One on One with Mark McDade
Mark McDade is the Director of Marketing and Electric Vehicle Project Manager for Nissan Canada. That’s a big title for a role some would say is one of the most important turning points in the way we transport ourselves. The introduction of mass-produced electric vehicles is a major stepping stone in curbing vehicle-generated greenhouse gases. With Nissan taking the lead in this arena, launching the Leaf EV, we sat down with Mr. McDade to talk about the challenges of selling an EV in Canada.
RPM: It seems as though manufacturers are spending a lot of time developing Electric Vehicles (EVs). When did Nissan commit to starting an EV program?
McDade: Well, Nissan back in the late ‘90s saw electric vehicles as the future technology. Not that we’ve abandoned other technologies such as hybrid, fuel cell and range extenders, but we see the short term finish line being battery-operated electric vehicles. So, since 1999, we made the decision to travel this route and invest our R&D into these technologies and make zero emissions a reality.
RPM: Back in the ‘90s, environmental concerns were not as mainstream as they are today. Why did Nissan start R&D at this time?
MD: We feel that to be a responsible manufacturer, a proportion of your portfolio has to be zero emission. Governments are going to be dictating more and more restrictions for emissions, and public opinion will power this. While this all sounds altruistic, we also think it just makes good business sense.
RPM: So what makes battery powered EVs more attractive to Nissan?
MD: Well, right now we see that hydrogen still requires a lot of work and there are still many challenges with hydrogen. However, even with a Fuel Cell-powered vehicle, you need a good battery. We have a good battery in the Leaf and it is capable of meeting the needs of the vast majority of Canadians, so it just makes more sense at this point in time.
RPM: So what’s involved in bringing a mass-produced electric vehicle to Canada?
MD: Well, we are the car guys. We have the car and we have the technology. But this is a transformational moment in the car industry and we can’t do it alone. We need help in terms of infrastructure, whether it be charging stations, permitting processes, financial incentives, you name it. This is a collaborative effort between like-minded governments and utilities that are concerned about the environment and realize that we need an alternative. That’s the real challenge.
RPM: With your interest in Vancouver and British Columbia and your initiative to launch the Leaf here before the rest of Canada, would you say Vancouver is leading the way in developing a suitable infrastructure?
MD: Kudos to Vancouver and the Province of British Columbia, because they were on this thing fast. They were the first knocking on our door very quickly and were the first out of the gate. They came to us with their plan for cutting emissions and building an infrastructure, so we are working with them and they will be the first to receive vehicles to better develop the system.
RPM: So, while the infrastructure is being created, how ready are you to produce and provide emission-free vehicles to the Canadian public?
MD: From a production standpoint and a consumer standpoint, we will meet consumer demand. There are no material or capacity issues at all. Right now we have one plant that handles both battery and vehicle production and by 2012 we plan to have three additional plants in the US, UK and Portugal producing both batteries and electric vehicles. We have commitments, funding in place and government support, so we are going forward, full speed ahead.
RPM: How will EVs change the way Nissan does business? A lot has been said about how low-maintenance EVs will lower profits for dealership service departments?
MD: From a manufacturer’s standpoint, it’s really not a worry in terms of our revenue or profit stream. Really, the paradigm shift is at the dealership level. With EVs, not a lot can go wrong, there are no fluids, no gas, no transmission, and very few moving parts. There will still need to be regular maintenance of tires, lights, bodywork, brakes and in an extreme case, the replacement of a battery, but primarily they won’t need as much maintenance. Forecasters are predicting that on a global scale, only ten percent of vehicle sales will be electric by 2020, so 90 percent will still be gas-powered vehicles.
RPM: Would you say that ten-percent figure would also relate to Canadian sales as well?
MD: Well it depends who you talk too. I would say that is on the low side for Canada. There are some groups out there saying unreal numbers of up to 60 percent, but whatever the numbers are, we will match demand. We have the juice, we have the capacity and the wherewithal to build more plants if necessary.
RPM: Obviously the early adopters will be lining up for the new technology, but do you see a challenge to shift others who don’t grasp the concept, to build the ratio of clean vehicles being sold?
MD: Yeah, we see the early adopter leading the charge. Will it fall off? Well, that’s up to us to work with our partners to help educate the public about what an EV is, and to respect an EV. I firmly believe that we are on the cusp of something special. The car meets the demands of 90 percent of metro-Vancouverites’ needs, and the cost of ownership alone will help change thinking.
RPM: On that point, EVs have already been available to the public from companies like Tesla and Fisker, but the customer has to pay a premium. Can the Leaf be cost-effective to the average consumer?
MD: Our goal is that we don’t want the consumer to pay for the price of technology. You shouldn’t have to pay extra to be clean. But, we feel from a price perspective that it will be in the range of a small car market. Now that range is quite large, from $13,000 to $35,000. We will be somewhere in that range, we’re just not quite sure where yet. We should have a number in about a year’s time.
RPM: This is the first EV offering from Nissan. Are these EV ambitions going to result in additional forms of electric vehicles?
MD: We are looking at a light commercial small van application, and we are looking at a luxury division. The Leaf is the first branch on a tree so to speak.
RPM: Finally, are there any stereotypes that you feel need to be set straight?
MD: Cold weather! Does cold weather impact the range of a car? Absolutely, but that is where the infrastructure comes into place and where education comes into place. For colder cities, maybe there is a need for more publicly-visible charging stations. EVs can work in cold environments, it will just take a little more work, and the technology will catch up as well. Also, it should be said that 99 percent of the Leaf is built from recycled material, and it is built in an eco-friendly solar-powered facility. So it’s the real deal.
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