Fiat Chrysler chief Sergio Marchionne told a conference in Washington that every electric Fiat 500 the company sells costs it US$14,000.
In an extraordinary speech at the Brookings Institution he told the audience not to buy a 500e because he is tired of losing money, adding that Tesla Motors was the only company making money on electric cars because of the higher price point for its Model S sedan.
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Marchionne decryed US federal and state mandates that push manufacturers to build electric cars, saying he hoped to sell the minimum number of 500e cars possible.
He told the conference: “I hope you don’t buy it because every time I sell one it costs me $14,000. I’m honest enough to tell you that.”
The petrol-powered 500 starts at almost US$17,300 including delivery charges, while the 500e starts at US$32,650 before federal tax credits. Marchionne said consumers are not willing to pay a price that covers Fiat’s costs so it loses money on the 500e.
Up to the end of April, Fiat sold 11,514 500s in the US, down 15% from the same period a year ago although but the company does not break out 500e sales.
Marchionne added that if it had to build just electric cars “we’ll be back asking… in Washington for a second bailout because we’ll be bankrupt.”
The state of California’s zero-emission vehicle mandates and federal fuel efficiency requirements for 2025 are pushing carmakers towards more electric cars but Marchionne said he would prefer the US Department of Energy to simply set targets and let the manufacturers achieve them in their own way.
