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Fiat Is Tired Of losing Money On Its Electric Car

RENEE MONTAGNE, HOST:

And our last word in business news today is a request from the CEO of Fiat Chrysler: Don't buy the Fiat 500e.

STEVE INSKEEP, HOST:

Chief executive Sergio Marchionne says he loses $14,000 every time his company sells that electric car. Even federal tax credits do not make it profitable. Demand simply has not pushed the price of the car high enough to recover the cost.

MONTAGNE: No manufacturer wants to lose money selling a product. But Marchionne says he has little choice. Federal and state mandates - like California's Zero Emission Vehicle Program - push the production of electric automobiles.

INSKEEP: So Marchionne vowed to sell the minimum number he needs in order to comply, and he hopes not one car more.

That's the business news on MORNING EDITION, from NPR News. I'm Steve Inskeep.

MONTAGNE: And I'm Renee Montagne. Transcript provided by NPR, Copyright NPR.

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