Nissan Won't Build Its Own Electric Car Batteries Anymore (cnet.com)

An anonymous reader shares a report: Balancing every single task by oneself, instead of getting some help, can break a person down in record time. That's likely why Nissan has decided to step away from manufacturing batteries for its electric vehicles. Nissan announced on Tuesday that it would sell its battery-manufacturing subsidiary, Automotive Energy Supply Corporation (AESC), to the Chinese investment firm GSR Capital. "This is a win-win for AESC and Nissan. It enables AESC to utilize GSR's wide networks and proactive investment to expand its customer base and further increase its competitiveness," said Hiroto Saikawa, president and CEO of Nissan, in a statement. "In turn, this will further enhance Nissan's EV competitiveness. AESC will remain a very important partner for Nissan as we deepen our focus on designing and producing market-leading electric vehicles."

Comments

this is why Tesla is going to be HUGE quickly

[WindBourne]

Seriously, they control their own future and have the ability to drop costs relative to others.
OTOH, companies like Nissan, GM, Ford, etc that do NOT build their own plants will not be able to compete against Germans (who are late to the game, but getting there), the Chinese (who will learn how to properly make cars, but at this time, only a fool would buy), and Tesla.

Re:this is why Tesla is going to be HUGE quickly

[Anonymous Coward]

To some degree, it is also a HUGE risk that Chinese government sponsored industry will undercut prices and take the entire market like they have with steel, solar panels, etc...

The increased trade between Japan and China is a direct result of the abandonment of the TPP and foreshadows the unabated growth of China as America decides to withdraw from trade deals and pick at bellybutton lint instead of competing and controlling world markets.

Re:this is why Tesla is going to be HUGE quickly

[Anonymous Coward]

Remember the days when monocultures and monopolies were frowned on around here. Yeah, those were good times. Now we have people who can't scream "TESLA!!!!!1111!!!!" loud enough.

Re:this is why Tesla is going to be HUGE quickly

[Anonymous Coward]

These type of batteries are going to be a low margin commodity.

In the meantime, Tesla is burning through cash for its operations. It just issued bonds that being rated in the low Bs.

It has two more years to get market share and after that, the big boys are coming in at full strength.

Tesla's future is hardly a guaranteed success. But, Tesla's stock doesn't trade on fundamentals: just pie-in-the-sky dreams. Dreams created by Elon's publicist. It's amazing how techies who can be so skeptical and rational throw it all away when it comes to the cult of Musk.

It's exactly how religious people think - hence the use of the word cult.

Re:this is why Tesla is going to be HUGE quickly

[Gilgaron]

Although if they build the 'best' battery, they can still say in the small margin battery business even if they stop making cars. It's like a Husqvarna mower with a Honda engine, except it'll be "Ford e-Peen, Powered by Tesla!" on the advert.

Re:this is why Tesla is going to be HUGE quickly

[Anonymous Coward]

Because Tesla understands that battery costs are the key to competitive electric cars. The only way to control that is to build them, not outsource manufacturing to a third party hungry for extra margins. Auto companies still manufacture their own engines for this very reason.

Re:this is why Tesla is going to be HUGE quickly

[Rei]

There's no risk with this purchase. Nissan's battery "technology" in the Leaf is terrible. Among the worst in the industry, if not the worst in the industry. It's just passively cooled prismatic cells wired together in a giant "suitcase". The average degradation on them is terrible.

Re:this is why Tesla is going to be HUGE quickly

[Rei]

Annual US car production is under 4 million units. Tesla Model 3 production is scheduled to hit 500k next year. That's what people are investing in Tesla for. Because this is a big, big thing.

And that's just one year. So far Tesla has gotten a nearly 2 year waiting list without any advertising at all, without anyone being able to test drive it (or even know all the specs for most of that time), and with Tesla trying to anti-sell it to try to drive buyers to S and X instead (which they can actually get cash from today, rather than two years in the future). With advertising Tesla expects to raise the 500k to 700k (this will involve moving S and X motor production to gigafactory to free up space at Fremont). A couple years from now they'll also be introducing the Model Y crossover (crossovers being more popular than sedans). They also have a major electric semi truck project in progress, and are developing the Supercharger V3 to support it. After the Y and semi they're discussed a new Roadster, a pickup, and a lower-cost sedan.

Nobody is putting money into Tesla because of their current sales. They're putting money into Tesla because of how much pent-up demand there is for its vehicles - whether you happen to be part of that demand or not. Said investment money is to let them tool to convert demand into sales and thus profits. Talking about figures related to Tesla's current market share are just silly when they're in the middle of building a plant to increase the US's total car production by 28%.

Re:this is why Tesla is going to be HUGE quickly

[AmiMoJo]

Nonsense. I have owned two Leafs, the batteries are great. Very low degradation even under extreme conditions - taxi companies doing multiple rapid charges every day and a 100% charge overnight, for 200,000 miles. They actually removed the "long life mode" 80% charge option from newer models because it was pointless, the 100% charge having no real effect on the battery pack.

They are passively cooled, but that's fine for the Leaf. You only need active cooling if you want to charge at >50kW or for longer periods than a 30kWh pack needs, or if you are drawing more energy than the Leaf does even brodering it. Again, taxi firms running the cars hard, charging them hard, demonstrates this.

Adios Nissan

[Anonymous Coward]

There are pros and cons to outsourcing. But if there's one thing that's asymptotic to pure truth, it's never ever outsource your core competency.

In the case of EVs, your core competencies are Battery Design and EV Drivetrain.

Outsourcing half your core competency right as the market starts to pick up and get competitive sure seems like surefire way to be left behind.

Re:Could not Compete

[Topwiz]

The problem with the Leaf is that it looks like it was made ugly on purpose.

Re:Electric cars going the way of 3D TV and RoR

[tmshort]

My wife has a LEAF and a short enough commute to work and activities that the car works for her. I have a Volt that I primarily drive in EV mode. We both have Level 2 chargers at home and at work; but the LEAF has a 6.6kW charger, and can accept Level 3 CHAdeMo fast charging. So the double-sized LEAF battery can completely charge in the same time (or less) as the Volt. I know of a city dweller who has a Volt, and they charge it when they go grocery shopping.

So personal circumstances do matter.

The issues you bring up are certainly impediments, but an EV with with a decent battery and range extender (like the Volt or BMW i3) I think is the way things will progress. The battery needs to be bigger (at least 100 miles cold range) and the ICE needs to be able to charge the battery while running, not just maintain the charge. It also needs a highway mode that will choose EV or ICE depending on efficiency at speed. So take a Prius Prime, Volt, i3, mish-mash them together.

Re:Electric cars going the way of 3D TV and RoR

[Rei]

Also worth noting that Tesla has the highest owner satisfaction rating in the industry, with 91% saying would buy again (the next closest being Porsche at 84%)

Tesla only makes electric cars. So, read into that what you will.