CARLOS TAVARES, NISSAN MOTOR CO., LTD SPEAKING ON SUSTAINABLE MOBILITY

Dear colleague

In his address to the first Automotive News Green Car Conference/Exposition (Detroit, 13 November), keynote speaker Carlos Tavares, executive vice president, Nissan Motor Co., Ltd reiterated  the company's commitment to zero-emission leadership and highlighted some of the challenges toward sustainable mobility.  Please find below a full transcript of that speech. 

"Today we have discussed how Green Cars can be at the core of a business plan, considering factors such as:

• Social trends,
• Regulations,
• Climate change, and
• Technology

We know the issues, but how do we move forward?

All indicators suggest that we are on the front edge of the next automotive revolution.  The word “revolution” points to changes that are so sweeping, they engulf us completely and cannot be reversed.

The first revolution was probably the shift from horses to horsepower – the mass production of automobiles in the early 20th century.  The notion of transportation changed forever.
         
In the 1980s, we saw a revolution stemming from Japanese Kaizen.  This leap forward in quality and manufacturing efficiency raised consumer expectations and standards throughout the industrialised world.

That brings me to the most recent revolution – the unrelenting globalisation of our industry.  I am sure some of us remember when countries like China and India were not even on the automotive map, having only a few motor vehicles per 1000 people.  Those days are clearly behind us!

So, what lies ahead?
         
Well, governments are pouring funds into green solutions based on a vision.  By 2020, the world’s cities will contain one billion more people than today, according to the Economist Intelligence Unit.  There is a growing fear of crisis: congestion, scarce resources, pollution and inequalities.

Clearly, societies around the world are seeking a new paradigm, one that elevates quality of life with more convenience, affordability and appeal without jeopardising future generations.

Some call this a green revolution.  However, at NISSAN we like to take it one step further.  Looking upon Planet Earth, you see its characteristic colour is in fact blue, representing the vast oceans that help sustain us.

Accordingly, Blue Citizenship is NISSAN’s commitment to the planet and its people.  We go beyond green:

• by defining the future of mobility,
• by thinking and behaving holistically in the communities in which we do business, and
• by ensuring that actions creating shareholder value also create a better world

In short, if we truly view the automobile as part of the global ecosystem, then Blue Citizenship should be our goal rather than Green Cars.
         
However, this vision cannot be realised without customers!  Do they know exactly what they are looking for?  We think not necessarily.

Let’s look back to the 1970s when microwave ovens took off.  Were consumers actually seeking a new way to cook food?  After all, microwaves do not even brown or bake, not to mention fry an egg!

Yet, in 30 short years, we went from nothing to over 90% households in America owning one.  Cars, of course, offer emotional value such as the power of design and personal expression.  The Nissan brand delivers driving pleasure, emotive design and friendly innovation.

Nonetheless, we may be able to learn a few things from the humble microwave.  It is:

• Easy to use,
• Easy to maintain,
• Unobtrusive, and
• Affordable

In a way, one might ask: why NOT own one?

• Just to stimulate our minds, let’s evaluate today’s cars the same way :
• Easy to use : except when moving in reverse, parking in downtown, or sitting in a middle seat,
• Easy to maintain : except for fill ups, oil changes and car washes,
• Unobtrusive : except for noise, pollution and traffic,
• Affordable: as long as financing is available and gas prices are low.

Ladies and gentlemen, we must admit that today’s mobility, as great as it is, still has a long way to go.

As gas prices climbed, the hybrid vehicle was embraced as a way to improve fuel economy.  However, as in a game of chess, this seems to be an opening move rather than the end game.

One of NISSAN’s corporate commitments for the next decade is Zero Emission Leadership.  Why?  Well, it’s not only about improving fuel economy and reducing CO2 emissions.  In fact, we believe in the power of zero emissions to transform mobility as we know it!  In the new concept of mobility, Green will merely become an attribute of Blue Citizenship.

IBM’s Consulting group did an interesting study of trends in their recent “Automotive 2020” report.  They flagged four forces that will grow significantly in our industry between 2008 and 2020:

• Personalisation of mobility,
• Corporate social responsibility,
• Sustainability concerns, and
• Technology progress

As consumer sophistication grows, their needs will probably not be satisfied by one single vehicle.  For example, an EV might be well suited to daily commuting needs, but not to weekend trips with the family.  What about ready access to a sports car when you crave speed?

Accordingly, IBM rightly expects a sea-change in ownership, where consumers would demand access to a collective garage of vehicles.  This Garage Concept could revolutionise our industry, and also become a lever for Green Cars.

We designed Pivo 2 to explore how an EV might enable these new forms of mobility.  As you can see, conventional vehicle design rules quickly become irrelevant.  Electric in-wheel motors combined with shift-by-wire technology eliminate the need for a transmission and drive shaft.  Use of a compact battery pack frees up space traditionally consumed by the engine.

Add in steer-by-wire technology, and a driver can reverse without turning around… or move sideways into a parking space.  The list goes on.

