Nissan Motor Co. said the financial support it has received from governments worldwide will ensure the profitability of its electric vehicle program.
"The speed (at) which you get returns depends upon mass production. The second thing that it relies upon is government incentives," Andy Palmer, Nissan's senior vice president of product planning, said in an interview Monday. "That helps our cost of entry, helps our cash flow and will help the first- and the second-generation vehicles to exist."
Development costs for electric cars "significantly" exceed the $300 million to $500 million Nissan normally spends on a new model because of the expense of the batteries, Palmer said. The automaker is now preparing to produce about 350,000 electric vehicles a year globally.