Chrysler submits $448m plan to build electric vehicles
Chrysler Town & Country EV - Click above for a high-res gallery
Chrysler has submitted a series of plans to the U.S. Department of Energy intended to speed up the development of plug-in hybrids and fully electric cars and trucks under the DOE's Transportation Electrification Initiative and Electric Drive Vehicle Battery and Component Manufacturing Initiatives. Under the terms of these initiatives, Chrysler and the DOE would each pay half of a total investment of $448 million.
If approved, Chrysler says it will build a new-vehicle electrification technology and manufacturing center at an unnamed location in Michigan that would have the capacity to produce 20,000 vehicles per year. The initial programs would focus on building 100 plug-in hybrid versions of the Dodge Ram pickup truck along with 100 plug-in hybrid Chrysler Town & Country minivans. Further, 165 fully electric Town & Country cargo vans would be used by the U.S. Postal Service for daily mail service.
We'd be remiss if we didn't mention that today is also the day that Chrysler bankruptcy lawyers plan to file a motion to sell all of the automaker's best assets to the so-called New Chrysler group, which will likely be headed by Fiat CEO Sergio Marchionne. We can only assume these PHEV and EV programs would be lumped in with the rest of the good stuff.
Gallery: 2011 Chrysler EVs
Gallery: Chrysler EV USPS mini-van
[Source: Chrysler]
PRESS RELEASE:
Chrysler LLC Submits $448 Million Plan to the U.S. Department of Energy for the Rapid Development and Manufacturing of Electrified Vehicles
* Chrysler LLC submits three proposals, totaling $448 million, for two Department of Energy (DOE) initiatives aimed at rapid vehicle electrification - The Transportation Electrification Initiative and Electric Drive Vehicle Battery and Component Manufacturing Initiative
* The 50/50 cost-share opportunity demonstrates how Chrysler LLC, its partners and the DOE can work together to promote technological innovation and energy independence in the United States
* Proposed vehicles to include Dodge Ram 1500 Plug-in Hybrid-electric Vehicles (PHEV), Chrysler Town & Country PHEVs and Chrysler Town & Country Electric Vehicles (EV)
Auburn Hills, Mich., May 26, 2009 - Chrysler LLC today announced the company has submitted three proposals outlining a $448-million plan to the U.S. Department of Energy (DOE) in order to rapidly bring Electric Vehicles (EV) and Plug-in Hybrid-electric Vehicles (PHEV) to market.
Chrysler LLC applied for two initiatives established by the DOE-the Electric Drive Vehicle Battery and Component Manufacturing Initiative and the Transportation Electrification Initiative. Both are designed to speed up development, demonstration, evaluation and manufacturing of EVs and PHEVs. The programs represent a 50/50 cost-share opportunity with $224 million from Chrysler LLC and its partners, combined with a matching $224 million from the DOE. These funds will accelerate the market introduction and penetration of advanced powertrains.
"These initiatives represent how government and the automotive industry are answering the challenge of reaching common goals and demonstrate how rapidly this type of advanced technology can be brought to market in a collaborative environment," said John Bozzella, Senior Vice President-External Affairs and Public Policy, Chrysler LLC. "Without U.S. innovation and production capacity, we will simply trade batteries for oil in the pursuit of transportation energy."
If approved, Chrysler LLC plans to use funds to build a demonstration fleet of PHEVs and EVs, as well as create a new-vehicle electrification technology and manufacturing center located in Michigan. The proposal will enable the production of commercially viable products in a shorter time frame. Combined, Chrysler LLC's proposal will stimulate the economy and help the company achieve its leadership goals in electrified-vehicle development and production.
The Transportation Electrification Initiative
Chrysler LLC's $365-million submission for the Transportation Electrification Initiative intends to establish a nationwide demonstration fleet of more than 365 test-fleet vehicles for use by select customers and partners. The Chrysler Town & Country and Dodge Ram 1500 are popular models in their respective segments and as PHEVs can achieve substantial greenhouse-gas reduction. To ensure a robust assessment, Chrysler will demonstrate 100 Chrysler Town & Country PHEV minivans and 100 Dodge Ram PHEV pickup trucks across a range of drive cycles and consumer-usage patterns in diverse geographies and climates throughout the United States. The company has established more than a dozen partnerships with city and local governments, research and development authorities, utility companies and universities to test the PHEVs.
In addition, through a partnership between Chrysler LLC's ENVI group and the U.S. Postal Service (USPS), Chrysler LLC will deliver 165 Chrysler Town & Country EV cargo minivans for daily mail service in four regions throughout the country. ENVI has created numerous partnerships with energy providers and utility companies in order to develop an electric-vehicle charging infrastructure that will efficiently service its electric-vehicle test fleet.
