FCA loses a staggering $20,000 on every one of its all-electric cars
October 2, 2017 Matthew DeBord
($20,000 in the hole.FCA)
Automakers are rapidly embracing an all-electric future. But there's a
catch: Nobody has figured out how to make a profit on electric cars.
On Monday, General Motors pledged that it would unveil 20 new electric cars
by 2023, effectively committing the company to an all-electric portfolio at
some point in the future. GM Vice-President Mark Reuss said that the
carmaker would be profitable in the undertaking.
At the moment, the industry is unclear on when those profits will arrive.
And some automakers are losing money hand over fist as they struggle to read
the crystal ball.
Reporting for Bloomberg, Tommaso Ebhardt pointed out that "[B]attery-powered
autos have yet to become profitable" and noted that Fiat Chrysler
Automobiles CEO Sergio Marchionne said in a recent speech that FCA is losing
up to $20,000 a car on the electrified Fiat 500.
(But the vehicle isn't unpopular.FCA)
The 500e sells in the US for about $33,000 and can travel 87 miles on a
single charge. On numerous occasions, Marchionne has complained about how
bad a financial deal the vehicle is for the automaker. However, he also
knows that FCA doesn't want to be left completely behind in the EV game, so
it's not surprising that the 500e remains in the lineup.
The 500e also has value as a "compliance vehicle," helping FCA meet
government-mandated fuel-economy requirements for the automaker's fleet
that's heavy on SUV and pickup-truck sales.
It's not hard to understand why the 500e makes Marchionne, an accountant and
finance professional by training: in 2017, the company has managed to sell
anywhere from about 500 to more than 700 of the vehicle monthly. That's
enough demands to keep it around — and to keep facing the $20,000 hit every
time a customer drives off the dealer lot.
Ferrari Says 'No Thanks' to Autonomous and Fully-Electric Cars
October 5, 2017 ... Fiat-Chrysler CEO Sergio Marchionne once famously
answered the question of an autonomous, fully-electric Ferrari by saying
"You'll have to shoot me first ...
EVLN: Their CEO sez "Don't buy the Fiat 500e EV"
... $14,000 each time it sells (Fiat) ] Company loses $14,000 on ever
electric vehicle Fiat-Chrysler's CEO had a strange request for electric
vehicle shoppers on Wednesday: don't buy the all-electric Fiat 500e. While
CEO Sergio Marchionne was speaking at a conference in Washington, he told
May 23, 2014
EVLN: 2013 Fiat 500 To Be Called 500E: Report
... Chrysler says it expects to lose up to $10,000 on each 500E ...
Aug 16, 2012
We will lose money on every electric car we supply to EESL: M&M's Pawan
Oct 05, 2017 Mahindra & Mahindra will not be making any money on any of the
150 fully electric sedans it has committed to supplying to the government
following its aggressive bid which matched Tata Motors ... we have been in
the electric vehicle business for sometime and we know the cost ... the M&M
EV was more powerful and bigger than the Tata Motors EV ...
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