave of EVs as being "prohibitive".  To counter this cost challenge, the author notes, federal and local governments have passed a series of legislation, benefits and rebates to help manufacturers off their vehicles at affordable prices.

The outside lane: rival EVs

City run-around

Mitsubishi's diminutive i-MiEV is clearly aimed at those looking for a nifty urban hatchback for popping to the shops and squeezing into awkward parking spaces. Due to be released in January 2011, the i-MiEV can hit a top speed of 130km/h and like the Nissan Leaf, can be fast charged from zero to 80 percent capacity in 30 minutes. With the UK government grant, this EV will set you back a shade under UK£24,000 and includes a five-year, 100,000km warranty for the battery and EV components. Best of all, this car will cost just UK£10-worth of electricity to fuel it to run 1600km.

Family workhorse

German thoroughbred Mercedes has just unveiled its electric car - the A-Class E-CELL - with a 200km range on a single charge and a top speed of 151km/h. The five-seat EV hatchback is based on the regular A-Class with the electric motor mounted where the petrol or diesel engine usually sits. Mercedes claims the car will hit 60km/h from a standing in start in 5.5 seconds thanks to the low-end acceleration. As electric cars go, this is sure to have traditionally German build quality combined with reliability. It's good-looking too. At this stage, however, the makers are staying tight-lipped about the price.

Sporty number

Who said electric power means sacrificing driving performance? California-based Tesla's Roadster 2.5 is certainly delivers all the thrills and spills of a traditional petrol-powered sports car, minus the exhaust pipe. Tesla claims the Roadster can reach a mighty impressive 339km range off a single charge and can hit 100km/h in less than four seconds. Tesla's Christiano Carlutti says it's a car that be used on a daily basis but boasts performance that often surprises test-drivers. "Once they drive they drive the car they find the experience overwhelming. They get out of the car and say 'I didn't think this was possible.'" It also comes with a sporty price tag: UK£87,945.

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