May 26, 2017

Losing Money on Every Unit?

osbornesplash2This story is awfully familiar: “The Electric Car’s Same Old Problem.” The quote that sums up the whole problem is from Fiat Chrysler’s Sergio Marchionne, “I hope you don’t buy it because every time I sell one it costs me $14,000.” I keep hearing through unconfirmable sources that Zero has yet to sell a motorcycle for a profit. I hope it isn’t true, but I suspect it is. Things change, but often pioneers take it in the shorts in the early stages. I remember Adam Osborne’s Trump-like claim for how his company was going to make money selling computers, “I lose money on every unit, but make up for it in quantity.”

After the shake-up this week at Ford, mostly over EVs and autonomous vehicle sales, it will be interesting to see if ANYONE makes it to the goal post with an electric car.

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