Fiat Launches New 500 E; Don’t Expect $14,000 Loss With Every Sale.
“I hope you don’t buy it”
When Fiat first launched an electric version of the little 500 city car, the late CEO Sergio Marchionne urged anyone wanting to buy one to please go away because every sale cost the company $14,000.
“I hope you don’t buy it (a 500E) because every time I sell one it costs me $14,000,” he said to an audience at the Brookings Institution in Washington in 2014.
Fiat launched its new electric version of the 500 in Milan Monday. Fiat Chrysler Automobiles wasn’t talking about how much money it might make now on the car, but in Italy, there are huge incentives to buy battery electric vehicles (BEV). Buyers receive €6,000 ($7,100) to buy a BEV, plus €4,000 ($4,700) if they scrap an old car.
Despite the massive electric incentives, the base-line 500E 24kWh with claimed range of 115 miles goes for €19,900 ($23,600) after tax. A more expensive version (200 miles) and 42 kWh goes for €23,700 ($28,100). And the top of the range (also 200 miles and 42 kWh ) costs €25,200 ($29,900).
Don’t forget that these claimed ranges might work well around town, but as soon as you hit the highway divide it by at least two.
The new 500 will be sold in Europe only initially from early next year. Sales in the U.S. could happen if demand is there, FCA said.
Fiat gave no details of production or sales goals.
FCA, expected to merge with Groupe PSA in 2021. The merged companies will be called Stellantis.
Marchionne died in 2018, aged 66.