Chrysler promises electric cars by end of 2010

DETROIT -- Chrysler LLC introduced three electric vehicles today and
promised to have one of them on the market by the end of 2010.

The announcement posed a direct challenge to U.S. rival General Motors,
which plans to bring its Chevrolet Volt plug-in hybrid sedan to market in
2010.

The three vehicles a
• The Dodge EV all-electric sports car, developed in partnership with
England's Lotus Cars Ltd.

• The Jeep EV, a Wrangler-based extended-range electric vehicle.

• The Chrysler EV, a Chrysler Town & Country-based extended-range electric
vehicle.

Chrysler CEO Bob Nardelli said the company had no option but to develop
electric vehicles. He said the automaker may face "gut-wrenching" decisions
if the federal government does not approve a loan package to help car
companies develop electric propulsion technology at an affordable price for
consumers.

If the resources aren't available, Nardelli said Chrysler might have to face
further layoffs and production capacity cutbacks.



Meeting with Wagoner, Mulally

Nardelli said that he, Ford CEO Alan Mulally and General Motors CEO Rick
Wagoner visited lawmakers in Washington last week and were encouraged by
progress on the package. Chrysler officials denied they wanted to show off
the electric vehicles while Congress is debating the loan package and energy
legislation.

Chrysler's ENVI electric vehicle r&d organization developed the three
vehicles. Development of the vehicles had begun before Cerberus Capital
Management LP bought 80.1 percent of Chrysler in August 2007.

Frank Klegon, Chrysler's executive vice president of product development,
predicted that by 2020, 50 percent of cars sold in the United States would
have electric powertrains. Chrysler executives say they will eventually make
versions of all vehicles available with some form of electric power.

The strategy contrasts with that of GM, which is concentrating on specific
vehicles -- particularly the Chevrolet Volt plug-in hybrid -- available in
2010.

Nardelli said Chrysler's decision not to design all new vehicles was
deliberate.

"We elected to put our money and resources into the technology and not into
the platform and body," he said.

"As any new technology comes out, there is a cost. Our goal is to work with
battery suppliers to keep the cost down," said Klegon. Chrysler is already
working with suppliers of electric motors and batteries. Chrysler has issued
no purchase orders yet, but it working with them on development agreements.

Cheaper than the Tesla

The electric sports car would be powered by a lithium ion battery pack, have
a range of about 150 miles on a charge and could be brought to market for
less than the $109,000 Tesla electric sports car, which also uses a
Lotus-designed chassis.

The electric versions of the Chrysler Town & Country and Wrangler, would
have a 40-mile all-electric range, same as the Chevrolet Volt. Both use a
very small gasoline engine to power a generator to make electricity for the
electric motor, similar to the way the Volt operates.

But the Chrysler engine is tiny, just 900cc, or about the size of a
motorcycle engine.

Doug Quigley, Chrysler's product engineering executive for electric
powertrains, said the size of the engine could be scaled up or down as
needed. The performance of the electric version of the Town & Country would
not suffer when being driven in the gasoline engine mode, Quigley said, and
that it would get 50 mpg or more while emitting less than half of the carbon
dioxide emissions of a regular Town & Country.

Global Insight analyst Aaron Bragman said Chrysler "stunned" the industry
with its electric vehicle initiative.

"Perhaps the best-kept secret in the auto industry, Chrysler's electric car
bombshell is an attempt to prove to the public and media that the company is
indeed working on future vehicles, and that it still has life left in it,"
he said in a written report.

"In terms of which vehicle will enter production, the most likely candidate
is the Dodge EV sports car, as it seems to be based on an already existing
platform (the Lotus Europa) and likely requires the least amount of
development."

Lotus is expected to make an announcement today on its possible linkup with
Chrysler.

"We will apply the technology to front-wheel drive, rear-wheel drive and
all-wheel drive body on frame" vehicles, said Tom LaSorda, Chrysler
co-president. Chrysler has made no decision on where it will manufacture its
electric vehicles, he said.

So far, California's Tesla Motors Inc. has taken more than 600 orders for
its electric sports car. On May 1, the company's first dealership opened. As
of early September, 27 customers had taken delivery of the vehicle.

PRESS RELEASE: Chrysler LLC Surges Forward With Production-Intent Electric
Vehicles

Company Introduces Three Advanced Electric-Drive Vehicle Prototypes

AUBURN HILLS, Mich., Sept. 23 /PRNewswire/ -- Actions speak louder than
words.

