General Motors’ biggest story in recent years is two-fold. The automaker has invested copious amounts of cash in a new electric-car architecture that will underpin 20 new vehicles by 2023. On the other hand, GM has also dumped a lot of money and resources into Cruise Automation and its self-driving car program.
Are these big bets on the future warranted? Fiat-Chrysler Automobiles CEO Sergio Marchionne doesn’t think so.
He spoke candidly at the 2018 North American International Auto Show on electrification and self-driving programs and told The Detroit News that it’s not the most pragmatic path.
“I don’t know of a [carmaker] that is making money selling electric vehicles unless you are selling them at the very, very high end of the spectrum,” the FCA CEO said at a press conference. “Whenever we end up going to auto shows, the intensity with which we make these proclamations goes up exponentially.”
His strategy is to remain “technology neutral” and only invest in an area when mandated, such as an effort to meet rising fuel economy standards. This strategy is likely best on display with the 2019 Ram 1500, which includes a 48-volt mild-hybrid system to boost efficiency.
Meanwhile, we know GM has plenty of electrified vehicles in the pipeline. Whether GM’s vision pans out remains to be seen.
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Sounds like what the CEO of a company that doesn’t have the resources to invest in electric vehicles would say.
The old game of deflection from what you lack.
In other words.
We are late and dollar short to the party and will blame others for jumping the gun.
Sergio Marchionne doesn’t want to waste the resources because he assumes he’ll merge with another automaker…He most recently spoke about a GM merger last spring and even sent an email Mary Barra in 2015…
http://gmauthority.com/blog/2015/05/fca-ceo-marchionne-emailed-gm-ceo-barra-about-merger-and-consolidation/
I know FCA lacks the resources big time but I believe there is some truth behind his words….
Once selfdriving autonomy becomes mainstream I’m sure there will be software radars lasers etc available from a supplier bases. As is with a lot of components on cars now brembo recaro Allison Bose and on and on
There are defnitly huge advantages developing your own tech as you control everything but the R&D on this stuff is ridiculous
Look at cell phones now they either run on android or IOS companies like RIM couldn’t keep up and are basically dead and have a phone themselves that runs on android
Their product line is outdated and their sales are taking a dive in the last few months. They are very much at risk if fuel prices move up.
Infrastructure will determine whether this grand idea to be pure as the driven snow is a success or the BIGGEST failure since the Pontiac Aztek because countries have a 2-step infrastructure need to adopt ZEV as countries need to upgrade their power grid to support the millions of ZEV and then they will rip up streets to install recharging stalls so it’s possible to recharge a ZEV almost anywhere as far as price goes, GM’s Michael Simcoe said of how chemical formulation for batteries continue to improve which will allow future batteries to be smaller while feature increase capacity at lower costs which will lower the price of future ZEV.
He’s been right before and is right about most electric cars not making money. I just don’t see a big shift away from normal ICE cars and trucks as soon as they are predicting. As far as self driving cars, looking at the responses and talking to a load of car enthusiasts it is not something most people want or at least until they have years to work all the bugs out. And there are lots of bugs. The current market is all about the trucks and SUV’s and mild electrification technology. That should continue for several years with advances and refinements unless a major shakeup happens with oil prices or a huge breath through in battery tech occurs.
What bugs? GM’s most reliable car is the Bolt. BTW, everyone I know is looking forward to buying an electric including myself.
Not were I live. When you factor in the use of a part of your range to run the heater and fan to move the heat, the excitement dims! In addition, when they need to fire up all of those coal fired power plants to keep the grid energized, we will see how Zero, zero really is!
In 4-5 years when almost all buyers want a electric vehicle and high end buyers want autonomous FCA will be standing there with nothing to offer.
He is not standing on the sidelines because he wants to, they can’t reinvest.
Sergio does not care about the long game. It’s been proven time and time he wants to bulk up and cash out.
AutoNews just had an editorial on the dead end that electric cars represent. Electric cars have been around since the beginning of the auto industry and the story is always the same – not enough stored energy. Musk sells his story to a world that wants to believe and therefore it has become reality.
I don’t think automakers are on route to replace combustion with electric motors. That will not happen while we’re still alive, it might not even happen at all. What GM is doing, for example, is diversifying their portfolio and preparing for times when gas prices spike up again. As soon as that happens there will be an automatic shift towards hybrids & electric cars. We’ve seen it once not long time ago. Quite frankly, that short period of $5/gal gave momentum towards electrification. I think ICE and Es can coexist.
China has mandated that all (100%) of new cars sold must be electric by 2030 and so has India. That represents currently 38% of the population of the planet (vs 4.2% for the US) and many other countries are following. The Chinese auto market is getting close to double the sales numbers of the US. The Chinese Communist Party has mandated that China will be the world leader in renewable energy and electric cars. Trump is re-opening coal mines and removing environmental protection. Is the horse and buggy next?
Electric cars will be shoved down your throat weather you like it or not.
It is proposed. Yeah we will need the coal when everyone get’s home at six and plugs in! Reality has a way of getting in the way.
Yeah I know, some won’t be satisfied until we are back in the stone age. Yet none of these same people are parking their jet aircraft!
China and India still have their work cut out for them – China’s the world’s biggest coal producer, and coal importer. (India’s #3 on imports …) – EV technology will help, but that’s a lot of coal …
Odd thing to say, considering FCA sells the excellent Pacifica PHEV…which was not “invested in when mandated”…