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Judge nixes Nissan's $1B New York City taxi plan

Chris Woodyard
USA TODAY
  • A judge has rejected a commission%27s plan to make Nissan the exclusive New York City taxi
  • Nissan had planned to sell %241 billion of its NV200s over 10 years
  • The taxi was specially built for New York City

Plans to flood New York's streets with the Taxi of Tomorrow hit a roadblock Tuesday when a judge ruled that the city's Taxi and Limousine Commission went too far when it ordered operators to buy a only a single brand of vehicle.

A prototype of the Nissan NV 200 New York City taxi

The big loser in this case is Nissan, which has specially equipped its NV 200 as the "Taxi of Tomorrow" in a deal worth $1 billion over 10 years.

In an action brought by taxicab operators, state Supreme Court Justice Shlomo Hagler in Manhattan says the commission can't require the purchase of a particular vehicle under the city charter.

Nissan had gone to great lengths to try to outfit the perfect taxicab, with germ-killing seat upholstery, rear-seat video, big sliding doors and "low-annoyance" horns. Plus, the taxis are far more fuel efficient than the Ford Crown Victorias they replace. But at $29,700, the taxis are pricey.

Nissan issued a statement saying it is undeterred.

"We are disappointed in the court's decision, but it will not prevent our plan to start upgrading the NYC taxi fleet with the Nissan Taxi of Tomorrow at the end of the month," the statement says. "Given the specific NYC taxi research and development that we have conducted, we are confident that the Nissan taxi provides optimal safety, comfort and convenience for passengers and drivers alike. We are evaluating options for next steps regarding the exclusivity contract."

The court ruling opens the door to a raft of other automakers, many of whom already have footholds in the New York taxi fleet.

One is Ford, which just unveiled the 2014 version of its Transit Connect taxi. It has been scratching to stay in the New York market, where Transit Connects and Escape Hybrid SUVs are already part of the mix.

"Ford has consistently taken the position that a competitive market is in the best interest of the taxi fleet and their customer," it said in a statement. "Ford has a proven track record of developing products that meet the needs of taxi fleets across the country and in New York City through continually improving our products in response to customer demands."

Contributing: The Associated Press

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