Nissan blames Leaf price hike in UK on falling pound

Last Thursday, we reported that the UK price of the Nissan Leaf will rise by 6.9 percent starting March 1st. That increase equates to an increase of £2,000 ($3,238 U.S. at the current exchange rate), driving the Leaf's MSRP way up to $50,310 before incentives. Initially, Nissan attributed the bulk of the Leaf's price hike to rising costs of raw materials, but there appears to be more to the story. The automaker now admits that depreciation of the pound is driving some of the Leaf's steep price increase.

Nissan Motor Great Britain spokesman Tom Barnard told Green Car Advisor that currency exchange rates have led to the Leaf's revised pricing. According to Barnard, the pound has depreciated against the yen by 13.4 percent over the last ten months and, since the Leaf is built in Japan, it is subject to exchange rate fluctuations. Nissan aims to remedy this situation by adding Leaf production to its Sunderland assembly plant in the UK in 2013. Until then, the price tag on Nissan's electric hatch in the UK will likely be subject to the value of the pound.

[Source: Green Car Advisor]