Race to electric: Nissan's U.S. strategy depends on southeast growth
Nissan North America is prepared to bolster its investment in battery-powered technologies in Tennessee, where it's headquarted, and throughout the southeastern U.S. This decision comes amidst substantial profit growth and intensified global competition for electric vehicles with artificial-intelligence software.
In an interview with The Tennessean, part of the Paste BN Network, senior vice president of Nissan Motor Co. and chairperson of Nissan Americas, Jérémie Papin, said that the company intends to significantly ramp up production to expedite the launch of new electrified models at all price points.
Nissan's US. market surged 33.1% in the first quarter after strong growth last year, and the company posted an overall 98% year-over-year spike in operating profits. Meanwhile, the company’s position in China is threatened by “severe competition” in new vehicle technology there, and a 24.3% revenue cut in 2022 that grew to 37% in the first quarter, according to company officials.
“The growth in the U.S.A. at the moment is something that benefits significantly the global business of Nissan,” Papin told The Tennessean recently. “So, the importance of the U.S. business, its positioning within the company, has never been as strong as it is today.
“China and the U.S. have always been very strong footholds for the company. As one gets weaker, the other gets a lot more attention to be stronger. Technology research-and-development is the backbone of Nissan. We have over 1,000 engineers in Farmington Hills right now and thousands more in Japan.”
In July, Nissan announced its vehicles will be compatible with Tesla chargers.
A race for the best technology
Automotive production was new to Tennessee when Nissan began building cars here in 1983. Now, Nissan's production facilities in Smyrna and Decherd, Tennessee, and Canton, Mississippi, are part of a major national hub with General Motors, Volkswagen and Ford. The historic brands are investing billions in upgrades to pave the way for what Papin said will be an all-EV landscape in 12 years.
“It’s always good business to produce where you sell, and it’s something that’s very much supported by the government and also by the state of Tennessee, who have been extremely good partners to us,” Papin said. “Obviously many of the competitors are also producing EVs here. Tennessee will be a very meaningful hub for EV manufacturing expertise in the years to come.”
Nissan moved its U.S. headquarters from the Los Angeles area to Williamson County 17 years ago. Papin said the company's relationship with Tennessee remains strong because of consistent policies, in contrast to California where the Air Resources Board has imposed increasingly strict regulations on carmakers.
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"Stability of government regulations and rules is very important," he said. "That's the key to us. At the end of the day, I don't care what the rule is, I need to make sure the rule is going to stay in place. If not, that's when we start to waste tens of millions or hundreds of millions of dollars, which is not good for me or the state."
U.S. News & Report has named Nissan’s affordable Leaf, which the company began building a decade ago in Tennessee, as the third-best electric vehicle in America. Nissan Rogue and Altima landed in the top 25 best-selling car models in 2022, according to Car and Driver magazine. Sentra sales fell 40% while Altima purchases rose 35%.
Consumer issues with the relatively high cost of EVs, limited battery range and availability of fast-charging battery capabilities could be resolved sooner than later, he said. Nissan is developing in-house technology using solid-state batteries that promise twice the range and half the charging time − key needs for rural residents, along with a growing charging network.
General Motors invested $2 billion into upgrades at its Spring Hill, Tennessee, plant, Volkswagen renovated its Chattanooga, Tennessee, facilities for EV production and Ford is building its $5.6 billion Blue Oval City massive auto production complex outside Memphis.
In addition to the all-electric SUV Ariya and an electrified Infiniti, 19 new battery-electric and hybrid Nissan models are promised by 2030. Two of those will be made at Nissan’s recently expanded Canton facilities in 2025.
The plants in Smyrna and Decherd are slated to help accelerate the EV push.
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In development: a new driving experience
The transportation revolution underway goes beyond reducing reliance on fossil fuels. Self-driving technology will transform the driving experience, and producers like Nissan are focusing more on developing in-car entertainment.
Automakers are actively testing the technologies and sharing performance data with regulators.
"On the latest cars, you have copilot assist that can change lanes. The car is doing the things that should be done and would not allow you to do things you shouldn’t without warning you," Papin said. "The goal is to eliminate fatalities.”
Sandy Mazza can be reached via email at smazza@tennessean.com, by calling 615-726-5962, or on Twitter @SandyMazza.