Marchionne Says FCA Loses $20,000 On Every Fiat 500e

Creating electric vehicles isn’t cheap and Fiat Chrysler Automobiles is learning that the hard way.

During a speech at a university in Rovereto, Italy, FCA chief executive Sergio Marchionne revealed that the brand loses up to $20,000 on each electric Fiat 500e it sells. By comparison, it was reported last year that General Motors stands to lose $9,000 on every Bolt EV built.

Marchionne continued by saying that despite the huge losses, it has to continue to push ahead with the electrification of its range, Bloomberg reports.

“Because of the time-frame chosen in Europe, we have to electrify. But if you tell me that this is the answer, I say no,” he said.

Additionally, the outspoken executive said traditional carmakers need to speed up decision making to effectively compete with Tesla. According to Marchionne, “Elon moves at the speed of a rocket.”

Recently, reports surfaced suggesting that Hyundai was considering a purchase of FCA. However, the CEO also took the time to deny such reports but said he is still hoping to combine with a competitor in order to share future development costs.

PHOTO GALLERY

  • Bash

    So, is he going (this is becoming a habit from his end) to kill it?!

    • Auf Wiedersehen

      I think you could have just stopped your sentence at the parentheses and put the question mark after “going” because that’s what needs to happen.

      • Bash

        lol

  • Auf Wiedersehen

    Ah, I think I would have keep that one under your hat Serg….that doesn’t speak well of you. But…Who’s surprised?

  • KareKakk

    “…he is still hoping to combine with a competitor in order to share future development costs…”

    Wasn’t that the main reason for the merger with Chrysler, Dodge, Jeep and earlier brands? And you STILL have to share costs with further manufacturers?
    What is the end goal here in his mind; FCAMBToyPSATataGMDongFengBMWFord Ltd. with Marchionne at the end of the board? Looks really good for future choice and divercity of car models then…

    • Ryan Jones

      They combined but all are still using very different platforms and parts right?

  • LeStori

    Think the real question to be asked is whether any EV maker actually making money or is it just a bandwagon event? All aboard the bankruptcy train.

  • Bob White

    This is just proof that FCA is doing a poor job with electric cars. GM is making money with the Bolt and its 100X better.

    • gary4205

      Reading comprehension isn’t you thing…huh?

      Bolt loses $9,000 per car sold. Yeah, it’s only half what FCA loses on the 500e….but it doesn’t take a rocket surgeon to figure out making electric cars isn’t sustainable.

      If these companies weren’t all run by whores, they would come together and tell these governments worldwide to piss off!

  • gary4205

    Electrics are so 19th Century!

    The left wing religious extremists with their “global warming” SCAM intend to destroy civilization as well as world economies.

    There is no shortage of oil or natural gas. Both are CHEAP. And people can make money selling vehicles that run on either.

    So sick of these Luddites!

  • eye.surgeon

    FCA practically gives these 500e’s away, I see $99 leases for them. If they were compelling vehicles they wouldn’t have to put money on the hood, regardless of powerplant. Tesla would be very profitable if they chose not to plow billions into future product development.

  • themopar426

    he killed the 200 but keeps making this what a joke!

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