Chrysler Set To Unveil Their Fiat 500 EV Concept

Chrysler Group LLC, the U.S. automaker run by Italy’s Fiat SpA, will debut a battery-powered version of the Fiat 500 subcompact at the Detroit auto show, two people familiar with the matter said.

Chrysler’s decision on whether to put the car into production is unknown, said the people, who declined to be identified because the details aren’t public. Chief Executive Officer Sergio Marchionne said last month the company plans to produce about 56,000 electric vehicles annually by 2014, and Chrysler may base its initial model on the Fiat Doblo van.

A Chrysler model based on Fiat’s Lancia Delta hatchback also will be displayed at next month’s show, three people familiar with the matter said last week. The cars signal how Fiat’s designs will be incorporated into Chrysler’s lineup to help end losses after the Auburn Hills, Michigan-based company left bankruptcy.

“It would make perfect sense,” said Michael Robinet, an analyst with CSM Worldwide Inc. in Northville, Michigan. “That would be a natural evolution.”

An electric Fiat 500 gives Chrysler a competitor to Bayerische Motoren Werke AG’s Mini-E electric car. BMW began leasing a limited run of Mini Cooper plug-in electric cars this year.

Gualberto Ranieri, a Chrysler spokesman, declined to comment. The company isn’t listed on the Web site of the North American International Auto Show as having a news conference planned to discuss either vehicle.

Changed Strategy

Chrysler, under a new five-year business plan, backed off of the strategy set under previous owner Cerberus Capital Management LP to create a full lineup of electric vehicles, the first of which would have been for sale at the end of 2010.

The 500, Turin-based Fiat’s second-most popular vehicle in Europe behind the Panda small hatchback, will go on sale in the U.S. late in 2010 or in January 2011, Marchionne has said. He has said the 500 will be sold as a convertible and as the Abarth performance version in addition to the standard model.

Marchionne said last week the Fiat 500 will be built in Mexico at a plant capable of producing more than 100,000 cars. About half the volume would be exported to South America, he said.

Fiat owns 20 percent of Chrysler and can raise its stake to 35 percent by achieving certain performance milestones, such as building a fuel-efficient engine in the U.S. The company’s five- year plan calls for having designs from Fiat account for more than half of global sales by 2014.

Fiat rose 7 cents to 10.33 euros at 4:42 p.m. in Milan. The shares have more than doubled this year.

Source: Bloomberg