Fiat can do it in 12!

[danbucks]

Fiat Chrysler CEO says can build Tesla Model 3 rival if makes business sense

Marchionne said he did not understand how the Model 3, Tesla's first mass-market car, could be sold for 35,000 euros ($39,600) at a profit.

"If he can show me that it can be done, I will do it as well, copy him, add Italian style to it and put it on the market within 12 months," he added.


[sprays coffee all over the screen, and everyone else's, while reading]
Oops, sorry about that guys, let me grab a tissue....

 

[geoffreak]

Isn't this basically the point of Tesla? To show that electric cars can be done affordably with a high demand?

That being said I hope many of these existing car companies get judged as incompetent in the court of public opinion for not meeting this demand sooner. >XD

 

[Automaton]

So basically that CEO is short-sighted and not able to come up with his own ideas/plans. Either that or he is just talking trash. Typical obsolete car manufacturer mentality. I really don't see any of the traditional car makers wholeheartedly trying to compete with Tesla. They just aren't interested at this time, so they are going to come up with whatever justifications they have to in order to convince themselves that not competing is the right decision.

 

[TEUNTSLA]

but this does fall in line with Elon's plan, the fact that his patents are open and available to everyone. he wants others to build it, so just wait until the big 5 (BMW, AUDI, FIAT/Chrysler, Toyota & Nissan) come his way begging for help. The first manufacturers to get on board will survive, the others will pay the price. now tie on the fact that Norway, India & the netherlands all have committed to be EV only by 2030.

 

[esk8mw]

It's hilarious to me how little the other automakers have thought this through.

Even if the base 35k trim starts off at low or no margin, how many people get a dead stock unoptioned car? Very few. Add in leather seats, non-solid black paint, autopilot capability and you are already around 40k. Then consider bigger battery, P models etc. and the ASP is around 45-50k. Then look at battery costs. They will only come down in price with technological advances and economies of scale, further increasing margins over time. This stuff is pretty basic. Like, high school levels economics.

The 12 month comment shows how well and truly f'd the traditional automakers are. They seriously do not understand the risk facing them with EVs. Even if you think EVs are of limited use, a fad, whatever (hint: they aren't)--a good business understands risks facing them and takes them seriously. They should have a full contingency plan in place for flipping to serious EV production if the market turns on them, understanding the logistics, time and costs of doing so if needed. A few hours of research would have told him that scaling up battery production alone isn't anywhere near a 12 month job, let alone the tooling, design, engineering, training etc. that goes into every new car. I don't care how much resources you have, some things can't be sped up. 3 years would be a remarkable feat; 12 months is literally impossible.

 

[Canuck]

"If he can show me that it can be done, I will do it as well, copy him, add Italian style to it and put it on the market within 12 months," he added.

Fiat Chrysler is really in trouble if their CEO is so clueless. In order to "copy him" he has to (1) build a battery giga factory to make the most expensive part of the vehicle affordable; and (2) build out a supercharger network so you actually use the car other than around town. He's going to do that and "copy him".... "within 12 months"?! Is he Superman?

I really wish the other car makers were serious about EV's. If they were, we'd see them with concrete plans to build battery factories and charging networks rather than having their CEO's spew such nonsense. The longer they wait, the further they will fall behind. It's sad really since we need them all on board. The statements he made shows how out of touch he is with the future of his own industry. The shareholders should demand his resignation failing which he should be fired.

 

[Automaton]

It's sad really since we need them all on board. The statements he made shows how out of touch he is with the future of his own industry. The shareholders should demand his resignation failing which he should be fired.

We don't really need them on board at all. I'm sure Tesla would be happy to be the sole beneficiary of EV sales as EVs gain in popularity and push out Gas-powered cars in the future. I think Elon has already achieved his goal because Tesla's EVs are already highly desired by the masses. It's just a matter of time now. The fact that other manufacturer's EVs are crap actually helps Tesla now that momentum has shifted toward Tesla's EVs specifically and away from gasoline cars. Ever since the Model S, average car buyers have wanted a Tesla. They just couldn't afford one. At $35k many still won't be able to, but everything is in place and moving in the right direction even without the old car makers' support.

 

[mspohr]

Fiat Chrysler CEO says can build Tesla Model 3 rival if makes business sense

Marchionne said he did not understand how the Model 3, Tesla's first mass-market car, could be sold for 35,000 euros ($39,600) at a profit.

"If he can show me that it can be done, I will do it as well, copy him, add Italian style to it and put it on the market within 12 months," he added.

So... we're waiting... stop whinging and just do it.

 

[vjason]

The first line any CEO who talks about BEVs needs to says is: "We have reached an agreement with Tesla to use their Superchargers, and will join with them to build more. We want to ensure our customers have the freedom to travel anywhere they wish, without fear of battery range. We look forward to partnering with Tesla to continue to expand BEV use around the globe".

