Fiat pulls the plug on Chrysler hybrid and electric car plans

November 9, 8:22 AMGreen Car ExaminerEvelyn Kanter

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Dodge Circuit concept electric car unveiled at 2009 Detroit Auto Show
Chrysler LLC (pre-Fiat)

There will be no electric car named Chrysler, Dodge or Jeep.  At least for the forseable future.  Chrysler's new owner, Fiat SpA, has pulled the plug on Chrysler's plans to build and market EV  vehicles, and even hybrid vehicles.

The decision by Fiat SEO Sergio Marchionne is a major voltage reduction for Chrysler.  It is also a direct slap in the face of US taxpayers, who gave Chrysler a $12.5 Billion bail-out package, in part to help float Chrysler's plans for its ENVI program to develop and market fuel efficient electric cars.  In addition, the Department of Energy gave Chrysler another $70 million in grants in August for this program.

Will Fiat return the money?  Unlikely.

Fiat's decision kills the Dodge Circuit, a two-seater all electric sports car that Chrysler introduced to great fanfare at the Detroit Auto Show earlier this year.  Chrysler announced in September 2008 that it was developing three EV models, and hoped to get them into production by 2010.  That's not happening now.

Fiat's decision also scraps Chrysler's plan to build and test a fleet of more than 200 hybrid and plug-in electric pick-up trucks and minivans. 

According to GreenTech Media, Fiat's decision has a negative effect on battery-maker A123, which had been contracted to make the batteries for the Chrysler electric car program. 

There is a possibility the new Fiat-Chrysler will pursue electric or hybrid vehicle production, but it is unlikely.  Marcchione doesn't think much of electric cars.  Reuters reports he told reporters and analysts that electric cars would only represent "one to two percent" of Chrysler's sales by 2014.  The implication is that spending millions on R & D just isn't worth it.

So what will Marchionne do with the $70 million he just got from the US Department of Energy to do just that?

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