Fiat CEO scraps Chrysler's EV plans

November 9, 2:42 PMEnergy ExaminerJohn Guerrerio

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No electric vehicles coming out of Chrysler any time soon.
Wikipedia Commons

Earlier this year, when Chrysler sat before Congress and testified about its bankrupt business model, promises were made regarding the advancement of electric vehicles within the company.  Chrysler voiced its commitment to EVs as their main argument for why the US government should hand over some $12.5 billion in bailout money.

Much has changed since then.

Chrysler filed for bankruptcy, their $7.5 billion bailout repayment was forgiven, Fiat came to their rescue, and the restructuring of the company began. 

Recently though, part of Fiat's restructuring plan was the scrapping of the electric vehicle initiative at Chrysler.  Fiat CEO Sergio Marchionne says that EVs will only make up 1-2% of Fiat sales by 2014; he further admits his lack of confidence in the EV industry until new battery developments make EVs more affordable and capable of traveling longer distances.

The "in-house team of electric car development engineers (at Chrysler) had been disbanded in favor of a more traditional organization." (Automotive News)

There are bound to be some repercussions associated with Chrysler's about-face under new Fiat leadership.  As of August of this year, Chrysler had taken nearly $70 million in grants from the US Department of Energy in order to develop hybrid pick-ups and minivans.  By scrapping the EV initiatives of Chrysler, it seems, Fiat has swindled the American taxpayer out of millions of dollars (billions if you count the bailout).