Despite overwhelmingly positive press for the Fiat 500e, the electric Fiat is known to be a bete-noir for Fiat CEO Sergio Marchionne. Speaking at the SAE Congress last week, Marchionne claimed that Fiat loses $10,000 on each 500e, describing it as “masochism”.
Marchionne has repeatedly stated that Fiat is only building the car to comply with California regulations that mandate the sale of zero-emissions vehicles. But despite rave reviews and an aggressive lease program, Marchionne has repeatedly made negative statements about the car. The Detroit Free Press quotes Marchionne on the nature of the money losing EV
“For every 500 electric that we produce even after all the subsidies we will lose about $10,000 bucks a car,” Marchionne said. “Doing that on a large scale would be masochism to the extreme.”
Machionne also urged governments to stay “neutral” on what technologies it decides to subsidize, citing the current trendiness of EVs versus the widespread enthusiasm for hydrogen a decade ago.
“A number of governments around the world including the U.S. have provided incentives for consumers to purchase plug-in electric vehicles and have provided direct incentives to manufacturers…my fear is that regulators are rushing precipitously into embracing electric vehicles as the only technological solution.”