Fiat CEO: electric vehicle push will yield "sub-optimal results"

Speaking at last week's Management Briefing Seminars in Traverse City, MI, Fiat chief executive officer Sergio Marchionne hinted at the possibility of stepping down from the position of Chrysler CEO in 2015 or 2016. Additionally, Marchionne stated Chrysler should have no problem adjusting its vehicle lineup to meet stricter fuel economy requirements, but says the automaker won't simply turn to electric vehicles to find the solution.
Marchionne says over-emphasizing electric vehicles is a mistake and claims that large-scale electrification is "cost prohibitive." He's seen the industry put too much energy into a single alternative before:

Now that hydrogen has fallen out of fashion, it is electricity's turn to be viewed as a panacea. Judging from the recent debate, particularly in Europe, there is a risk that regulatory focus will shift to this being the sole technological solution. But if regulators focus on promoting this solution alone, the outcome is absolutely predictable: capital overspend and sub-optimal results.

Marchionne is walking the line for a balanced approach, one that addresses multiple forms of advanced technologies. That is what's needed to hit the 54.5-miles-per-gallon mark by 2025, he says. And this is why they pay him the big bucks.

[Source: Auto Observer]