Marchionne Says There's No Viable Economic Model For Electric Cars

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Fiat Chrysler Automobiles chief executive Sergio Marchionne says that there is currently no viable economic model to produce electric cars and make a profit.

Recently speaking to reporters at an event earlier this week, Marchionne used Tesla as an example of how difficult it is to make money while producing electric cars, The Street reports.

“We still don't have a viable economic model for delivering an electric car.

“As much as I like Elon Musk, and he's a good friend and actually he's done a phenomenal job of marketing Tesla, I remain unconvinced of a ... economic viability of the model that he's pitching,” Marchionne said.

The outspoken executive believes that the current high costs of building electric cars means automakers should be focusing on hybrids and wait for the cost of all-electric vehicles to come down.

“How do we find a convergence of technology bringing prices of components down and allows us to price accordingly?” Marchionne pondered during his speech.

“Or we need to navigate through this process in a combined way between combustion and electrification to yield at least a minimum amount of economic returns that allows for our continuity,” he said.

He later corrected reports of FCA losing $20,000 on every Fiat 500e by saying those figures were based on component costs in 2010-2011, not in 2017.

“We’re not betting the bank of going fully electric in the next decade. It won’t happen.”

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