GEM is the recognized leader within the low-speed vehicle market, with a well-respected brand and approximately US$30 million in sales during the 2010 calendar year. Since the company was established in 1998, they have placed over 45,000 electric-powered vehicles on the road worldwide. GEM has developed business-to-business sales expertise within the fleet and government vehicle markets, and has created a competitive advantage with core competencies in make-to-order vehicle fulfillment and mobile service support.

“GEM provides Polaris with an established position in the low-emission small vehicle market and supports Polaris’ strategy of penetrating on-road market segments poised for growth,” said Scott Wine, Polaris chief executive officer. “We are excited about the outlook for growth within this market space, and are looking forward to developing even stronger growth prospects for the GEM business.”

“Our vision is to accelerate profitable sales growth for GEM, by combining Polaris’ strength in new product innovation with the most-recognized brand in the low speed vehicle market space,” said Mike Jonikas, Vice President of the On-Road Vehicle Division. “These new product efforts for GEM will be supported by an expanded distribution presence within select domestic and international markets.”

The sale represents a further change of direction for Chrysler Group which has wound down its previous "eco" programmes, notably scrapping its "ENVI" electric vehicle initiative after Fiat management took charge. Last January GEM (which was acquired by Chrysler in December 2000) reached the milestone of 40,000 battery-electric vehicles sold and its vehicles have at that point been driven almost 500 million emission-free miles, saving more than 19.5 million gallons of gasoline. That translated into a CO2 reduction equivalent to planting nearly a half-million trees. “GEM is a successful example of how Chrysler Group is reducing CO2 emissions while answering customer needs for alternatively powered vehicles,” said Steve Bartoli—Head of Regulatory Affairs and Engineering Planning, Chrysler Group, at the time. “GEM is directly responsible for cutting CO2 output by more than 93,000 tons by replacing gasoline-powered vehicles with electric vehicles.”

GEM vehicles are currently sold through select Chrysler, Dodge, and Jeep dealerships as well as other select dealerships around the world.

The Chrysler Group yesterday also issued a brief response to news of the sale: "Chrysler Group has decided to focus its energies on its core automotive business, which has led to the sale of substantially all of the assets of GEM and NEV to Polaris Industries, Inc. Chrysler Group and Polaris have signed the negotiated Asset Purchase Agreement. Closing is expected in approximately 60 days," read the statement issued in Detroit, which added: "Chrysler Group is continuously evaluating strategic requirements in the rapidly changing regulatory environment for alternative propulsion vehicles. GEM has contributed significantly to Chrysler's ongoing Zero Emissions Vehicle (ZEV) compliance activities in California and the other Mandate States. Chrysler will pursue a range of other ZEV options moving forward, focusing on full-function EVs." The agreement to acquire GEM will officially close within the next 60 days once Polaris secures the required state sales certifications to sell GEM products.

While the basic and proven technology used in GEM products means they turn in a decent profit margin per unit, Chrysler Group will back pedal very sharply with its next EV project: it has recently admitted that the forthcoming Fiat 500EV - due in the showrooms next year - will see a loss of around US$10,000 racked up for each one sold.

Polaris

With 2010 sales of US$1.991 billion, Polaris designs, engineers, manufactures and markets off-road vehicles (ORVs), including all-terrain vehicles (ATVs) and the Polaris Ranger Side X Side vehicles, snowmobiles and Victory motorcycles for recreational and utility use and has recently introduced a new on-road electric powered neighborhood vehicle. Polaris is a recognized leader in the snowmobile industry; and one of the largest manufacturers of ORVs in the world. Victory motorcycles, established in 1998 and representing the first all-new American-made motorcycle from a major company in nearly 60 years, are making in-roads into the cruiser and touring motorcycle marketplace. Polaris also enhances the riding experience with a complete line of Pure Polaris apparel, accessories and parts, available at Polaris dealerships.

Global Electric Motorcars (GEM)

As a currently wholly owned subsidiary of the Chrysler Group, Chrysler Group Global Electric Motorcars (GEM) is the market leader in the low-speed, Neighborhood Electric Vehicle (NEV) industry and has more than 45,000 GEM battery-electric vehicles on the road worldwide. GEM cars are used by local, state and national government agencies, resorts, master-planned communities, universities, medical and corporate campuses, as well as by sports teams, taxi-shuttle services and individual consumers. The six GEM passenger and utility models are legal on most streets with posted speeds of 35 mph or less and have many of the same features of regular cars, but are much more economical in price and fuel consumption. GEM cars are eligible for incentives and tax credits from clean-air districts and other governmental agencies.