UPDATE: WSJ: Chrysler Expects To Bring 1st Elec Vehicle To Market In 2010
06 April 2009 - 4:44PM
Dow Jones News
Chrysler LLC selected A123Systems to build lithium ion battery
cells, packs and modules for its electric cars which are expected
to begin hitting showrooms in late 2010.
The electric vehicle components will be used in Chrysler's ENVI
vehicles, which have been in development for a little less than two
years, Lou Rhodes, president of the company's ENVI division said.
The five vehicles included the Dodge Circuit EV, Jeep Wrangler EV,
Jeep Patriot EV, Chrysler Town & Country EV and the Chrysler
200C EV concept.
"The design, development and chemistry is A123," Rhodes said.
"They've been a trusted partner over the last three years."
Chrysler has been tight-lipped about who is helping them build
their electric engine vehicles, one of which they say will hit the
market next year. The company has not said which one, but has
unveiled a minivan, a sports car and two Jeeps with electric
engines in the past year.
Rhodes would not say who is building other key components needed
to drive an electric vehicle, such as the control unit and motor,
but said announcements will coming in the near future.
Former engineers say few people inside the company are working
directly on these vehicles, leading to speculation for months that
they are being developed largely using outside technology.
Rhodes said the collaborative approach Chrysler is taking does
not necessarily put them behind the ball.
"You absolutely have to start somewhere," he said.
Rhodes acknowledged the development of electric engines is
unlikely to help the company reach profitability in the short term,
but is a critical component of the company's long term
viability.
"We do expect to drive volumes up over time," he said. "But the
objective is for Chrysler to be a leader in electric vehicles."
General Motors Corp. (GM) is already working to bring an
electric vehicle to market by 2010. Much of the technology was
developed internally by the auto maker.
A person familiar with the matter said talks between Chrysler
and Tesla Motors, another electric-engine making company, broke
down more than a year ago, prior to any conversation had begun with
any other electric-engine maker.
This would mean Chrysler's electric-engine technology is even
more nascent than the company is acknowledging, this person
said.
"They were both left without a date and so decided to get
together," the person said of Chrysler and A123.
Rhodes denied the company had any talks with Tesla.
A Watertown, Mass. based-company, A123 does not make the other
key components Chrysler would need to make an electric vehicle, but
Rhodes said all other component makers were picked last year.
--By Alex Kellogg; alex.kellogg@wsj.com; 248-204-5519