-- One targeted to be produced in 2010 for consumers in North American

markets, and European markets after 2010

-- Chrysler LLC to have approximately one hundred electric vehicles on the

road in government, business, utility and development fleets in 2009

-- Chrysler electric-drive technology to be applied to front-wheel-drive,

rear-wheel-drive, and body-on-frame four-wheel-drive platforms

-- Dodge EV: All-electric Performance Sports Car

-- Jeep(R) EV: Wrangler Range-extended Electric Vehicle to allow

customers to roam the planet and take care of it at the same time

-- Chrysler EV: Town & Country Range-extended Electric Vehicle

-- Chrysler and General Electric pursue joint project with U.S. Department

of Energy

Chrysler LLC announced today that the Company and its ENVI organization have
new production-intent, advanced electric-drive technology packaged in three
different vehicles -- one for each of its brands, Chrysler, Jeep(R) and
Dodge.

Chrysler will select one electric-drive model to be produced in 2010 for
consumers in North American markets, and European markets after 2010.
Additionally, approximately one hundred Chrysler electric vehicles will be
on the road in government, business, utility and Chrysler development fleets
in 2009.

The Company said that it is well into the development of advanced,
production-intent electric vehicles, and that it will apply electric-drive
technology to its front-wheel-drive, rear-wheel-drive and body-on-frame
four-wheel-drive platforms in the next several years.

At its World Headquarters here today, Chrysler revealed its electric-drive
prototypes -- Dodge EV, Jeep EV and Chrysler EV -- and demonstrated the
driving performance and capability of each.

"We have a social responsibility to our consumers to deliver environmentally
friendly, fuel efficient, advanced electric vehicles, and our intention is
to meet that responsibility quickly and more broadly than any other
automobile manufacturer," said Bob Nardelli, Chairman and CEO -- Chrysler
LLC. "The introduction of the Chrysler, Jeep and Dodge electric vehicles
provides a glimpse of the very near future, and demonstrates that we are
serious and well along in the development of bringing electric vehicles to
market."

ENVI Organization

The development of Chrysler's Electric Vehicles and Range-extended Electric
Vehicles is led by ENVI -- representing the first four letters of
"environmental" -- the Company's in-house organization that was formed to
focus on electric-drive production vehicles and related advanced
technologies. The development of electric-drive systems for future Chrysler,
Jeep and Dodge vehicles is maturing quickly.

"ENVI was created just over one year ago with the strategic intent to
develop electric-drive vehicles quickly for Chrysler, and it is surpassing
expectations," said Tom LaSorda -- Vice Chairman and President. "With ENVI,
Chrysler is developing technology to bring Electric Vehicles and extremely
fuel-efficient Range-extended Electric Vehicles to market."

Electric Vehicle Technology

Chrysler's Electric Vehicles utilize just three primary components. These
include an electric motor to drive the wheels, an advanced lithium-ion
battery system to power the electric-drive motor, and a controller that
manages energy flow. The electric-drive system is being developed for
front-wheel-drive, rear-wheel-drive, and body-on-frame four-wheel-drive
vehicle applications.

"This technology provides customers with a vehicle that has zero tailpipe
emissions and a 150 to 200 mile driving range -- far exceeding most
Americans' daily commutes, as nearly 80 percent of Americans drive less than
40 miles per day, or 14,000 miles per year," said Frank Klegon, Executive
Vice President -- Product Development. "Electric Vehicles provide the
opportunity to fulfill social responsibility, reduce dependency on foreign
oil, and eliminate monthly gasoline bills, while delivering performance and
utility that our customers desire."

Range-extended Electric Vehicle Technology

The Range-extended Electric Vehicle combines the electric-drive components
of the Electric Vehicle with a small gasoline engine and integrated electric
generator to produce additional energy to power the electric-drive system
when needed. This provides the positive attributes of an Electric Vehicle
with the driving range equivalent to today's gasoline-powered vehicles --
with no compromises in performance.

Range-extended Electric Vehicles offer environmental responsibility without
giving up driving range, comfort or utility.

Dodge EV

The Dodge EV development Electric Vehicle is a two-passenger
rear-wheel-drive sports car that marries high performance with zero tailpipe
emissions.

