5/21/2014

Fiat-Chrysler CEO: Don't Buy Our EVs

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Fiat Chrysler Automobiles CEO Sergio Marchionne says the company loses $14,000 on every electrified Fiat 500 minicar it sells in the U.S. and so he urges consumers not to buy one, Reuters reports.

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Fiat Chrysler Automobiles CEO Sergio Marchionne says the company loses $14,000 on every electrified Fiat 500 minicar it sells in the U.S. and so he urges consumers not to buy one, Reuters reports.

Marchionne complains to a conference audience in Washington, D.C., that FCA makes the 500e only to satisfy government mandates such as those in California that dictate EV sales levels. Like most other auto industry executives, he prefers to have regulators set fuel economy and emission levels and allow manufacturers to figure out which technologies to use to meet them.

He estimates that FCA will need to make at least half its sales mix to hybrids to meet U.S. fuel economy standards for 2025.

Reuters notes that a piston-powered 500 retails in the American market for about $17,300. The electric version is priced at $32,700. Marchionne's comment about losses on the latter model suggests the true cost of a 500e is close to $47,000.

Marchionne declares that the huge loss per car means FCA will sell the smallest number of 500e car required "and not one more."