Ghosn joins Musk in questioning viability of fuel cell vehicles

Ghosn: ''Where is the infrastructure? Who's going to build it?''
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TOKYO (Bloomberg) -- Nissan Motor Co. CEO Carlos Ghosn said the market won't be ready for fuel cell vehicles before 2020, joining Tesla Motors Inc.'s Elon Musk in questioning the future of hydrogen-powered cars.

Such cars only have a few locations to refuel and the required infrastructure would be prohibitive to build, according to Ghosn, echoing similar comments by Musk last month.

Nissan, along with Renault, which Ghosn also heads, has invested heavily in electric vehicles, while U.S. company Tesla builds battery-driven sports cars.

Nissan is pushing back its plans for fuel cell cars as the same issue that has dogged electric vehicles will also work against hydrogen cars, with consumers waiting for facilities to be built and investors wanting the cars to be more widespread, Ghosn said at the Tokyo auto show today.

"I would be very curious and interested to see competitors who say they are going to mass market the car in 2015," said Ghosn, an early proponent of electric vehicles. Where is the infrastructure? Who's going to build it?''

Automakers from Toyota Motor Corp. to General Motors Co. have invested in fuel cell technology as an alternative to electric vehicles, which have been dogged by concerns including cost, safety, limited range and access to recharging facilities.

Tesla, under U.S. scrutiny for vehicle-fire risk, said Tuesday that it made an adjustment to its Model S sedan to reduce the risk of battery packs being punctured and catching fire after hitting objects in the road.

Not workable

Musk said in Munich in October that there's "no way" that fuel cell vehicles will be a workable technology. He wasn't present at the Tokyo auto show, where Tesla was participating for the first time and exhibiting the Model S.

Both Toyota and Honda Motor Co. have said they plan to sell hydrogen-powered cars by 2015. Toyota is working on fuel cell vehicle research with BMW. The Japanese carmaker is displaying a concept version of a hydrogen-powered car at the Tokyo show.

"Five years on, we don't think there'll be any dominant technology but various different green technologies," said Satoshi Ogiso, a managing officer at Toyota. "For Toyota, we try to be prepared for any kind of demand that's expected to arise."

Honda and GM signed a pact this year to work on the technology, while Renault and Nissan are partnering with Daimler and Ford Motor Co. to develop hydrogen cars.

Separately, Ghosn said Renault-Nissan will miss its target to sell 1.5 million electric vehicles by 2016. The automakers, which have sold about 120,000 EVs to date, will probably take an extra "two or three years" to reach the target than previously expected, he said. "2016 was optimistic? Yes, obviously, we are already practically in 2014, we know what are the volumes," said Ghosn. "We continue to believe that electric cars are going to the major component of the car industry."

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