According to the report from 4 Wheel News, Fiat-Chrysler CEO Sergio Marchionne said that when the Fiat 500 electric minicar goes on sale in the U.S. next year, Chrysler will absorb the whopping loss on each car.
This, despite the fact that the price for car will be "three times higher" than the gasoline version of the car. Since that car starts at $15,500, that means the electric version could cost $45,000. When the concept was unveiled in 2010, Marchionne said the car would cost $32,000, with the batteries making up half of the minicar's cost.
Marchionne now says the economics of EVs "simply don't work."
Fiat owns 25% of Chrysler, but Chrysler has a license from Fiat to build the car, so Chrysler will take the losses for cars sold here. Fiat expects to absorb similar losses when the car is sold in Europe.
To read more, go to FutureCars.com