Chrysler Disbands ENVI Electric Vehicle Group; Function Absorbed into Traditional Line Organization | Eco Friendly Mag

Chrysler Disbands ENVI Electric Vehicle Group; Function Absorbed into Traditional Line Organization | Eco Friendly Mag: "Chrysler Disbands ENVI Electric Vehicle Group; Function Absorbed into Traditional Line Organization

Reuters reports that Chrysler has disbanded its ENVI team, formed in 2007 to bring electric-drive vehicles and related advanced-propulsion technologies to market. (Earlier post.) At the North American International Auto Show in January 2009, Chrysler had introduced two new EV concepts and updates on three earlier EV concepts developed by the ENVI group. (Earlier post.)

In April 2009, Chrysler unveiled four all-electric Chrysler Town & Country minivan concepts to the US Postal Service (USPS) in Washington, DC. Then, Chrysler announced that it intended to apply to the US Department of Energy’s (DOE) Transportation Electrification stimulus program for a federal grant, which would enable Chrysler to establish a nationwide demonstration fleet of zero-emission electric minivans that could be used by the US Postal Service for mail delivery. (Earlier post.)

And in May 2009, Chrysler LLC submitted three proposals representing a request for $224 million in funding to two US Department of Energy (DOE) initiatives: the Electric Drive Vehicle Battery and Component Manufacturing Initiative and the Transportation Electrification Initiative. With a 50/50 cost share, the total investment represented by the proposals is $448 million. Proposed vehicles covered under the submission include Dodge Ram 1500 Plug-in Hybrid-electric Vehicles (PHEVs), Chrysler Town & Country PHEVs and Chrysler Town & Country Electric Vehicles (EVs). (Earlier post.)

In August, Chrysler took $70 million in grants from the US Department of Energy to develop a test fleet of 220 hybrid pickup trucks and minivans.

During the unveiling of the new five year (2010-2014) business plan last week, however, there was only one hybrid (the two-mode RAM) with plans for a PHEV demo fleet and a battery electric vehicle to follow sometime in mid plan.(Earlier post.)

Chrysler spokesman Nick Cappa said on Friday that an in-house team of electric car development engineers had been disbanded in favor of a more traditional organization. “ENVI is absorbed into the normal vehicle development program,” Cappa told Reuters.

Under the Marchionne plan, former ENVI chief Lou Rhodes will become the group line executive in charge of electric car development for both Fiat and Chrysler, Cappa said.

Marchionne told reporters and analysts electric cars would only represent “one to two percent” of Chrysler’s sales by 2014, equivalent to less than 60,000 vehicles—a percentage consistent with the current proportion of hybrid to conventional vehicle sales for all OEMs in the US with the exception of Toyota. (Earlier post.)

As outlined in the plan, Chrysler is putting a more immediate focus on downsizing its engines and improving fuel economy across the entire portfolio."