Nissan Motor Co., aiming to be the top seller of electric vehicles in the U.S., is hedging its bets.
Nissan will use a $1.6 billion U.S. loan to retool a Tennessee plant so hybrids and other fuel-efficient models can be made on the same line as battery-powered cars to prevent wasted capacity. Electric vehicle assembly will be phased in "to avoid underutilizing the plant while the market is developing," Senior Vice President Andy Palmer said.
Carmakers are readying electric vehicles in response to higher oil prices, demand for more fuel-efficiency and concerns over climate change tied to carbon exhaust. Even with U.S. aid to build and buy them, the higher cost and shorter driving range of electric vehicles may hold the total market to less than the 150,000 vehicles Nissan will be able to build at the factory.