Marchionne: Fiat could build “Model 3 fighter” in one year
CEO of Fiat Chrysler, Sergio Marchionne, recently raised doubts about whether Tesla’s Model 3 will actually be profitable, stating: “I am not surprised by the high number of reservations but you have then to build and deliver them and also be profitable.” So it would seem he is sceptical about whether Tesla will get the car to market on time or that it can actually make a profit on the Model 3 when it does. He then went one step further, claiming that if Tesla “can show me that the car will be profitable at that price, I will copy the formula, add the Italian design flair, and get it to the market within 12 months.” Marchionne has never been much of an EV fan; he even begged people not to buy Fiat’s electric 500e “compliance car” because his company lost $14k on each sale. Hence he hasno concerns about waiting to see if the Model 3 is profitable before launching a competitor, stating: “better late (to the market) than sorry.”

AMSTERDAM – Fiat Chrysler Automobiles could build a rival to Tesla's Model 3 compact electric car with Italian flair if the business case makes sense, FCA CEO Sergio Marchionne said.

Tesla unveiled the $35,000 Model 3 earlier this month. Company officials have said that advanced orders are approaching 400,000, according to various media reports.

"I'm am not surprised by the high number of reservations but you have then to build and deliver them and also be profitable," Marchionne said on the sidelines on FCA's annual meeting in Amsterdam on Friday.

Marchionne said he does not see a way to make the Model 3 profitable at a $35,000 retail price.

He said that if Tesla CEO Elon Musk "can show me that the car will be profitable at that price, I will copy the formula, add the Italian design flair and get it to the market within 12 months."

Asked if he thinks FCA is late in the race to electrification, Marchionne replied: “better late than sorry.”

FCA sells a few thousand units a year of the 500e, an electric version of its 500 minicar, in selected U.S. states. The car is not offered in Europe or other global markets.