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SaintLouieWoman
04-06-2011, 02:42 PM
Fiat 500 EV Will Cost Chrysler

Chrysler will lose $10,000 on every electric Fiat 500 it sells, CEO says.

By Luca Ciferri of (http://editorial.autos.msn.com/article.aspx?cp-documentid=1183546&icid=autos_money2)
AutoWeek (http://www.autoweek.com/)

(http://editorial.autos.msn.com/article.aspx?cp-documentid=1183546&icid=autos_money2)http://fp.images.autos.msn.com/Media/425x255/8d/8d86b8f5e8bc48aeaa72f40f2824da94.jpgClick to enlarge picture (http://editorial.autos.msn.com/photopopup.aspx?cp-documentid=1183546&mediaid=8d86b8f5e8bc48aeaa72f40f2824da94)

A prototype of the Fiat 500 EV was shown at the Detroit Auto Show in January 2010.






(http://editorial.autos.msn.com/article.aspx?cp-documentid=1183546&icid=autos_money2)Chrysler (http://autos.msn.com/browse/Chrysler.aspx) Group LLC will lose more than $10,000 on every battery-powered (http://editorial.autos.msn.com/article.aspx?cp-documentid=1183546&icid=autos_money2)Fiat 500 (http://autos.msn.com/research/vip/default.aspx?make=Fiat&model=500) its sells, Fiat-Chrysler CEO Sergio Marchionne says.
That heavy financial hit won't stop the automaker from launching the Chrysler-built electric version of the minicar in the United States in 2012, underlining the pressure automakers face to improve fuel economy and remain competitive in the race to offer alternative powertrains.
"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 the minicar with an internal combustion engine, Marchionne said on the sidelines of Fiat S.p.A.'s general meeting on Wednesday.
(http://editorial.autos.msn.com/article.aspx?cp-documentid=1183546&icid=autos_money2)Read: Chrysler to Build Electric Fiat 500 (http://editorial.autos.msn.com/article.aspx?cp-documentid=1135663)
Marchionne said that (http://editorial.autos.msn.com/article.aspx?cp-documentid=1183546&icid=autos_money2)Fiat (http://autos.msn.com/browse/Fiat.aspx) would lose a similar amount on the Fiat 500 EVs it will get from Chrysler's Mexico plant once the Italian company starts the car's European sales, likely in 2013. Chrysler has a license from Fiat to build the fuel- and battery-powered versions of the 500, which means the U.S. automaker gets all the profits or losses from North American sales of the cars. Fiat has a 25 percent stake in Chrysler.
Chrysler unveiled a concept of the 500 BEV (short for "battery-electric vehicle") at the Detroit Auto Show in January 2010. The gasoline-powered 500 starts at $15,500 in United States, which means the electric version would cost more than $45,000, based on Marchionne's comments.
(http://editorial.autos.msn.com/article.aspx?cp-documentid=1183546&icid=autos_money2)

snip

http://editorial.autos.msn.com/article.aspx?cp-documentid=1183546&icid=autos_money2 (http://editorial.autos.msn.com/article.aspx?cp-documentid=1183546&icid=autos_money2)

Would you buy one of these?

lacarnut
04-06-2011, 02:55 PM
Toyota Prius loses money on every one they sell and I believe they sell more than the rest combined. GM will lose more than Chrysler with the Volt. The Volt battery packs cost between 7 to 10 grand. Our hard earned money pissed down the drain by idiotic greenie ideas like Ethanol and electric cars. All the Env. nuts want 5 to 6 dollar gasoline so that the higher costs of electric cars will narrow the gap of being economically feasable.

noonwitch
04-06-2011, 03:11 PM
Chrysler has been making crappy cars for decades.

fettpett
04-06-2011, 03:30 PM
screw them. Ford isn't making these kind of asstarded decisions, I'll stick with them. oh and they are outselling GM and making a profit, and have better quality than Toyota

SaintLouieWoman
04-06-2011, 03:51 PM
Chrysler has been making crappy cars for decades.

My son made the mistake of getting a used Chrysler minivan. It was a total disaster. :eek:

jediab
04-06-2011, 04:06 PM
My son made the mistake of getting a used Chrysler minivan. It was a total disaster. :eek:

Well a good way to look at it is evetionally, after he has replaced all the parts in the minivan, he will have a new one. :)

Apache
04-06-2011, 04:36 PM
What the hell does Chrysler have to worry about?

