Italian environment minister Corrado Clini has called out Fiat for failing to jump on the electric vehicle bandwagon but I think this unwarranted.

However, given the general state of the Italian economy, what Fiat has done actually looks like a very reasonable business decision. While most consumers love to say "sure I'd like to buy an EV," that statement is usually followed by a caveat "as long as it doesn't cost more than $X,000 more."

The problem is that the cost differential between an EV and conventional equivalent is usually several times what people are willing to pay. We're still very early in the plug-in vehicle era and it remains to be seen just how truly successful these vehicles will be in the market. The people buying the Volt and Leaf still largely fall into the early-adopter crowd. Sales of both cars were in the 600+ range in January.

Rather than create a whole line of dedicated plug-in vehicles, Ford has gone a different route by designing new platforms with the flexibility to accommodate multiple powertrain configurations. http://fordfusionstory.com/mpg/

Given the need to re-engineer the entire Chrysler lineup in the wake of bankruptcy, Fiat clearly made a strategic decision that is now paying off with rising sales. Those same vehicles are coming to market with better fuel efficiency than the models they replace and this is a trend that will continue with other models as Chrysler aims to meet new CAFE standards.

Once it finishes addressing its near-term product needs, I wouldn't be surprised to eventually see Chrysler follow a similar path to Ford by incorporated new flexibility into future vehicles. That will give them the ability to quickly respond to shifting consumer demand. Ford is obviously in a better position today because both its compact (Focus) and new mid-size (Fusion) platforms already have this capability.

#rechargingthecar #electric #electricvehicles

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Italy Environment Minister:Fiat Missed Electric Car Opportunity – WSJ.com
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