Anyone can build a BEV at this point. They may have to pay a premium for their batteries, and the integration of the individual parts won't match that of Tesla, but they can do it. Large automakers have access to significant prototyping and manufacturing facilities that give them advantages over Tesla, even if their engineering process inhibits their innovation.

The problem is they need to either compete on style on price. If Chevy could afford to drop the price of the Bolt by 10K to (try and) sink Tesla they would, and I suspect it would cut into model 3 sales by a bit. I have no problem per se with the way the Bolt looks (internal kludginess aside), but I'm not spending model 3 money to get one.

If Tesla can deliver large numbers of cars expect all large automakers to try and poach the living heck out of their engineers. A few million in extra salary is nothing when you are trying to save your multi-billion dollar business.

 

[ecarfan]

New The first line any CEO who talks about BEVs needs to says is: "We have reached an agreement with Tesla to use their Superchargers, and will join with them to build more. We want to ensure our customers have the freedom to travel anywhere they wish, without fear of battery range. We look forward to partnering with Tesla to continue to expand BEV use around the globe".

Even though that is clearly the best course of action, I do not expect to hear another auto company say anything like those words in my lifetime. Simple human pride prevents them from doing so.

The Fiat CEO is completely delusional.

 

[shokunin]

Isn't this the same guy who told people not to buy his Fiat EV car, since he's losing money on every single one? Reminds me of RIM (blackberry). By the time they figure out the market has changed, it will be too late. They keep thinking they'll just pull parts together and build a car like a ICE, not realizing they need specialized parts and electronics that they've never needed nor developed before for an ICE.

They'll go on to source a battery only to find out it costs them a heck of a lot more than what it costs Tesla.

 

[kort677]

Fiat Chrysler CEO says can build Tesla Model 3 rival if makes business sense

Marchionne said he did not understand how the Model 3, Tesla's first mass-market car, could be sold for 35,000 euros ($39,600) at a profit.

"If he can show me that it can be done, I will do it as well, copy him, add Italian style to it and put it on the market within 12 months," he added.


[sprays coffee all over the screen, and everyone else's, while reading]
Oops, sorry about that guys, let me grab a tissue....

he continued to say that while he(fiat) could he won't build one.

 

[Snowdog]

Marchionne said he did not understand how the Model 3, Tesla's first mass-market car, could be sold for 35,000 euros ($39,600) at a profit.

"If he can show me that it can be done, I will do it as well, copy him, add Italian style to it and put it on the market within 12 months," he added.

Sounds like it he is talking about David Copperfield doing magic. If he would only show me how to do it, I could do magic too...

 

[BluestarE3]

Isn't this the same guy who told people not to buy his Fiat EV car, since he's losing money on every single one?

Yep, the very same guy. But now suddenly he thinks he can build one in 12 months. Nothing but bravado.

 

[stayfocus18]

Idk if this is pathetic or brilliant

 

[Seir]

This is the desired response that Tesla/Elon wants to see. I am very much onboard with the whole master plan approach they have taken, showing the world (and most importantly other auto makers) that EVs will not only work but will be embraced. Big keys include driving range at a reasonable cost AND the infrastructure to allow the freedom of movement that cars have always meant.

Hope to see more of this kind of reaction! No judgement here, if someone wants to pave the way, let 'em and be ready to react.

 

[hoang51]

"If he can show me that it can be done, I will do it as well, copy him, add Italian style to it and put it on the market within 12 months."

Adding Italian style marks up the price to unrealistic levels. GTFO CEO of Fiat/Chrysler. No offense to Italians. Just that Italian styling is overpriced.

 

[esk8mw]

he continued to say that while he(fiat) could he won't build one.

What more needs to be seen as a proof of concept for them such that they are still hesitant to act on their ability to build EVs? Surely they understand that Tesla is already running a highly profitable business (yes, with profits and more plowed back into the company). Surely they can see the demand is there - 400k reservations. And surely he thinks that a large, established automaker like Fiat could easily crush a little upstart like Tesla, right? It seems like they are holding on to the idea that Tesla will be selling these Model 3s at a large loss and will just go bankrupt. Something tells me Tesla has run the numbers on this before jumping headlong into failure. Fiat is screwed if this is really their mentality.

 

[Steepler2k]

I can name that tune in 7 notes!

 

[kablammyman]

Isn't this the same guy who told people not to buy his Fiat EV car, since he's losing money on every single one? Reminds me of RIM (blackberry). By the time they figure out the market has changed, it will be too late. They keep thinking they'll just pull parts together and build a car like a ICE, not realizing they need specialized parts and electronics that they've never needed nor developed before for an ICE.

They'll go on to source a battery only to find out it costs them a heck of a lot more than what it costs Tesla.

not only that, but this:

Fiat Chrysler Chairman Renews Push for Merger With `Big Guys'

so hes not being condescending but, hes literally asking for advice!