The huge loss the Chrysler group may have to suffer on the production of its battery powered Fiat 500 BEV (Battery Electric Vehicle) has turned out to be a concern. Even after the retail price being three times higher, the company is set for a losing battle.
However, this financial imbalance would not affect the automaker from launching the Chrysler-built electric minicar in the United States in 2012. The company plans to minimize the financial hit by launching a low volume of the electric 500.
The 500BEV concept was showcased at the Detroit Auto Show in January 2010. While the gas powered variant is expected to cost around $15000, the battery model would cost around $32,000. More than half the price is for the battery that would run the minicar. Fiat CEO Sergio Marchionne has been quoted as saying that the company expects to lose $10,000 (€7,065 / £6,159) on every 500 EV they produce.
However, this may not be seen by many as a concern, but an added gain in respect to the company’s carbon emission values. The launch of the EVs would control the fuel consumption and cut down the Fiat groups Co2 levels.
The pivotal reason for the company to launch an EV is to uplift its chances to attain an electric mobility expertise that will lead to an enhancement on its future gasoline / electric hybrids. The company also expects a loss in its 500 EV models due to be made from the Mexico Plant.
The launch of this model is expected to happen in the next two years – most probably by 2013. As Fiat has a cynical attitude on the future of EVs, Renault SA and Nissan Motor Co are joining hands and foreseeing a blooming future. Both these companies have mutually invested 4 billion Euros to research and undertake the manufacture of EVs.