Chrysler LLC is asking the U.S. Department of Energy for $224 million from the department’s Transportation Electrification Initiative to finance the development of electric vehicles (EVs). It joins a long list of competitors also seeking federal funds.
The list of vehicles targeted from the program includes the Dodge Ram 1500 Plug-in Hybrid-electric Vehicles (PHEV), Chrysler Town & Country PHEVs and Chrysler Town & Country Electric Vehicles.
“Department of Energy (DOE) initiatives aimed at vehicle electrification “demonstrates how Chrysler LLC, with its partners and the DOE, can work together to promote technological innovation and energy independence in the United States,” Chrysler said.
Chrysler LLC applied for two programs established by the DOE: the Electric Drive Vehicle Battery and Component Manufacturing Initiative; and the Transportation Electrification Initiative.
Both are designed to speed up development, demonstration, evaluation and manufacturing of EVs and PHEVs. The programs represent a 50/50 cost-share opportunity with $224 million from Chrysler LLC and its partners, combined with a matching $224 million from the DOE. These funds will accelerate the market introduction and penetration of advanced powertrains.
“These initiatives represent how government and the automotive industry are answering the challenge of reaching common goals and demonstrate how rapidly this type of advanced technology can be brought to market in a collaborative environment,” said John Bozzella, Senior Vice President–External Affairs and Public Policy, Chrysler LLC. “Without U.S. innovation and production capacity, we will simply trade batteries for oil in the pursuit of transportation energy,” he said.
If approved, Chrysler LLC plans to use funds to build a demonstration fleet of PHEVs and EVs, as well as create a manufacturing center located in Michigan. The proposal will enable the production of what are said to be commercially viable products in a shorter time frame.
The Chrysler Town & Country and Dodge Ram 1500 are popular models in their respective segments and as PHEVs can achieve substantial greenhouse-gas reduction. To ensure a robust assessment, Chrysler will demonstrate 100 Chrysler Town & Country PHEV minivans and 100 Dodge Ram PHEV pickup trucks across a range of drive cycles and consumer-usage patterns in diverse geographies and climates throughout the United States. The company has established more than a dozen partnerships with city and local governments, research and development authorities, utility companies and universities to test the PHEVs.
In addition, through a partnership between Chrysler LLC’s ENVI group and the U.S. Postal Service (USPS), Chrysler LLC will deliver 165 Chrysler Town & Country EV cargo minivans for daily mail service in four regions throughout the country.
The Electric Drive Vehicle Battery and Component Manufacturing Initiative Within the Electric Drive Vehicle Battery and Component Manufacturing Initiative, Chrysler LLC plans to use part of the money, $83 million, to build a new vehicle electrification technology and manufacturing center in Michigan. This new facility would house development, testing and electric-drive component manufacturing in addition to final assembly of EVs and Range-extended Electric Vehicles (ReEVs). The complex would be functional by 2010 and could produce more than 20,000 units per year.
“These proposals present a win-win situation for Chrysler and, most importantly, our customers,” said Frank Klegon, Executive Vice President, Product Development, Chrysler. “This plan will accelerate our efforts to develop and manufacture electric and plug-in hybrid-electric vehicles, which will reduce the amount of time it will take to get these vehicles on the road.”