Chrysler Group has announced that its plans to engineer and produce a pure electric vehicle using the Fiat 500 platform, the prototype of which was shown earlier this year at the North American International Auto Show in Detroit. Then the prototype, which drew much attention, was dubbed as the Fiat 500 BEV and was wearing an Abarth bodykit. Manufacturing of the electric Fiat 500 is slated to get underway in 2012.

“The alliance with Fiat presented new opportunities to merge Chrysler Group engineering knowledge with new platforms and the Fiat 500EV is an outstanding example of our efforts,” said Scott Kunselman, the Senior Vice President of Engineering at Chrysler Group, in a statement today. “The Fiat 500 is a small, lightweight platform perfect for integrating electric-vehicle technology.”

The Fiat 500EV powertrain is comprised of three main systems; high power electric powertrain module, advance lithium ion battery, and an EV control unit to manage power flows. Beginning in 2012, Chrysler Group will manufacture the Fiat 500EV for the United States market. All powertrain engineering and vehicle development will take place at Chrysler Group headquarters in Auburn Hills, Mich. Pricing will be announced closer to launch, but will be competitive with similar electric vehicles in the market.

Chrysler Group has been announced as the vehicle electrification center of competence for both Chrysler Group and Fiat Group; this has comes as a swift reversal in policy as just last November the company's electrification "ENVI" division was disbanded and its engineers absorbed into the Fiat structure. Chrysler says it is now exploring ways to promote zero-emission transportation and the development of an electric-vehicle charging infrastructure through partnerships to be announced in the future. Last year Chrysler Group announced the company’s intention to build the Fiat 500 with a combustion engine for North America. The vehicle will debut in late 2010.

Ram Plug-in Hybrid Electric Vehicle (PHEV)

Chrysler Group has been selected for a U.S. Department of Energy (DOE) grant of up to $48 million as part of a $2.4 billion American Recovery and Reinvestment Act DOE Vehicle Electrification program. Chrysler Group is planning to build a total of 140 Ram PHEVs for a three-year demonstration project that includes various geographic and climatic locations across the United States.

“This initiative represents how government, automotive industry, suppliers and key partners are reaching common goals and demonstrates how rapidly this type of advanced technology can be brought to market,” said Paolo Ferrero, Senior Vice President—Powertrain, Chrysler Group LLC. “DOE-support for domestic advanced technology is an important enabler for Chrysler Group and its key suppliers in order to understand and test customer acceptance and the capability of PHEV systems in a variety of real-world conditions.”

The Ram PHEV features Chrysler Group’s 5.7-liter HEMI V-8 with a two mode hybrid transmission and a 12 KwH lithium ion battery. The vehicle however is only capable of up to 20 miles of zero-emission, pure-electric range without the need for gasoline. An overall fuel economy improvement more than 65 percent is expected for average drive cycles. Chrysler Group has partnered with Electrovaya Inc. to supply the advanced lithium Ion batteries for the Ram PHEV test fleet. The DOE grant will expedite the development of vehicle-electrification technology. More than 21 Chrysler Group partners across the U.S., including utility companies, government agencies and Universities will independently test the Ram PHEV and provide valuable data for the advancement of the technology. In 2008, Chrysler Group announced the company’s intention to bring a Ram Hybrid Electric Vehicle (HEV) to market. After closely evaluating the response to hybrid pickups in the marketplace, the company could not formulate an appropriate business case and has decided to cancel development work on the 2011 Ram HEV.

Chrysler Group’s alliance with Fiat Group brings new platforms and technologies that allow the company to create an improved long-term product strategy with greater fuel efficiency and reduced emissions. Chrysler Group’s five-year plan has a product schedule, including a progressive vehicle electrification strategy although CEO Sergio Marchionne said last November during the announcement of a 5-year business plan that he expected electric vehicles to represent an insignificant volume by 2014.