The American taxpayer will take the loss. We're the one's keeping them afloat now...:rolleyes:

Articulate_Ape
04-06-2011, 07:07 PM
Would not buy. It is little more than riding Ginger's eBicycle wearing a poncho and goggles, and frankly less comfortable and less "green".

Rockntractor
04-06-2011, 07:29 PM
I have seen nicer styling on portapotties.

SaintLouieWoman
04-06-2011, 10:08 PM
Well a good way to look at it is evetionally, after he has replaced all the parts in the minivan, he will have a new one. :)

Well, after the engine went (and everything else) he had no money left. He had to walk from it and buy a junker with cash. It definitely wasn't a good experience financially.

Madisonian
04-06-2011, 10:15 PM
I have seen a few of the Fiats driving around the area of Chrysler HQ in Michigan. Not sure if they are gas or electric, but they always were seen in threes.
I guess that is to beat the odds of the drivers having to walk back if they broke down.

They are some ugly sumbitches.

noonwitch
04-07-2011, 08:40 AM
screw them. Ford isn't making these kind of asstarded decisions, I'll stick with them. oh and they are outselling GM and making a profit, and have better quality than Toyota


Ford rules. I'm from a Ford family. My grandpa and one uncle were engineers, and my "slow" uncle worked grounds and packaging at the Rouge plant.

Starbuck
04-07-2011, 08:45 AM
I don't understand.

Chrysler loses 10 grand every time they sell a car.

So I went to the dealer and told them that for only 5 grand I would just go away. They could keep the car.
They said no.:confused:

Odysseus
04-07-2011, 09:41 AM
I don't understand.

Chrysler loses 10 grand every time they sell a car.

So I went to the dealer and told them that for only 5 grand I would just go away. They could keep the car.
They said no.:confused:
See, you're thinking too small. You should have said that you were there to not buy twenty cars, and that you would save them $100,000. If you think in terms of volume, you can make it worth their while. Or, better yet, go to Washington and tell them that you won't buy 1,000 Chryslers, and that you will save them $10 million. They may give you some stimulus money. :D

Ford rules. I'm from a Ford family. My grandpa and one uncle were engineers, and my "slow" uncle worked grounds and packaging at the Rouge plant.

I used to be a GM guy, but I had a few bad experiences with them. Mrs. O loves Hondas, and we've never had a single problem with them.

fettpett
04-07-2011, 09:41 AM
Ford rules. I'm from a Ford family. My grandpa and one uncle were engineers, and my "slow" uncle worked grounds and packaging at the Rouge plant.

My uncle worked on the Escape as an engineer in Germany. He's been with them for years

fettpett
04-07-2011, 09:42 AM
shouldn't we get a car automatically....seeing as we're paying for the shit to begin with...

KhrushchevsShoe
04-07-2011, 10:13 AM
Didn't Apple lose money selling iPods too?

fettpett
04-07-2011, 10:21 AM
Didn't Apple lose money selling iPods too?

ah....NO. maybe on the Ipads, not ipods, not for years

Starbuck
04-07-2011, 10:29 AM
What the small, and limited thinkers in Washington don't get is that this car represents the perfect opportunity for the U.S to get out of debt.

Follow:
They will sell 500 cars.
At a net loss of 10 G each............or 5 Million $

BUT They're forgetting about the 311,120,558 (as of April 6) who didn't buy a car, thereby saving the government 10G X 311,120,558 or 3.11120558 Trillion dollars.

In one year!

Then all they have to do is repeat this event for about 5 years and PRESTO! We're outa debt.:)

Odysseus
04-07-2011, 11:06 AM
Didn't Apple lose money selling iPods too?
Possibly, but they didn't request a bailout.

What the small, and limited thinkers in Washington don't get is that this car represents the perfect opportunity for the U.S to get out of debt.

Follow:
They will sell 500 cars.
At a net loss of 10 G each............or 5 Million $

BUT They're forgetting about the 311,120,558 (as of April 6) who didn't buy a car, thereby saving the government 10G X 311,120,558 or 3.11120558 Trillion dollars.

In one year!

Then all they have to do is repeat this event for about 5 years and PRESTO! We're outa debt.:)

What's scary is that there are people in Washington who will buy that logic.

hoplophobe
04-07-2011, 11:07 AM
What the small, and limited thinkers in Washington don't get is that this car represents the perfect opportunity for the U.S to get out of debt.

