Monday 12 January 2009

Chrysler Plans Electric Car Push in 2010

By ALEX P. KELLOGG and NEAL E. BOUDETTE
DETROIT -- In a bid to make a splash at the Detroit auto show, Chrysler LLC said it expects to start producing an electric car in 2010.

The company, however, revealed few details that normally come with such announcements, such as what type of vehicle it will make – or its name.
"We're not allowed to say," said Todd Goyer, a company spokesman.
In a statement released ahead of the Detroit show, the auto maker said it will unveil a new concept for a possible future electric vehicle – a battery-powered version of its Jeep Patriot, a compact sports-utility vehicle. It will also display three electric-vehicle concepts it first shown in public in September. Those included electric versions of its Chrysler Town & Country minivan and Jeep Wrangler, and the Dodge Circuit, an two-seat sports car.
Chrysler aims to have four electric vehicles in the market by 2013, the company's statement said. A few weeks ago, Chrysler executives told dealers it plans to sell 500,000 electric vehicles by 2013.
Chrysler needs a dose of good news right now. Sales plunged last year, falling 53% in December alone. The company was close to running out of money before it got $4 billion in loans from the federal government.
The company plans to launch a new Jeep Grand Cherokee in late 2009 or 2010, but has few other new models set to follow. Chrysler slowed product development to conserve cash, people familiar with the matter said.
That stands in contrast to recent years, when it tried to drive sales by launching a steady stream of new vehicles.
Chrysler has formed a special development group, called ENVI, to work with partners to produce electric vehicles. It assembled a working prototype of the Dodge Circuit sports car by using major components produced by outsiders, such as an underbody made by Lotus and batteries from A123 Systems Inc. The Circuit runs on battery power alone and is supposed to run for up to 200 miles before needing a recharge.
Chrysler's electric vehicles "will allow consumers to move away from their reliance on fuel stations and traditional maintenance," Lou Rhodes, president of ENVI, said in a statement, "and instead enjoy a new, more socially responsible level of performance."
Write to Alex P. Kellogg at alex.kellogg@wsj.com and Neal E. Boudette at neal.boudette@wsj.com