After Bankruptcy, Chrysler Puts the Brakes on Electric Cars
Automaker Chrysler is disbanding a group of engineers focused on creating electric cars, according the USA Today. Chrysler had announced last year that its three new electric models would be available in 2010.
Chrysler had touted its electric lines as part of its argument to receive federal bailout funding. Chrysler received a $4 billion emergency loan from the government in early 2009, including $70 million in grants from the U.S. Department of Energy to develop hybrid vehicles.
Chrysler filed bankruptcy in April, but the procedure was postponed by a Supreme Court case regarding Italian automaker Fiat’s attempt to acquire Chrysler.
The divisions researching electric cars was announced by Fiat CEO Sergio Marchionne as part of Chrysler’s five-year strategy.
Contrary to Chrylser’s original goals, Marchionne announced electrics will only make up 1% or 2% of Fiat sales by 2014, according to the USA Today article.
