Electric cars spell the end for diesels

CAR manufacturers that depend on diesel engines will struggle increasingly as electric vehicles gain prominence, according to former Nissan Europe chairman Paul Willcox.

Sales of diesel vehicles have plummeted due to fears about new taxes being slapped on them, questions about their cleanliness and the Government’s desire to ban them outright. In contrast, sales of hybrid and electric vehicles have been accelerating.

Willcox, who left Nissan after 26 years in March, said that while the electric vehicle market is still in its infancy, it will take off as the infrastructure to support the cars improves and more charging points are installed. There are 18,000 charging points in the UK according to zap-map.com.

“The market is growing tremendously, no question about it. Ten years ago, many were questioning the validity of electric vehicles, but now manufacturing production and consumer awareness is growing and government incentives are helping to grow the market,” he said. “Diesel will continue to decline and those manufacturers that depend on it will have the biggest job adjusting to electric.”

Last month Willcox joined electric vehicle charging point manufacturer Andersen EV as non-executive director.

Nissan, which last week deposed chairman Carlos Ghosn, is looking to increase its stake in alliance partner Renault as part of efforts to dilute the French manufacturer’s influence, according to Japan’s biggest selling newspaper, the Yomiuri Shimbun.

The Japanese manufacturer owns a 15 per cent stake in Renault, with no voting rights, as well as 34 per cent of alliance partner Mitsubishi. However, Renault has a 43 per cent stake in Nissan and the right to vote on the Tokyo-based firm’s board.

It is understood that Renault’s dominance is resented by Nissan executives, who want a more equal relationship. To that end, they want Renault to reduce its stake and for Nissan to increase its shareholding in the French firm.