New York City Is Finally Getting behind Nissan's 'Taxi of Tomorrow'

Starting in mid-April, New York City taxi operators will be required to purchase the Nissan NV200, a vehicle specifically designed by the Japanese automaker at the request of the city.

While Mayor Bill de Blasio isn't thrilled about the so-called "Taxi of Tomorrow," a 10-year contract with Nissan that makes the NV200 the official cab of New York could have serious financial repercussions if the city's side of the bargain isn't fulfilled, the New York Times reported.

Nissan has invested more than $50 million in the taxi program, and the carmaker could recoup its expenses and drain the city of more if New York doesn't honor its $1 billion contract.

Winning the exclusive contract three years ago, Nissan has since been tangled in various legal constraints, while critics have argued that the billion-dollar contract was an overreach on the part of the Bloomberg administration.

Of New York's 14,000 or so cabs, only around 500 are Nissan NV200s.

New York officials have announced a revised agreement that may minimize Nissan's exclusivity; in one change, Nissan does not have the exclusive right to sell hybrid vehicles.

"Owners with medallions for wheelchair-accessible vehicles remain exempt from the requirement to buy an NV200 as well," the Times reported. "In all, officials said, the NV200 is expected to make up about 80 percent of the fleet."

Advocates have objected to the Nissan design on behalf of wheelchair users because the vehicle requires entry from the rear. The Bloomberg administration made a pledge last year to make half of the wheelchair-friendly by 2020; however, no concrete plans of how that agreement will be paid for have been announced. 

The Nissan NV200 isn't quite in the clear yet. The Greater New York Taxi Association, which claims to represent a third of the city's taxi owners, has a pending appeal against the vehicle.

In October, New York state's Court of Appeals agreed to hear the lawsuit accusing the city of overstepping boundaries in striking the deal with Nissan. The lawsuit claims that the lack of competitive pricing will hurt taxi owners; that the city had no legal right to award the contract to Nissan; and that the specially designed NV200 is "unproven."