Chrysler drops three electric vehicles despite using them to get billions in government bailout cash

[n2doc]

i
If you believed all the talk from Chrysler about how our tax dollars would help finance its fast-track electric-vehicle future, you're in for a big disappointment.

Chrysler has disbanded the engineering team that was trying to bring three electric models to market as a rush job, Automotive News reports today. Chrysler cited its devotion to electric vehicles as one of the key reasons why the Obama administration and Congress needed to give it $12.5 billion in bailout money, the News points out.

The change of heart on electric vehicles has come under Fiat. At a marathon presentation of Chrysler's five-year strategy, CEO Sergio Marchionne talked about just about everything on Chrysler's plate last week except its earlier electric-car plans. With the group's disbanding, Chrysler's electric plans will be melded into Fiats. Marchionne is apparently no fan of electric power:

He says electrics will only make up 1% or 2% of Fiat sales by 2014 and that he doesn't put a lot of faith in the technology until battery developments are pushed forward.

more:
http://content.usatoday.com/communities/driveon/post/2009/11/620001133/1?POE=click-refer

[Romulox]

1. Fiat is the corporation hand picked by the Obama administration to recieve Chrysler's assets...

Blaming "Chrysler" as if it is an independent entity with decision making powers only clouds the issue.

This is a decision made by Fiat (Sergio Marchionne does not live in Auburn Hills, Michigan.) :hi:

[Lance_Boyle]

2. He is probably right on the 'state of battery tech' argument.

That's where a revolution needs to happen before electric cars make mass-market sense. Or green sense, given the environmental ugliness of battery building and battery "retirement."

[wtmusic]

5. Where do I start.

I'm going to be test driving a Nissan next Sunday that gets 100 miles to a charge and costs just over $20K with fed tax rebate. Uses not a drop of gasoline, costs pennies a mile, and would be the perfect second car for America's 20 million commuting families.

The enviromental "ugliness" of Li-Ion battery building doesn't begin to compare to that of oil refining, and with even plain old lead-acid batteries 95% of lead is recycled.

No, the revolution has already begun, and Detroit has been caught with its pants down. Sounds like you haven't checked in on the state of electric vehicles in at least ten years.

[Statistical]

14. Exactly.

Batteries have an environmental cost but it is nothing like the environmental cost of burning oils for decade after decade after decade.

Internal Combustion technology is a dead end. At best it is 20% efficient and requires HUGE cost to even be moderately clean (downright filthy). vacuum lines, emission controls, fuel sensors, air flow regulators, catalytic converters, etc. Despite all that cost and complexity they are still horribly dirty and very inefficient. 80%+ of the energy in gasoline is turned into waste heat in an internal combustion engine.

The only reason we still burn gas is it is subsidized. If the entire cost of war in Iraq was paid by gasoline tax the price difference between gas & electric would be even smaller.

[Mari333]

3. will they be slapped around? hell no

corporate executives and their ilk never get slapped around. they continue to outsource jobs and use slave labour and never hear a peep from the politicians.

we all need more KY jelly.

[ixion]

4. I lost faith in US Automakers years ago, so this is no surprise

For the life of me, I can't understand why the hell we bailed out a bunch of crappy companies. Lo' and behold, they continue to offer crappy, out-dated products.

And if they get in trouble, they'll just lie again and as for another bail out. :puke:

[Romulox]

6. Umm, Sergio Marchionne is the CEO of FIAT, an Italian company.

Just thought you should know before you continued on your ill-informed rant. :hi:

[wtmusic]

7. You want them to build great cars AND get their reps in Congress re-elected?

Those handouts don't come free, you know!

[divideandconquer]

9. As if all these foreign companies aren't heavily subsidized by their governments

Fiat has the most advanced gasoline and diesel engines in the world. Chevy is beating almost every comparable Toyota in gas mileage right now. Even Consumer Reports recommend the Dodge Ram over Toyota Tundra as does almost every other automotive publication. BTW, the HEMI RAM gets better gas mileage than 5.7L Toyota.

[imdjh]

18. And yet those Toyota owners/buyers are unconvinced. Amazing, isn't it?

[Statistical]

8. Chrysler will be gone within 5 years tops.

GM will survive. Ford will likely grow. Chrysler is dead weight.

They are too small, offer too few "must have" vehicles and really don't excel (offer something better than Ford, GM, or foreign entities) in any product segments.

Everything Chrysler sells is offered in better deal by their competitors. Momentum and bailout cash will keep them around for couple more years but Chrysler will be gone soon.

[divideandconquer]

11. The Ram truck is considerably better than it's competition

Chrysler regained the lead in minivan sales last month. Jeep Wrangler is still popular and has one of the highest resale values of any vehicle. An fantastic Grand Cherokee is on the way.

[Statistical]

13. My point is not that they "suckz" as everything.

Just they are too small with too little differentiation to survive against better funded players.

Ram is a good truck but F-150, Silverado, and likely soon Tunda all outsell it.

Chrysler makes the best minivans. A market segment that has been in decline for last 2 decades. It is like saying they make the best wood paneled station wagons.

[divideandconquer]

15. FIAT and Chrysler together aren't small and perfectly complement each other

The minivan form factor will never go away, it's like saying laptops are going away because of netbooks. A lot of so-called crossover vehicles are just minivans in disguise.

[imdjh]

19. Chrysler minivans are synonymous with surrender. Jeeps are notorious money pits.

The only reason Chrysler has a new lifetime drive train warranty is because they had such an awful reputation and because Hyundai and Kia were killing them.

[divideandconquer]

21. So when Hyundai has a long warranty it's because they're good

and when Chrysler has a long warranty, it's because they're bad? Did you know Chrysler, Hyundai and Mitsubishi share the same 2.4L engine? When it's in a Hyundai it's good and I guess when it's in a Chrysler it's bad?

[HughBeaumont]

10. They need to make Electric Cordobas.

I'd buy one. And that pimp suit Mr. Roarke is wearing.

[n2doc]

12. Hell, put some solar panels on it!

Probably could charge it up for free with all that area on the hood.....

Kahn!

[Blue_Tires]

16. this FIAT 'partnership' is going to be more damaging than the Mercedes one

at least Mercedes for awhile at least pretended to try and make it work...

[Sen. Walter Sobchak]

17. this is what irritates the hell out of me about the bailout

Chrysler and GM are going to bring a handful of European platform and alternative fuel vehicles to market - they will be poorly marketed and overpriced, setup to fail. They will then claim the American consumer doesn't want them and go on their way with the same product line that brought them to where they are today.

[divideandconquer]

20. So you have a crystal ball?

FIAT has a vested interest in selling small cars in the US, Mercedes didn't. Chrysler is getting 3 FIAT small car platforms with the new MULTI-AIR engines+ the wildly successful FIAT 500 coming in thousands less than the MINI.

The Chevy Cruze is exciting and will be heavily promoted.