Sergio Marchionne, C.E.O. of Chrysler/Fiat, made his opinion known last week when he said, “The economics of EVs simply don’t work.” Referring to the electric version of the Fiat 500 that Chrysler could start selling next year, he commented, “We will lose over $10,000 per unit despite the retail price being three times higher.” Apparently, that means selling the diminutive electric Fiat 500 for more than $40,000. That will place Chrysler alongside Coda Sedan, Think City, Volvo 30 Electric and Smart ED, all of which will be selling electric cars at prices beyond what the market indicates is reasonable—mostly because these companies lack the deep pockets and/or the commitment to withstand a sustained period of heavy losses.