The Electric Drive Vehicle Battery and Component Manufacturing Initiative
Within the Electric Drive Vehicle Battery and Component Manufacturing Initiative, Chrysler LLC plans to use as much as $83 million to build a new vehicle electrification technology and manufacturing center in Michigan. This new facility would house development, testing and electric-drive component manufacturing in addition to final assembly of EVs and Range-extended Electric Vehicles (ReEVs). The complex would be functional by 2010 and produce more than 20,000 units per year.
"These proposals present a win-win situation for Chrysler and, most importantly, our customers," said Frank Klegon-Executive Vice President, Product Development, Chrysler LLC. "This plan will accelerate our efforts to develop and manufacture electric and plug-in hybrid-electric vehicles, which will reduce the amount of time it will take to get these vehicles on the road."
Chrysler LLC would utilize both DOE programs as first steps toward the commercialization of "no compromise" electrified vehicle technologies beyond Hybrid-electric Vehicle (HEV) applications currently on the road.
Last month, ENVI, Chrysler LLC's in-house electric vehicle organization, made multiple announcements aimed at accelerating the market introduction of electric-drive vehicles. The company created a lithium-ion battery production partnership with U.S. based A123Systems and facilitated a new lithium-ion battery manufacturing plant in Southeastern Michigan-a joint program with A123Systems and the Michigan Economic Development Corporation. Chrysler also announced its plans to address the future needs of fleet customers, such as the U.S. Postal Service, with a pure-electric Chrysler Town & Country EV Cargo minivan.
About Chrysler LLC
Chrysler LLC, headquartered in Auburn Hills, Mich., produces Chrysler, Jeep®, Dodge and Mopar® brand vehicles and products. Total sales worldwide in 2008 were 2 million vehicles. Outside of North America, 2008 was the second-best sales year in the last decade and the third-best ever for Chrysler LLC International.
Chrysler LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300 and Town & Country, Jeep Wrangler and Grand Cherokee and Dodge Challenger and Ram. Reinforcing a commitment to bring to market a broad array of advanced electric vehicles across all of its brands, Chrysler has introduced five electric-drive vehicle prototypes and one electric-drive vehicle concept since the fall of 2008. At least one of these vehicles will be produced in 2010 for consumers in North American markets, followed by production for European markets.
The Chrysler Foundation, the company's philanthropic arm, annually supports hundreds of charitable organizations in the United States and throughout the world. In 2008, the Foundation gave approximately $21 million in charitable donations.
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Reader Comments (Page 1 of 2)
BoxerFanatic 12:49PM (5/27/2009)
If this were going to work, would they not, and other people, as well, HAVE TRIED THIS BEFORE???
If this were viable, and achievable, there would be a profit margin in it, and people would be churning them out, and makin' bank on it.
This is hail mary pass time, and this is getting desperate and pathetic.
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zamafir 1:16PM (5/27/2009)
in other news, i'll build a space ship for $448m...
you're right, it's about as sad as it gets. Well no, the saddest are the customers who actually thought they'd be honoring life time warranties and didn’t understand that such offers are the greatest of hail mary attempts.
PJ 1:27PM (5/27/2009)
On the other hand, what's (potentially) bad for Chrysler is good for everyone else, as this will only help expand the existing infrastructure and supplier base for other EV ventures. The UC system in California is still running the RAV4 EVs from 1997-2003; it's about time somebody else stepped up.
With Chrysler set to emerge from bankruptcy as a Fiat-owned company next week, though, I'm hoping Fiat approves ENVI-related spending on the side, and that this won't hurt Chrysler at all. Depends on how far-sighted Fiat's business plan is, which I really have no sense of.
polo 6:30PM (5/27/2009)
"If this were viable, and achievable, there would be a profit margin
in it, and people would be churning them out, and makin' bank on it."
Don't read the news much? I bet you still have floppy disks hanging
around your computer desk. People like you are waaaay behind the
curve.
-Nissan, Mitsubishi, Chrysler, GM and Ford have already committed
plans for plugins by 2012, with 1st year production figures from
10K-30K first year, for each.
-Saturn (whose EVs will now to GMC), BMW, Toyota, Chevy, Audi,
Hyundai, Tesla, BYD, Mercedes and Volkswagen have announced for plans
for plug-ins or plugin-hybrids for 2011-2013.
-Detriot Electric is planning 30K EVs for the US by 2011 and another
supplier, Magna, is marketing their EV around to the automakers (Ford
has already signed on) and want it produced in high quantities to
lower the price.
There will be at least 70K full EVs on the US market by 2012, and at
least double that in plug-in hybrids by 2013-14....with production
for all those vehicles doubling or tripling for the next couple years
after that. Oh, and all these production figures were announced BEFORE
the new CAFE standards. EVs will becoming the new golden child of the
automakers for their ability to exponentially raise fleet mpg
averages and likewise decrease carbon emmissions.
