Chrysler Developing Green Versions of Fiat 500, Dodge Ram

Chrysler and Fiat are slowly but surely taking advantage of their symbiotic relationship. Since Fiat took a 20% stake of Chrysler in April 2009, the duo have prepared for the release of a Fiat model in the United States. The traditional Fiat 500 is set for release in autumn 2010 with Fiat using Chrysler’s dealership network to break into North America. Fiat and Chrysler are also looking ahead to the electric vehicle market with a plug-in version of the Fiat 500 due out in 2012. 

Chrysler is currently designing and testing an EV drive system for the Fiat 500 EV in its Auburn Hills, Michigan design center. The Fiat 500 EV will be powered by a lithium-ion battery, an EV control system and an electric motor. The concept for the Fiat 500 EV was floated at this year’s North American International Auto Show without the projected model year. At the show, Chrysler and Fiat representatives said that the concept version would retail for $32,000 due to the costs of the drive system. Fiat is confident that the 500 EV will sell well in the United States and projected a production level of 14,000 units per year starting in 2014.

The notion of Chrysler taking part in EV development would have seemed laughable only two years ago. Chrysler has promised several hybrids and EVs in the past including a hybrid-electric version of the Dodge Ram back in 2008. This abandoned idea has been resurrected thanks to the influx of research & development funds from Fiat and the American government. Chrysler says it will use a $48 million grant from the Department of Energy to develop demonstration versions of a Dodge Ram plug-in hybrid. These public funds will be used for 140 Ram plug-ins to be tested over three years in the United States. This plug-in pickup truck would be able to travel up to 20 miles on all-electric power and increase fuel economy by 65% over the conventional version.

These announcements from Fiat and Chrysler are promising though we should be careful to get too excited. Chrysler has had a habit of changing its plans on hybrids and EVs and Fiat was in its own financial quagmire only six years ago. The marriage of Fiat and Chrysler brands in the United States sounds great to those familiar with Fiat but means little to those who disdain Chrysler for its lack of product quality in recent years. The introduction later this year of the Fiat 500 in its standard form could warm the public to the Fiat brand. If the Fiat 500 is successful, Chrysler and Fiat need to deliver on the EV version by 2012 to ride the momentum. This momentum also pertains to the Dodge Ram PHEV, which needs to evolve quickly from prototype to production after 2014.