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Case Title:

Renault-Nissan's New Electric Car Can it Keep its Claims?

Publication Year : 2010

Authors: B Gopal, M Bhattacharya and A Syed

Industry: Automobiles

Region:US

Case Code: IPD0129IRC

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
The skyrocketing crude oil prices and perpetual environmental implications, made auto-makers, as well as consumers look at alternatives to the conventional gasoline engine. Consumer reaction to high oil prices has led to a boost in hybrid car sales in recent years. Giants like, General Motors and Toyota proposed advanced hybrid and plug-in hybrid technologies as alternatives, as the systems leverage both gas and electric power. At the same time Renault-Nissan has chosen to go in a completely different direction. Also, the company has teamed up with the Israeli government to launch its all-electric car in 2010. The company committed to become a leader in developing zero emission vehicles. Despite the limitations of all-electric vehicles - and the failure of such cars in the 1990s - the alliance is confident about its commitment. The case discusses whether this revolutionary concept will be successful and become a major milestone in the annals of the automobile industry.

Pedagogical Objectives:

  • The evolution of electric cars and their initial debacle.
  • The global awareness arising out of rising oil prices and consumer preferences towards non-gas powered vehicles.
  • To Renault-Nissan's ambitious plan of an all-electric car.
  • The challenges and future potential of electric cars.

Keywords :  Renault-Nissan, Electric vehicles (EVs), US auto industry, Consumer preference, CARB (California Air Resources Board) and other anti-pollution regulations, Hybrid cars, ZEV (zero-emission-vehicle) mandate, Lithium-ion battery, Project Better Place, Global awareness to climate change, Increasing oil prices, GM (General Motors) EV-1, Toyota Prius, Renault-Nissan's Israeli Venture, Market potential of electric vehicles

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