Nissan Eyes Exporting Chinese-Made Electric Cars to Canada

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(Bloomberg) — Nissan Motor Co. is considering exporting cars built at a joint venture with its Chinese partner to Canada, which is opening up its market to electric vehicles made in China.

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The Japanese carmaker aims to tap demand for low-cost, electric vehicles manufactured with Dongfeng Motor Group Co. in several markets, including Brazil and Mexico — and potentially including Canada, Christian Meunier, Nissan’s head of the Americas, said in an interview. 

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“In Canada, the government has opened the door for some Chinese products,” he said, although he didn’t specify which Nissan Dongfeng models were under consideration for possible export to Canada, or how soon that might take place. “We’re looking at this.”

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Nissan’s push reflects a broader shift in the global auto industry as established carmakers lean on China’s lower production costs and faster EV development cycles to stay competitive. Ivan Espinosa, the Japanese carmaker’s chief executive officer, is seeking to revive a company weighed down by an aging vehicle lineup, heavy debt and years of management turmoil.

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The Canadian government agreed in January to scrap a de facto ban on EVs built in China and allow as many as 49,000 of them into the country annually. Several Chinese carmakers have expressed interest, and Tesla Inc. recently began advertising a Model 3 sedan available in Canada for just C$42,132 (about $30,900) after delivery fees, a steep drop from its previous list price. 

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That car appears to be sourced from the company’s Shanghai factory, though Tesla did not respond to a request for comment.

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Espinosa has said his company plans to ramp up exports from China — 100,000 units at first, then eventually 300,000. The first of those bound for Latin America will be an electric sedan called the N7 and a pickup truck dubbed the Frontier Pro. 

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Nissan is leaning on China to help reverse its fortunes as it faces mounting headwinds in the US and Japan. 

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Its growth plan in China not only involves exporting EVs abroad, but also includes an ambition plan to reach 1 million units in annual sales by the end of the decade.

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Meanwhile, the company is showing signs that cost cuts are beginning to help assuage its financial crisis, as Nissan recently forecast an operating profit that ended up well above analyst expectations.

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(Updates to add background.)

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