Future of electric cars needs juice

In Japan and the U.S., the plan for battery-powered autos is throwing off sparks as they move closer to production.

NEW YORK (Fortune) — While the U.S. auto industry celebrates the impact of the government’s cash for clunkers program on July sales, two events separated by thousands of miles should give pause to those whose world view extends beyond next week.

After all, it was a foregone conclusion that cash incentives to purchase new cars was going to boost sales, no matter how complicated or confusing the government made the process.

It is far less obvious how the industry is going to deal with other government initiatives to produce cars that burn less imported oil and produce fewer emissions.

That vision is, if anything, fuzzier this week after two events on opposite sides of the world.

In Yokohama, Japan, Nissan CEO Carlos Ghosn used the opening of the automaker’s new corporate headquarters to unveil its first all-electric car called the Leaf.

Details were scant for the Leaf, a four-door subcompact, which will go on sale in the U.S. and Japan next year.

But Nissan did say that the car will go 100 miles on a charge and that the batteries alone will cost about $10,000. Customers are intended to buy the car and lease the batteries.

That implies two things: Nissan will not be selling very many Leaves in Oklahoma or any other state with wide open spaces. And sales, when they do occur in more densely-populated areas, will be limited to those who are willing to pay a premium to be environmentally responsible.

CNN