It's very rare for the vendor of a high-end product to publicly tell his customers not to buy a certain product of his without taking the product off the market himself.
This is what happened recently when Fiat Chrysler Automobiles chief executive Sergio Marchionne told a group of people in Washington DC to do him a favor and to not purchase his company's $32,300Fiat 500e electric car.
“I hope you don’t buy it because every time I sell one it costs me $14,000,” Marchionnesaid. “I’m honest enough to tell you that.”
The question is that why can't even such a pricey car return a profit, but more importantly, if it is operating at a loss, then why can't Marchionne just stop manufacturing the vehicle. The answer to that question lies with the Obamaadministration whichhas taken it upon itself to boost the country's 'quest to achieve energy independence and bring more fuel efficient vehicles to American families.'
It means that electric car manufacturers are under orders from the government to make a certain number of Zero-emissions vehicles no matter how high the cost is and what it does to their profitability. As a result, most of the companies making these electric cars are actually losing money on sale. The only exception being the Tesla Model S- but then its base price of $105,400 per unitis almost three times than that of Fiat 500e.
While concerns for pollution and environmental impact are positive measures, the Obama administration must also review what effect their stringent policies are causing the corporate world. After all, this is the same Chrysler group that needed a government bailout in 2009 after succumbing to its financial crisis, and no one wants to see a repeat of that.