If there is one thing the Fiat Chrysler CEO Sergio Marchionne has been consistent on aside from changing his mind on a number of things is his dislike on electric vehicles.
Speaking to reporters this week at the New York Stock Exchange, Marchionne said there isn't a viable economic model for electric cars.
"We still don't have a viable economic model for delivering an electric car. As much as I like Elon Musk, and he's a good friend and actually he's done a phenomenal job of marketing Telsa, I remain unconvinced of a ... economic viability of the model that he's pitching," said Marchionne.
Marchionne believes the costs for batteries and the various technologies need to come down to make them viable. Otherwise, automakers should focus on developing hybrid and plug-in hybrid powertrains.
"So how do we find a convergence of technology bringing prices of components down and allows us to price accordingly — or we need to navigate through this process in a combined way between combustion and electrification to yield at least a minimum of economic returns that allows for our continuity? The last thing you want is me to be successful selling cars for 24 months and then go bust. That's not a good story. Especially in a place like this which rewards economic success. Let's not sit here and design our own future in the tank. Let's try and do it properly. We will do all the right things. We are investing without making a lot of noise on electrification. We will combine it with combustion to yield the right level of CO2. But we're not betting the bank on going fully electric in the next decade. It won't happen," said Marchionne.
Source: The Street