Renault to develop electric cars for Israel project

By Steven Scheer

JERUSALEM (Reuters) - The Renault-Nissan (RENA.PA: Quote, Profile, Research, Stock Buzz) (7201.T: Quote, Profile, Research, Stock Buzz) alliance on Monday signed a deal to begin mass producing electric cars as part of an Israeli-led project to develop alternative energy sources and slash oil dependency.

Renault-Nissan Chief Executive Carlos Ghosn said the cars, with a range of about 100 km in city driving and up to 160 km on the highway, will accelerate from zero to 100 kph in 13 seconds and have a top speed of 110 kph -- similar to many gasoline-powered cars.

Ghosn said a key reason why the company chose Israel to launch the project is because 90 percent of Israelis drive less than 70 km a day and all major urban centers are within 150 km of each other. For Israel the cars would mean less dependency on oil imports, mostly coming from Russia.

The cars, to be made in Europe, will run on a battery developed by Nissan and Japan's NEC (6701.T: Quote, Profile, Research, Stock Buzz) and will be available in 2011. A prototype is already on the road in Israel and various models will be sold by Renault and Nissan.

"It will be the most environmentally friendly mass-produced car on the market," Ghosn said at a Fuel Free Transportation ceremony at the office of Israeli Prime Minister Ehud Olmert, adding the main appeal of the cars is that they were as "normal as possible" while operating quietly.

He said the car would cost the same or less than comparable gasoline engine autos and would have a lifetime warranty.

Ghosn said Renault-Nissan will also market the cars in yet to be determined European countries and Asia and later to the United States.

"We expect this car to be successful," Ghosn told reporters. "We want to make sure we mass market 10,000 to 20,000 cars a year in Israel ... We are determined to make it a success."