Due to Nissan’s decision to produce the next-generation LEAF in the UK, it will no longer be eligible for the US market’s Individual Retirement Account (IRA) tax deduction. The LEAF, as a Japanese car, was the first to be able to benefit from a $3,750 deduction for current models until the end of this year, starting last fall.
Last month, Nissan announced that it will invest 3 billion pounds (around $3.8 billion) in its Sunderland factory in the UK to produce the Juke, Qashqai EV, and LEAF.
The LEAF, set to be released by the end of 2024, is not expected to be produced in the US.
Nissan plans to transform the next-generation LEAF into a crossover coupe SUV. It has already previewed a concept car called “Chill-Out.” It is based on the same CMF-EV platform as the Ariya. The car will feature the e-4ORCE electric 4WD control system and a 5th-generation battery that provides 30% more energy density than the current 62kWh pack. The driving range has been increased to 385km (around 239 miles), similar to the Volkswagen ID.3 (with a 77kWh battery providing 343 miles).
However, if it is not produced in the US, it will not be able to receive a tax deduction, creating a handicap in competitiveness for low-cost models.
Nissan plans to launch 19 new electric cars by 2030. While Nissan has announced the launch of the next-generation LEAF in the European market, it plans to launch a new electric sedan in the US market in 2025. In the US market, the Ariya EV is far outpacing LEAF sales. Nissan sold 9,699 Ariya units in the US from January to September this year, while LEAF sales were capped at 5,804 units.
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