“Fiat Chrysler CEO Sergio Marchionne told the Brookings Institution audience in Washington, DC regarding his company’s 500e EV: ‘I hope you don’t buy it, because every time I sell one it costs me $14,000.’ The reason the 500e exists is to meet zero-emission rules in California and elsewhere that might impose similar mandates. The company’s plan is to sell the minimum number of EVs it is required by law to sell, at whatever financial loss the company must bear, and then not to sell one more. Marchionne also said that if automakers are forced to suffer losses on EVs in order to satisfy political policies, then the companies will be back in Washington asking for new bailouts.”
Nissan (NSANY-OTC), the manufacturer of the LEAF electric vehicle (EV) has been the number one seller in the U.S. …
“It was somewhat disconcerting to hear about the economic challenges from NGV fleet operators. In an interview [one] said: ‘Right now, we’re doing it solely for sustainability. We’re not saving any money. I’m glad to hear we’re not the only one to struggle with fuel mileage’.”
Several weeks ago, the Natural Gas Vehicle USA Conference was held in Houston, Texas. The promise of the industry was discussed in light of the economic challenge facing the fuel’s acceptance for transportation.
There are a handful of vehicles in Houston powered by compressed natural gas. Their owners, many of whom are affiliated with the natural gas or energy industries, talked about the benefits of their cars.
However, they are often forced to acknowledge the challenges that come with owning a natural gas vehicle (NGV), which includes the loss of significant storage space in the vehicle due to the need for a large fuel tank. …