Pivo 2 represents a nimbler, cleaner and elegant form of mobility.  Its lower complexity increases affordability and supports a Garage Concept.  In essence, we have discovered a new form of sustainable mobility.

Of course, revolutions do not happen overnight !  So we had to chart a course towards the goal of zero emissions.

Since no one can fully anticipate customer preferences, we decided to invest in a portfolio of transitional technologies, including:
Our own hybrid for our Infiniti luxury brand,

• Clean diesel, and of course
• Improvements to the Internal Combustion Engine, without forgetting the highly efficient Continuously Variable Transmission.

The EV will be our main foray into zero-emission mobility.  The first pure EV will arrive in select markets in 2010, followed by a mass-market rollout globally in 2012.  While our EVs will continue to evolve, the first generation will be a real car – not just for the green –conscious consumer, but with broad-based appeal!

The vehicle itself is an ambitious goal, and we realised that we could not go alone.  Why?  Because sustainable mobility goes far beyond the vehicle.

• Governments will be a key ally in developing the zero emissions architecture.  So far, we have announced partnerships with the State of Tennessee, the City of Yokohama in Japan and countries such as Portugal, Israel and Denmark. Others will be announced very soon!
• Entrepreneurs are also instrumental.  Project Better Place has emerged as a strategic partner for building quick-charge networks and an EV culture.  Electricity companies are also expressing their willingness to join this effort.  In fact, we see new businesses emerging from battery leasing opportunities.  Just as entrepreneurial groups built our industry’s retail presence, new retail operators will deliver power supply solutions to EV consumers.
• Manufacturing is taking on a new dimension with the need to manage the battery value chain.  We created a joint venture with NEC to have our own battery production.  This allows us arms-length involvement with quality, cost, performance and production capacity.  On the other hand, we will pursue battery recycling in an effort to control the full lifecycle.
• Corporate collaboration is playing a newer, larger role, since the investments are significant.  NISSAN is leveraging its Alliance with Renault to develop common batteries, motors and inverter systems.  Yet, as we strive to be a sincere eco-innovator, our technologies will be available to the industry.

The complementary piece in the zero-emission solution is the renewable energy supply.  The automotive industry is working to promote sustainable mobility for the future.

Yet can we make zero-emissions a reality without a renewable energy commitment from electricity providers?  Probably not.. Denmark, for example, has put a laser focus on its electricity footprint. The International Energy Agency tells the story: 9% generation from renewables a decade ago, and today nearly 30% comes from solar, wind and biomass.  This is a promising development!

Therefore, we should expect a major improvement in renewable energy supply in other markets.  If the automotive industry is investing to overcome its challenges, so can the electricity industry.  Only then can we comfortably say that a sustainable mobility solution will be fully delivered to the customer.

Taking a few steps back, we have to ask whether consumers will buy into this vision?

There is a perception of a range “problem” with EVs.  Our first generation battery will deliver 100 miles per charge.  Through today’s lens, this looks like a sacrifice of convenience, especially in expansive countries like America.  Through tomorrow’s lens, it could look more convenient:

• The vehicle “fills up” while you sleep; no need to wait in line at gas stations,
• It meets your daily needs, while the collective “garage” has exciting alternatives for special uses like weekend trips,
• Its cost of ownership is significantly lower, and
• It enables totally different cabin layouts and functionalities.

Last but not least, advanced technology may help us overcome challenges with charging.  For example, do we know for sure that the vehicle cannot be charged while driving?  Think about it …

We think EV demand is now inevitable.  In China and India alone, 100,000 people a day are migrating to cities.  As population densities grow, commuter activity and short trip activity grow.

Even here in the US, we have seen a small, but marked growth of mobility sharing.  Susan Shaheen at the University of California tells us that car sharing increased 10-fold over the past decade to nearly 400,000 members globally.  Some call it an extension of Facebook networking to the realm of mobility. Either way, we expect self-charging, networked EVs to support and even drive this new trend!

In today’s terms, we might use the dreaded rental car fill-up as an example.  It consumes precious time, requires a receipt and validation by an agent.  Would it not be more appealing to just drop off and plug in the car?

What I am trying to say is that zero emissions does not need to mean everything to everyone on every occasion.  Yet an EV could well become the mainstream just as microwave ovens found their way into our kitchens!  Range may not be the stumbling block that many people claim it to be.

Tonight, we have taken a journey together… One into future forms of mobility: intelligent vehicles, the garage concept, renewable energy, new levels of convenience and affordability.  Of course, zero emissions is a key enabler.
         
We are all in the starting blocks of this race – initially for Green Cars, and longer-term for Blue Citizenship.   Our grandchildren may never believe we owned cars, not to mention that they had tailpipes! 

For this reason, Nissan has introduced a new tagline: SHIFT_The Way You Move.  It reflects our conviction that the new wave of mobility is rapidly approaching.

Let’s not be satisfied with the status quo, and instead embrace a different future together."

ends…

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