Nissan is keen to take advantage of the US tax credit on electric cars

Nissan is keen to take advantage of the US tax credit on electric cars

Japan's Nissan said it would push the power of electric cars to take advantage of a new US law that grants up to $7,500 in tax credits on Friday.

Last month, President Joe Biden signed a landmark climate change and health care bill. The tax credit can be used to defray the cost of purchasing an electric vehicle made in the United States.

The Nissan Leaf electric vehicle is among the eligible models. Still, by law, vehicles must have a battery made in North America with minerals mined or recycled on the Continent to be suitable.

Head of Sustainability Joji Tagawa acknowledged that the onboarding process was complex while stressing that Nissan is keen to take advantage of the law to reduce costs to the customer.

"We're in the process of doing a comprehensive analysis right now," he told reporters in an online briefing, noting that details of what Nissan might do had yet to be determined.

Tesla models, as well as the Ford F Series electric car, BMW X5, and Jeep Wrangler plug-in hybrid, are among the models that will be eligible for tax credits.

Nissan Motor Co., allied to French carmaker Renault, was among the first to adopt zero-emissions all-electric vehicles with The Leaf, which went on sale in 2010. More than 600,000 Leaf electric vehicles have been sold worldwide world so far.

Major automakers worldwide recently announced investments to accelerate the move toward electric vehicles as concerns about climate change and gas prices grow.

Nissan said it is trying to make its operations and products cleaner, safer, and more inclusive and is examining sourcing, production, and sales and its lineup. Tagawa said the company, based in Yokohama, Japan, will work with coalition partners and governments to achieve these goals.

Nissan's brand image was tarnished when Carlos Ghosn, a prominent Nissan CEO for two decades, was arrested in Japan in 2018 on charges of understating his compensation and misusing company funds. Ghosn was released on bail in December 2019 and now lives in Lebanon. He says he is innocent and has been unfairly targeted by some at Nissan concerned about Renault gaining more influence.