Cheap Gas Puts The Squeeze On Hybrids And Evs

Earlier this year, Fiat Chrysler boss Sergio Marchionne joked that he hoped consumers wouldn’t buy the Fiat 500e (e for electric), because the company loses $14,000 on each one, given the cost of the technology inside. That shows the bind carmakers find themselves in these days: Americans have been buying more green cars of all types, but as gas prices plummet, companies have resorted to steep discounts to keep sales from stalling. Automakers sold about 90,000 hybrid electrics, plug-in hybrid electrics and battery-powered electrics through September, a 30% increase over 2013 in what will likely be a record year.

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