Automotive Fleet
MenuMENU
SearchSEARCH

Nissan Unsure of Demand for Hybrid Vehicles

GARDENA, CA — Nissan will be able to build up to 50,000 hybrid gasoline-electric cars a year for sale in the U.S. once production starts next year, the company said on Jan. 11, according to the Financial Times newspaper.

by Staff
January 18, 2005
2 min to read


GARDENA, CA — Nissan will be able to build up to 50,000 hybrid gasoline-electric cars a year for sale in the U.S. once production starts next year, the company said on Jan. 11, according to the Financial Times newspaper. Carlos Ghosn, chief executive, said Nissan would build its hybrid Altima sedan at a factory in the U.S., using electric components bought from Toyota. But he said he had little idea how much demand there would be for the car, and it would be loss-making. If Nissan uses its full production capacity it will be making far more hybrids than envisaged when it licensed the technology from Toyota. In 2002 the two companies said they expected sales of 100,000 over five years. The production numbers came as Ford, Toyota, and Honda all showed off new hybrid vehicles at the Detroit motor show. Manufacturers have been racing to speed development of new models powered by both batteries and gas engines since the Toyota Prius raised the profile of the technology 18 months ago. Toyota has sold far more Prius hatchbacks than it expected and was picked as last year's U.S. car of the year. Ford's Escape hybrid – which uses Toyota technology – was voted U.S. truck of the year at the Detroit motor show earlier this week. However, Ghosn said the Altima would lose money and he remained concerned about the cost of the technology. "If the value (to the customer) remains below the cost, I think the hybrid is going to be like the electric cars," he said. Both Ford and GM launched expensive electric car products a decade ago but failed to persuade customers to pay for the vehicles. His worries were echoed by Tom Elliott, executive vice president of American Honda. He said Honda would sell more than 50,000 hybrids in the U.S. this year. But the vehicles would earn only "barely" above break-even. Both Honda and Nissan said they would have to look at expanding conventional vehicle production in north America after a strong year of sales. Ghosn said new production capacity would "probably" be needed in the U.S. as Nissan's two factories were full, although he did not say when expansion would be needed. His declared strategy is to minimize currency risks by producing near the market. Elliott said Honda would "have to discuss" building a new North American factory after filling its capacity of 1.4 million in the region. He expects sales to reach 1.45 million this year.

Topics:Operations

More Operations

Automotive Fleet news graphic featuring a woman pointing to the headline, “From AI Prompts to AI-Generated Safety Songs,” against a blue background.
Operationsby Faith HowellSeptember 4, 2026

From AI Prompts to AI-Generated Safety Songs | AF News Recap

Can better prompts make AI more useful for fleet managers? This week, we’re breaking down smarter fleet analysis, an AI-assisted experiment that turned safety training into music, and what happened to fuel prices in August.

Read More →
Interviewee photo and quote from her
Operationsby Chris BrownSeptember 1, 2026

How to Write Better AI Prompts for Fleet Analysis

Include these six elements in your fleet prompts to generate more relevant analysis and accurate answers.

Read More →
A Fleet Meets blue, red, and teal graphic with Eric Kilgore's headshot, title, and company.
Operationsby Faith HowellAugust 21, 2026

Fleet Meets: Eric Kilgore

This edition of the Fleet Meets series features one of the industry's best leaders driving multi-market and national operations.

Read More →
Ad Loading...
fleetio coast pay cost
SponsoredAugust 13, 2026

Why Reactive Fleet Management Is Becoming Too Expensive to Sustain

Research highlights a growing need for proactive management strategies to address rising costs in fleet operations effectively.

Read More →
"Element Mobility report cover with a utility fleet truck and the title 'What your fleet KPIs aren't telling you.'"
SponsoredAugust 12, 2026

What Your Fleet KPIs Aren’t Telling You

Tracking fleet metrics is only useful when the data leads to better decisions. This guide helps fleet leaders assess cost, utilization, and downtime more accurately, identify performance gaps, and prioritize the actions that can improve operational results.

Read More →
Cover of the AgileFleet white paper "Hidden in Plain Sight: Fleet Compliance Risks" with the AgileFleet logo and a photo of fleet vehicles parked outside a government building.
SponsoredAugust 7, 2026

Hidden in Plain Sight: Fleet Compliance Risks

Fleet compliance isn't just about having policies — it's about consistently enforcing them. This practical guide reveals six hidden compliance risks common in public sector and shared fleet operations and outlines proven strategies to improve visibility, accountability, and audit readiness

Read More →
Ad Loading...
Turning Fleet Payment data into executive insights blue podcast thumbnail
OperationsAugust 5, 2026

Turning Fleet Payment Data into Executive Insights

Does data alone drive results in operations?

Read More →
Graphic promoting Automotive Fleet's 2026 Personal Use Survey with the text "Have a Personal Use Policy? We Want to Know!" encouraging fleet managers to complete the annual industry survey.
Operationsby StaffAugust 5, 2026

Automotive Fleet Opens 2026 Personal Use Survey for Commercial Fleet Managers

Commercial and corporate fleet managers are invited to share how their organizations handle company vehicle personal-use policies, charges, and driver eligibility.

Read More →
Gary Van Orden Retirement
Operationsby Jeanny AbrahamJuly 31, 2026

Gary Van Orden Retires After Nearly Four Decades in Commercial Fleet

From answering customer calls at Ford Motor Company to leading fleet sales across multiple OEMs and a fleet management company, Gary Van Orden's career reflects nearly four decades of leadership in commercial fleet.

Read More →
Ad Loading...
an Automotive Fleet podcast thumbnail
OperationsJuly 31, 2026

How Stellantis Plans to Get Ahead of Fleet Downtime

Vehicle acquisition may grab the headlines, but fleet uptime increasingly determines operating success. Darren Bradshaw of ‪Mopar‬ North America gives the details.

Read More →