Follow:
They will sell 500 cars.
At a net loss of 10 G each............or 5 Million $

BUT They're forgetting about the 311,120,558 (as of April 6) who didn't buy a car, thereby saving the government 10G X 311,120,558 or 3.11120558 Trillion dollars.

In one year!

Then all they have to do is repeat this event for about 5 years and PRESTO! We're outa debt.:)

You do realize someone in DC is thinking that right now.

KhrushchevsShoe
04-07-2011, 12:04 PM
ah....NO. maybe on the Ipads, not ipods, not for years

I thought they always took a loss on them so it would broaden itunes. It was an old article, it may have been bullshit.

I know the guys have to take a loss on the phones... the price at which I got mine doesnt make sense.

AmPat
04-07-2011, 12:23 PM
I bought a Ford Explorer and 4 F-150's. The Explorer needed the drivers seat replaced (rail manufacturer defect) and one of the F-150's had to have a TPS replaced. 20 years of essentially no problems with these "terrible" American vehicles. I will stick with Ford.

Madisonian
04-07-2011, 10:21 PM
I bought a Ford Explorer and 4 F-150's. The Explorer needed the drivers seat replaced (rail manufacturer defect) and one of the F-150's had to have a TPS replaced. 20 years of essentially no problems with these "terrible" American vehicles. I will stick with Ford.

What is in the garages right now...
1968 Cougar, my baby
1994 F150
2005 Lincoln Aviator At about 16mpg, doesn't get out much but drives the greenies crazy and can pull a house.
2010 Lincoln MKZ
2011 Ford Escape

MountainMan
04-07-2011, 10:34 PM
Chrysler has been making crappy cars for decades.

I disagree. They make a great truck line and their mid-sized Challengers and 300's are decent. Until Toyota and Nissan caught up with them about 7 years ago, they pretty much cornered the minivan market.

Odysseus
04-08-2011, 12:41 PM
I thought they always took a loss on them so it would broaden itunes. It was an old article, it may have been bullshit.

I know the guys have to take a loss on the phones... the price at which I got mine doesnt make sense.

The phones cost very little. The money is made on the service contracts. My last upgrade to a new Blackberry a few months ago was free (I haven't had to pay for a new one for six years), as long as I renewed my contract for two years.

fettpett
04-08-2011, 01:42 PM
The phones cost very little. The money is made on the service contracts. My last upgrade to a new Blackberry a few months ago was free (I haven't had to pay for a new one for six years), as long as I renewed my contract for two years.

actually thats not true, phones do cost a lot, the thing is that cell phones are heavily subsidized which is why we get cheap to free phones. If you go outside the US for a phone, you pay full price.

txradioguy
04-08-2011, 01:46 PM
I'm geting a Dodge...should be in the driveway in about 5 weeks when I get home...but mine doesn't look like that thing in the first post. MINE looks like this!


http://images.allamericanautomobiles.com/pictures/45903352.jpg



:D

fettpett
04-08-2011, 01:49 PM
im sorry :p

txradioguy
04-08-2011, 02:03 PM
im sorry :p

LOL! It's a compromise between me and She Who Must Be Obeyed.


I'm a lifelong Ford guy. She would rather walk than drive anything but a Chevy.

So we meet in the middle and somewhere up stairs my grandfather who was a 35 year Chrysler mechanic is smiling as well.


:D

AmPat
04-08-2011, 03:02 PM
I'm geting a Dodge...should be in the driveway in about 5 weeks when I get home...but mine doesn't look like that thing in the first post. MINE looks like this!


http://images.allamericanautomobiles.com/pictures/45903352.jpg



:D

Give me a call if you need my F-150 to tow it home.;)

fettpett
04-08-2011, 06:16 PM
LOL! It's a compromise between me and She Who Must Be Obeyed.


I'm a lifelong Ford guy. She would rather walk than drive anything but a Chevy.

So we meet in the middle and somewhere up stairs my grandfather who was a 35 year Chrysler mechanic is smiling as well.


:D

I'd tell her to walk, and make a sammich while she's at it

Madisonian
04-08-2011, 07:12 PM
She would rather walk than drive anything but a Chevy.


Doesn't buying the later virtually guarantee the former?:confused: