Nissan Drops Price of U.S.-Made Leaf by More than $6,000 to as Low as $18,800 with Tax Credits

At the Detroit Auto Show, Nissan revealed the 2013 model year Leaf, which aside from a host of upgrades, will be built from now on in the U.S. at the brand's manufacturing plant in Smyrna, Tennessee.

As a result of the shift in production from Japan to the United States and the addition of a new base S model, Nissan has been able to trim the entry price by more than $6,000 (about 18 percent), to $28,800, or as low as $18,800 after a $7,500 federal tax credit and state rebate of $2,500.

The SV and SL models, which as made-in-Japan 2012MYs cost $35,200 and $37,250, are now priced at $31,820 and $34,840 respectively, excluding handling and delivery, as well as federal and state rebates.

"With nearly 50,000 LEAFs on the road globally, we are the leaders in zero emissions vehicles and our class-leading product just got better," said Billy Hayes, Global vice president of LEAF sales for Nissan. "From the very outset, Nissan has continuously advanced and refined the affordable zero emissions vehicle ownership experience.

Now customers won't have to pay a premium for owning a green car that's really fun to drive, and that's exciting."

The Japanese carmaker said it will also continue its lease offer for the 2013 LEAF, that starts from $199 per month for 36 months, and which includes tax credits and destination charges.

 most to be built in U.S.
 Nissan has just started building the electric Leaf at its Tennessee plant, a move to reduce production costs and boost U.S. sales with a new, lower-priced base model.

Nissan, hit by limited capacity and a weaker dollar, had been planning to build the Leaf in the U.S. since the car's launch in 2011. By 2015, the automaker said, it will manufacture 85 percent of its U.S. sales volume at its Smyrna, Tenn., plant, which also builds the Maxima and Altima.

The automaker has also started producing and assembling the car's lithium-ion battery in a nearby plant, instead of shipping the cells from South Korea to the U.S. for final assembly, as General Motors does for the Chevrolet Volt.

The Volt outsold the Leaf by more than two to one in 2012; the Leaf failed to reach even half of its 20,000 sales target. In total, about 19,500 Leafs have been sold in the U.S., compared with about 30,000 Volt models. Nissan has not released any estimate for 2013.

However, a new S trim level will be priced below the current base model's $36,050 price. In Japan, this trim (pictured above) throws out the alloy wheels for plastic covers and gets rid of the LED headlights and fog lamps. Nissan did not confirm what equipment would be deleted on the S, but we'd expect it to keep the alloys and lose the Leaf's standard heated front and rear seats -- plus its heated steering wheel. With the removal of the LED headlights -- an expensive option, even on Audi models -- the price could easily be $3,000 less. But that's just our guess.

What's more important for 2013 Leaf buyers is an updated warranty that will require Nissan to fix or replace the battery if its capacity drops by more than 30 percent within five years or 60,000 miles. Nissan bought back two cars in Arizona under the state's Lemon Law after dozens of owners in the Phoenix area complained of severe battery loss within the first two years.

Several company executives, including Executive Vice President Andy Palmer, flew from Japan to meet privately with Leaf owners in Scottsdale on Tuesday. Nissan has not admitted to any fault, but if they're not careful, lawsuits could start boiling over before the new production line finishes its first week.