Symbiosis of people, vehicles and nature,
by Mark Grimm
President, Nissan Canada Inc.
Nissan Canada is proud to participate in the first ever "Green Agenda" program and we applaud the forward-thinking efforts of the organizers. Given the rapidly increasing focus on environmental issues, this is a program that is both timely and relevant to all Canadians.
At Nissan, we believe in an environmental philosophy of "symbiosis of people, vehicles and nature," and we are focused on how we can contribute to a truly sustainable mobile society. Sustainability is one of the key challenges of our time, as governments, businesses and citizens alike grapple with finding ways to ensure humanity and nature can continue to coexist on this planet over the long term.
While all cars and light trucks in Canada combined contribute only 12.5 per cent to overall greenhouse gas emissions (and new vehicles, only 1 per cent), Nissan accepts the sustainability challenge and is committed to addressing it head on - not just for altruistic reasons, but because it also makes fundamentally good business sense. We truly believe it is the right thing to do on every level.
As a one of the world's leading auto makers, Nissan constantly monitors and seeks ways to reduce the environmental impact of our business activities and the vehicles we produce. The centrepiece of Nissan's environmental commitment is our mid-term environmental action plan, Nissan Green Program 2010 (NGP 2010). Following up on an initiative that began in the mid-1990s, we announced late last year a series of specific commitments to all aspects of environmental management, including reducing CO2 emissions, reducing exhaust emissions, and accelerating recycling efforts. This strategy is designed to address immediate challenges, as well as creating the foundation for a long-term, sustainable business model.
With a specific focus on reducing CO2 emissions, NGP 2010 embraces a multi-prong product development philosophy that aims to deliver in a sustainable way the right technology, at the right time, in the right market, and at the right value to the customer. Our view is that no single technology has yet proven itself as the environmental panacea and, in fact, customers will ultimately decide which technology is most relevant and most useful.
At present, the world's major markets are all moving in different directions in this regard. In Europe, for example, advanced-diesel technologies are the clear favourite. In Brazil, Thailand and many other nations, bio-fuels are leading. In Japan and here in North America, hybrids have enjoyed a high profile, but that has yet to be matched by significant mass market penetration. And further in the future is the prospect of viable electric vehicles and, eventually, hydrogen-powered fuel-cell vehicles.
At Nissan, we have been researching and developing all of these technologies for many years to varying degrees. The most recent and tangible example here in Canada is the introduction this year of our first Hybrid Electric Vehicle (HEV), the 2007 Nissan Altima Hybrid. The Altima Hybrid offers all the style, convenience, comfort, quality, feel and performance technology features of the next-generation 2007 Altima - with the added benefits of enhanced fuel economy and reduced emissions.
We also recently announced that we will launch our first clean-diesel engine in Canada in 2010 in the Nissan Maxima, which will meet stringent government emission requirements.
On the electric vehicle front, we have been working for several years on the development of fuel cell technology, which is currently being tested in the X-Trail FCV. And Nissan and NEC recently established a joint-venture company to develop next-generation lithium-ion batteries for the global automotive community by 2009.
As a sincere "eco-innovator," Nissan continues to develop forward-looking green technologies that contribute to sustainable mobility. However, for the foreseeable future we believe the internal combustion engine will continue to serve as the primary power source for vehicles. In order to develop vehicles that are truly environmentally friendly, we need to make significant advances in internal combustion technology while working on electrical power sources in parallel.
As such, we continue to focus on our Continuously Variable Transmission (CVT) strategy, with an objective of selling one million CVT vehicles worldwide by the end of fiscal year 2007. Based on official government tests, CVT-equipped vehicles emit less CO2 than vehicles equipped with a conventional four-speed automatic transmission. We have also committed as part of NGP 2010 to launch a "three-litre car" - a gasoline-fuelled car that can travel 100 kilometres on three litres of fuel - by 2010.
While the auto industry has a pivotal role to play in the "green agenda," our efforts are obviously tied to the actions of government and regulators, as well. Here in Canada, the federal and provincial governments have been making various degrees of progress. Clear, co-ordinated government policy and action are critical in helping guide the response of the country's corporate citizens.
On the automotive front, while we applaud the current efforts, there are two fundamental elements that need attention if government policies are to be truly effective in achieving environmental objectives. First, we require harmonization of vehicle regulations for emissions, fuel quality and safety standards across every province (as well as the United States). Auto manufacturers cannot work with a patchwork of emission regulations across our country; likewise the Canadian market, which makes up 8.3 per cent of the North American market, cannot support unique vehicles due to non-harmonized regulations. Advanced vehicle technology also requires equally advanced clean-fuel standards to produce the desired end results.
Second, we believe industry environmental policy should be technology-neutral. That is, targets should be set for reducing emissions, for example, and manufacturers should be free to choose their own path to get there, rather than have them dictated by governments. Otherwise, we risk putting ourselves in a globally uncompetitive position.
Only if we work together can we truly conquer the long-term sustainability challenge. A great deal of work remains to be done in all aspects of environmental management. And the men and women of Nissan are committed to meeting this challenge and continually demonstrating our results along the way.
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