If their were no demand, or profit in EVs....then why is every major
automaker (excluding Honda) now committing to pr announcing major EV
rollouts? Obviously Chrysler wants to do this because this product is
the new "it", and any automaker that does not have a major EV program
will be facing bankruptcy in the near or not-to-distant future.
Sea Urchin 12:52PM (5/27/2009)
I think this entire program is about $2.2 billion, which is sad, because if you want to see USA dominate battery tech we need more investments. Instead of spending money on ACORNS and family planning in other countries we need to beef up this program.
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polo 6:34PM (5/27/2009)
ACORN gets the poor involved in the political process (including voter registration), and does alot of community work where its needed. We can continue to do that, and also give automakers the tools they need be efficient and competitive.
Frank 8:39AM (5/28/2009)
I have no problem with getting people involved in the political process. I just have a problem with voter registration fraud.
XGM 12:54PM (5/27/2009)
Why do I see a exhaust pipe on a EV ? If it has a engine wouldn't that make it a hybrid ?
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MemphisNET 1:04PM (5/27/2009)
The ICE still needs an exhaust. This is the same as the Volt --- electric motor is the only physical connection to the wheels, ICE recharges the battery pack.
XGM 1:32PM (5/27/2009)
Oh I was under the impression it was a full on electric car, but I just read it again and noticed these are Extended Range EV's which would explain everything.
patrick clement 1:00AM (5/29/2009)
We need to stop this electric car crap, it is a fad just like Global Warming, Obama, not drilling here. There is no pride in ownership in a car that has a souless electric motor. The piston engine or turbine whatever is IC, is the heart and soul of a car not a trunk full of batteries.
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Tony C 1:22PM (5/27/2009)
So much for Stow'N'Go!
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mk3 1:23PM (5/27/2009)
I hope this doesn't go through. Why does Chrysler's team deserve this money? Let's find some better more efficient teams to invest in.
On the plus side for Chrysler, at least the EV will not need an automatic transmission ; )
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Sea Urchin 1:28PM (5/27/2009)
I am afraid that politics will be involved, Kentucky wants to become a hot bed of research in he field, they spend a TON of money on that already, so do Michigan, Massachusetts and California. Kentucky is a "RED" state so i think Obama will not give them a dime for research. But you can bet that Michigan will get some.
Len_A 11:38PM (5/27/2009)
@Sea Urchin - Politics has zip to do with it. Daimler already made a decision to locate their hybrid and EV research team in the Southeast Michigan area, well before their investment in Tesla, for the same big reason that most similar research facilities are locating here. Yazacki North America's headquarters and engineering center is in Canton, MI (Off I-275, about ten minutes from where I live) and they have nearly 100% of the hybrid and EV vehicle high voltage cable business in North America. Hybrids and EV's are still such a small number of total vehicle production, and the high voltage cables that connect the battery pack to the electric motor is such a specialized business, that right now it's nearly a single source supplier situation if you hope to get into production in the next three years. There-fore, engineering and development personnel have to interface with Yazacki North America's engineers, and they're located here, not in Kentucky.
BigTeebo 1:28PM (5/27/2009)
Welcome to the EV party Chrysler. Fashionably late?
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dakota 1:34PM (5/27/2009)
I guess you don't remember the TEVan from 1992, or EPIC do you?
http://www.allpar.com/corporate/electric-cars.html
Get a clue.
John 1:43PM (5/27/2009)
Hardly late. Chrysler has been in the EV business far longer than just about any other manufacturer around.
Start with the GEM program, which is owned by Chrysler and is one of the more successful all EV programs.
Then consider that Chrysler had the TEVan back in 1993. After the TEVan was in production, Chrysler built a 1992 concept minivan, called EPIC, another electric vehicle though admittedly only a concept. However, the production version of the ePIC was introduced in July 1997, and leased to government and utility fleets.
Then if you would like to get completely ridiculous we could talk about in 1977 when Chrysler announced a 4-passenger electric city car and published details and photos. Though never actually put into production the cars were bought up by some researchers etc and studied.
Chrysler has always been in the EV game, so maybe it's you who are a little late to the party....
John 1:46PM (5/27/2009)
Damnit! I was beaten to the punch. Just read the link dakota posted.
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Henry 2:04PM (5/27/2009)
Chrysler would be better off going to Bright and building the IDEA for them.
http://www.autoblog.com/2009/04/21/bright-idea-comes-to-washington-dc-as-a-100-mpg-plug-in-hybrid/
Despite all the money spent to bring in high priced executives from other companies have not brought in a clear vision or leadership for Chrysler.
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