The decision to drop the price of its Leaf electric vehicle by $6,400 in the U.

S. almost overshadowed Nissan’s other news at the 2013 North American International Auto Show last week.

After falling far short of the 20,000 units the Japanese auto maker aimed to sell to Americans annually, the price cut was seen by industry-watchers as a lifeline for the full-battery EV, which tallied 9,819 sales in the U.S. last year.

The price drop from the ’12 to ’13 model, from $35,200 to $28,800, is almost entirely due to Nissan’s decision to localize production of the car and many of its components at its Smyrna, TN, plant, Executive Vice President Andy Palmer tells WardsAuto in an interview.

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Nissan Credits Leaf Price Drop Of $6,400 To Cheaper American Production Costs

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