Everyone knows hybrid and electric vehicle sales are much smaller than those on conventionally-powered models. After all, the high-tech systems found in today's green cars are still pretty expensive.
Fiat-Chrysler CEO Sergio Marchionne said that Chrysler Group LLC will lose more than $10,000 on every Fiat 500 EV it sells.
Last year, Marchionne predicted that the production model would start at $32,000 in the U.S., with the batteries accounting for half of the minicar's cost.
You think the automaker will use common sense and not come to market with an electric Fiat 500? Well, you're wrong. The heavy financial hit won't stop Chrysler from launching the greener model in America in 2012, mainly to enhance the company's electric mobility expertise and lower its average U.S. fuel consumption total in accordance with the CAFE standards.
At the same time, this will further reduce Fiat Group's fleet CO2 on a global scale (they already have the lowest fleet CO2 in Europe at 125.9 grams per kilometre).
Although the per-unit loss is high, the automaker's total financial hit should be minimal since a low volume of the electric 500 will roll out of the factory.
Pressured to improve fuel economy and remain competitive in the race to offer alternative powertrains, Chrysler-Fiat will seemingly stop at nothing to lead the industry, including selling cars at a loss. Is that clear evidence that EVs and hybrids represent the future of the automobile or what?
Source: Automotive News
Fiat-Chrysler CEO Sergio Marchionne said that Chrysler Group LLC will lose more than $10,000 on every Fiat 500 EV it sells.
Last year, Marchionne predicted that the production model would start at $32,000 in the U.S., with the batteries accounting for half of the minicar's cost.
You think the automaker will use common sense and not come to market with an electric Fiat 500? Well, you're wrong. The heavy financial hit won't stop Chrysler from launching the greener model in America in 2012, mainly to enhance the company's electric mobility expertise and lower its average U.S. fuel consumption total in accordance with the CAFE standards.
At the same time, this will further reduce Fiat Group's fleet CO2 on a global scale (they already have the lowest fleet CO2 in Europe at 125.9 grams per kilometre).
Although the per-unit loss is high, the automaker's total financial hit should be minimal since a low volume of the electric 500 will roll out of the factory.
Pressured to improve fuel economy and remain competitive in the race to offer alternative powertrains, Chrysler-Fiat will seemingly stop at nothing to lead the industry, including selling cars at a loss. Is that clear evidence that EVs and hybrids represent the future of the automobile or what?
Source: Automotive News