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What Do Nissan Dealers Pay To Prepare For Leaf Electric Cars?

 
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John Duncan takes delivery of one of the first 2011 Nissan LEAF EVs, near Portland OR, 12/15/2010

John Duncan takes delivery of one of the first 2011 Nissan LEAF EVs, near Portland OR, 12/15/2010

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The 2011 Nissan Leaf, at first glance, looks a whole lot simpler to service than conventional gasoline cars; there's no flammable liquid in the tank, no motor oil, no complicated multi-speed transmission either.

That said, some dealers are probably feeling a little daunted by the idea of taking a dealership that's configured to sell and service gasoline cars and trucks, and upgrading it to sell and service all-electric vehicles, like the Leaf.

Wouldn't there be some expensive equipment required in the transition? A lot more training required?

Turns out it's really not much in the cost of a dealership operation; the total cost of the dealership upgrades Nissan is requesting doesn't add up to much more than the price of a single Leaf.


According to Mark Perry, Nissan's director of product planning and strategy, and the hands-on executive who's seen the Leaf project through in the U.S., dealerships become certified to sell and service the Leaf if they comply on three main points:

  • Publicly available charging stations. Stores have to commit two of them to be available to the public and out in the parking area; two more are required for back-of-shop.
  • Training. They had to have two of their technicians trained to deal with the battery packs, high voltage, and EV repair issues.
  • Equipment. The Leaf's battery packs weigh 600 pounds. So special lifts are required to take the battery down and roll it around. Special high-voltage gloves and flash suits are required for some tasks.

Just like home charger installation, the total cost to the dealership could vary quite a bit, estimated Perry, though he said we're certainly not talking hundreds of thousands. The total cost for most dealerships would to equip themselves for Leaf will fall in the vicinity of $25,000 to $75,000, he estimated. Or in the same order of magnitude as the cost of one new 2011 Leaf (base price $32,780).

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2011 Nissan Leaf

2011 Nissan Leaf

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So, tools and equipment, technician training, sales training, public charging stations, those are the things we're asking our dealerships across the country to be able to do," outlined Perry. "It's a bit of an investment, but it's an investment in the future."

Nissan is currently launching the Leaf in seven states (with first deliveries taking place this week), but the company hopes to have techs for nearly all of its dealerships trained and ready well before the Leaf is available in all 50 states about a year from now.

Perry says that so far, nearly every store—about 97 percent of dealerships—has agreed to take on the added training and upgrades to sell Leaf. "You always have one or two that maybe don't, and that's okay, but we're very excited that the dealers see this is the future, and we're just taking the first step."





 
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Comments (7)
  1. Let's look at this from a dealership point of view. I'm going to guess that a dealer will make around $1,500 on the sale of each Leaf. From that he is going to have to pay the sales person say $500, sales manager another $200 and then there is a bunch of other administrative expenses the come from running a dealership.
    So after all is said and done a dealer is going to have to sell a lot of Leafs to break even and breaking even really isn't the name of the game. If you look at return on investment, there are better things for a dealer to put their money into that special tools, training and equipment to sell a few Leafs.
     
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  2. @Todd: By 2013, Nissan will have the capacity to build 150,000 Leafs per year, plus another 50,000 electric-vehicle battery packs, in its Tennessee plant. So it is clearly planning for more than just "a few Leafs" per dealer.
     
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  3. @Todd: Would you have made the same argument when the automatic transmission or air conditioning were introduced?
     
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  4. @Larry,
    Have you considered what the power load is when it is a hot day and everyone is running their home AC? The charge rate and draw for charging an EV is MUCH less than the draw of my home AC. Further as you somewhat acknowledge, charging at night will simply balance the load and use power that would otherwise not be taken at all. There is absolutely NO risk of "overloading the circuits" at my home, since the charge point is on its own breaker and the actual draw rate is pretty low...again compared to what my AC draws. Further many of us going EV already have our homes FULLY powered with Solar Panels. I have enough solar power capacity to power my home and to charge two EVs based on balancing what I "give back to the grid" in the day versus what I will draw between midnight and 7 am with time-based EV charging. The BIG power drains "on the grid" come in the mid and late afternoon, at least in California, when people power up their AC systems, the ovens, and their big screen TVs; the houses here, and the grid, survive those loads, and the addition of the projected number of electric cars over the next 3-8 years will not be any actual burden to that power system. Maybe in 20 years with EVs hitting 30-60% of the vehicle market, THEN we will have to have more windpower systems and other forms of "green energy" sources, but for the near term....the grid will be quite adequate.
     
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  5. Larry,
    The answer is yes, people have taken the time to consider the impact on the grid and decided it will be fine without major new infrastructure, as long as charging is done off peak. But thanks for asking.
    John C. Briggs
     
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  6. as a followup to my earlier comment.
    John: you are correct that the capacity is there to make it worth while in the long run. For some smaller dealerships it will take quite a while for the purchase of those special tools to make economic sense.
    Bob, you too are correct, I only wish all the automatics were the same.
    Every time the factory comes out with a new transmission, engine, fuel injections system or wiz bang feature we (yes I'm a dealer) receive a shipment of special tools. I have $9,000 worth or special tools that have never been opened for a vehicle that was produced for one year and then cancelled. Every time I walk past that box I cringe.
     
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  7. I've seen studies that have indicated that our present power grid could support up to 20 million EVs without any upgrades or additional power plants. So you are bringing up a non-issue for the next decade.
     
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