Chrysler to lose $10,000 on every Fiat 500 EV it builds

Fiat 500 EV
Fiat 500 EV

According to Fiat/Chrysler CEO Sergio Marchionne, the Auburn Hills automaker will lose more than $10,000 on every Fiat 500 Electric it sells. Nonetheless, the heavy financial hit won’t stop the company from producing the Chrysler-built electric version of the Fiat 500 in the United States in 2012.

“The economics of EVs simply don’t work. On the 500 that (Chrysler) will begin selling in the U.S. next year, we will lose over $10,000 (per unit) despite the retail price being three times higher” than a version of minicar with an internal combustion engine, Marchionne said.

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He said that Fiat would lose a similar amount on the Fiat 500 EV it gets from Chrysler’s Mexico plant once the Italian company starts selling the car in 2013.

Fiat 500EV:

2011 Fiat 500 (North America):

– By: Omar Rana

Source: Automotive News