FCA Boss Thinks EV Cannot be Profitable but Autonomous Driving Tech Can Profit

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Automotive Editor

Justin Cupler has specialized as an automotive writer since 2009 and has been published in multiple websites and online magazines. In addition to contributing to CarsDirect, Justin also hosts a web-series car-review show and dabbles in the world of personal-finance writing.

His specialty is in the high-performance realm, but he has a deep love and understanding for all things automotive. Before diving into the world of writing, Justin was an automotive technician and manager for six years and spent the majority of his younger life tinkering with classic muscle cars.

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, Automotive Editor - June 13, 2016

Many believe that EVs are the way of the future, but there are some who remain skeptical. We can add FCA's own Sergio Marchionne to the list of skeptics as he still feels that EVs cannot be profitable, according to a conversation he had with CAR Magazine.

According to FCA's CEO, Tesla is the "iPhone of cars" and that while this tech makes money hand over fist for Apple, Tesla has yet to break the profit line on it P&L report just from selling its EVs. You may think Marchionne's talking from both sides of his mouth because Fiat has the 500e, but he quickly squashes with the fact that Fiat only builds the 500e to satisfy California's zero-emissions-vehicle mandate and that they lose up to $10,000 per unit sold.

Marchionne isn't just being an old-school car dude, either, as he is actually quite fond of autonomous-driving tech and feels it can be profitable. Obviously, at this point, adding advanced auto steering and adaptive cruise to cars to make them autonomous is cheaper than swapping out an entire powertrain for electric, but this will likely change as EV tech gains steam and costs fall.

For those interested in FCA's very own compliance car, the 500e, there are amazing deals on it right now. Qualified buyers can pick up the 2016 500e on a 36-month lease for just $179 per month with $1,999 due at signing. This is by far one of the best lease deals available in the country right now. What’s more, certain states are offering clean-air rebates on the 500e, leading to even more aggressive pricing.

, Automotive Editor

Justin Cupler has specialized as an automotive writer since 2009 and has been published in multiple websites and online magazines. In addition to contributing to CarsDirect, Justin also hosts a web-series car-review show and dabbles in the world of personal-finance writing.

His specialty is in the high-performance realm, but he has a deep love and understanding for all things automotive. Before diving into the world of writing, Justin was an automotive technician and manager for six years and spent the majority of his younger life tinkering with classic muscle cars.

Follow On: Twitter

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