“The full environmental impact of electric cars needs to be analyzed more thoroughly before we can determine them to be more innocuous than internal combustion engines.
I think that if you don’t do the full analysis of what the origin of the electrical power is, where it comes from, how you get batteries into these cars, what the cost is in terms of CO2 and the environment, I think the analysis that we are going to save the planet with electric cars is nonsense.” This came from chairman and CEO of Fiat Chrysler Automobiles (FCA) and chairman of Maserati, Sergio Marchionne, in an interview with CNBC this week.
He went on to say, “If the base of that electrical production is nuclear, then I have zero issue. We’ll all be doing the right thing. But you are embracing nuclear power as the solution to your problems. If you are relying on fossil fuels to produce it, I think the issue is much bigger.”
Marchionne resistance
Marchionne is also known to have been pushing back on the electrification trend when he urged consumers not to buy the Fiat 500e electric car. He said FCA lost thousands of dollars, as much as $20,000 (roughly R268,000) on each electric version of the Fiat 500.
Marchionne also brought Tesla into the topic saying that Elon Musk has done a ‘phenomenal job’ at marketing his all-electric vehicles, but he is “unconvinced of an economic viability of the model that he’s pitching.” He went on to say that the costs of the technology and batteries needed to produce battery-electric cars need to come down. Then only can a workable business case be made. To Marchionne, traditional hybrid cars and plug-ins will carry the industry.
Meanwhile, Tesla has proven that electric cars can be/and are highly desirable automobiles. And even though electric cars are not profitable as yet, most of the big manufacturers are jumping on board. Several already have some kind of electric vehicle or plans/partnerships to develop one in the coming years.
Electric cars don’t fit in with Ferrari
While it may not be soon, it’s likely that Ferrari may join the electric train in the future if pressure from governments on carbon emissions continue. However, Ferrari executives and fans have expressed that electric cars do not fit in with the company’s brand image.
Sergio Marchionne with GM CEO Mary Barra and former Ford CEO Mark Fields
Governments that have already expressed notions of banning cars with internal combustion engines include China, India, France, Germany and the UK. This may start as early as 2030. Top executives within BMW, Ford, General Motors, Honda, Mercedes-Benz, Toyota, and Volkswagen have already confirmed their transition to electric motors. This is to take place within the next 15 years.
“Governments should stop forcing electric cars on people”. Marchionne believes the speed of this change is only going to make carbon dioxide pollution worse. In his view, electric cars that need charging require electricity. This electricity comes from coal-fired power plants that emit abundant quantities of carbon emissions into the atmosphere. Which then means more electric cars – more emissions.
The Green factor
While he is not wrong, he is, however, overlooking the fact that the world is transitioning to renewable energy. Renewables such as solar and wind power are replacing coal-fired generating stations in considerable numbers. China is said to be installing enormous solar and wind farms around its country.
“The world would be better off if vehicles were powered by natural gas”. Marchionne is throwing himself under a bus because natural gas production also produces a substantial amount of methane emissions. Methane is a more potent greenhouse gas than carbon dioxide.
It’s beginning to spread that Marchionne is “trying his hardest to hold back progress.” Automakers such as these are putting themselves in danger of being left behind or going out of business if they don’t adapt their companies and strategies accordingly.
Watch Marchionne’s remarks here:
Source: CNBC
