Chrysler all electric car plans terminated by Fiat

Posted on Wednesday, 11 November 2009 , 19:11:28 byEmil

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Chrysler all electric car plans terminated by Fiat

According to a report done by the Reuters news agency, Fiat has terminated the Envi division of Chrysler as well as the development of the test fleet for which it had received the government grand, as part of the five year business plan to revitalize the American automaker announced by Sergio Marchionne, the new CEO. Let`s remember what happened in the last year with Chrysler .

Some twelve months ago, the Envi (short for environmental) division created by the Chrysler Group had unveiled a series of electric cars based on models that were already in production (non-electric ones). In the next couple of months, Chrysler went in and out of bankruptcy before sealing a deal with the Fiat Group who appointed Sergio Marchionne as the new CEO. About three months ago Chrysler secured a 73 million grant from the Obama administration for the manufacturing of 220 plug-in hybrid and electric pickup trucks and minivans.

Nick Cappa, spokesman of Chrysler, stated for Reuters that ``Envi, which was reponsable for the EV range, will be absorbed in the normal vehicle development program and its former chief Lou Rhodes will head an electric car division for both Fiat and Chrylser``.

Sergio Marchionne, CEO of both Fiat and Chrysler, has stated that ``For the time being and with the current technology available, I do not believe much in EVs and I think that electric cars would represent just one or two per cent of Chrysler`s sales by 2014``. He continued by saying that ``Until the battery storage gets resolved, I think that electric vehicles are going to struggle``.

It will be very interesting to see what happens with the 73 million dollar grant from the Obama administration and how well will the US Government receive this news.