"The Dodge EV sets a new standard for what can be expected in electric-drive
vehicles," said Lou Rhodes, Vice President -- Advance Vehicle Engineering,
and President -- ENVI. "The electric-vehicle technology enables a
fun-to-drive performance sports car and helps redefine the vision of an
environmentally responsible vehicle for the Dodge brand."

The electric-drive system consists of three primary components: a 200 kW
(268 horsepower) electric motor, an advanced lithium-ion battery and an
integrated power controller.

The 200 kW electric-drive motor generates 650 N*m (480 lb.-ft.) of torque.
The instant high torque of the electric-drive motor delivers outstanding
performance, accelerating the Dodge EV to 60 mph in less than five seconds,
with quarter-mile times of 13 seconds. The Dodge EV has a top speed of more
than 120 mph.

Working with the latest advanced lithium-ion battery technology, the Dodge
EV has a continuous driving range of 150 to 200 miles, based on advancement
of new battery technology -- more than triple the average daily commute of
most consumers. Recharging the vehicle is a simple one-step process:
plugging into a standard 110-volt household outlet for eight hours. The
recharge time can be cut in half to four hours by using a typical 220-volt
household appliance power outlet.

The Dodge EV offers driving enthusiasts a performance sports car that can be
driven to work every day -- without consuming gasoline or producing tailpipe
emissions.

Jeep EV

The Jeep EV development vehicle is a Range-extended Electric Vehicle that
provides a glimpse into the future of a "Go Anywhere, Do Anything" vehicle
with renowned Jeep Wrangler capability.

The Jeep EV combines Wrangler's unmatched off-road capability with the
ultimate "Tread Lightly" mindset by providing nature ambassadors with the
ability to roam the planet and take care of it at the same time.

The Jeep EV Range-extended Electric Vehicle uses an electric motor, an
advanced lithium-ion battery system, and a small gasoline engine with an
integrated electric generator to produce additional energy to power the
electric-drive system when needed. The 200 kW (268 horsepower) electric
motor generates 400 N*m (295 lb.-ft.) of torque. With approximately eight
gallons of gasoline, the Jeep EV has a range of 400 miles, including 40
miles of zero fuel-consumption, zero-emissions, all-electric operation.

"We are also exploring four-wheel-drive, in-wheel electric motors to
demonstrate the full reach of ENVI's advanced electric-drive technologies,"
said Rhodes.

The instant high torque of the electric-drive motor and the ability to
precisely control each wheel independently results in off-road capability
ideally suited for the Jeep brand, without compromising on-road driving
capability.

Chrysler EV

The Chrysler EV development vehicle is a Range-extended Electric Vehicle
that demonstrates another possible application of ENVI electric-drive
technology in the segment-leading Chrysler Town & Country minivan.

"With the Chrysler EV, we are able to blend seven-passenger capability and
the luxury of the Chrysler Town & Country minivan with electric-drive
technology, demonstrating family practicality with zero compromise," said
Rhodes. "ENVI's electric-drive development vehicles showcase our accelerated
application of electric-drive systems into a wide range of vehicles in
Chrysler's future product portfolio."

The Chrysler EV combines the electric-drive components of an Electric
Vehicle with an integrated small-displacement engine and generator to
produce additional electricity to power the electric-drive system when
needed. This provides all of the positive attributes of an Electric Vehicle
and extends the driving range to be equivalent to today's gasoline-powered
vehicles -- without compromises.

The Chrysler EV uses a 190 kW (255 horsepower) motor, producing 350 N*m (258
lb.-ft.) of torque, providing 0 to 60 mph acceleration in approximately nine
seconds. The Chrysler EV Range-extended Electric Vehicle can drive 40 miles
on all-electric power, and boasts a range of 400 miles on approximately
eight gallons of gasoline. This makes the Chrysler EV the perfect
fuel-efficient family vehicle.

The knowledge and experience gained from the Chrysler EV will be applied to
other front-wheel-drive applications in Chrysler's portfolio.

Chrysler LLC Electric-vehicle Consumer Web Site

Chrysler LLC has launched a web site -- www.Chryslergoeselectric.com -- to
allow consumers to view the latest updates on Electric Vehicles and
Range-extended Electric Vehicles from the Company. Content will include
videos, photography and news, and visitors can sign up for updates. In
addition, the site features a blog where consumers can interact directly
with the Company.

Department of Energy Cooperative Agreement

Chrysler and General Electric are jointly pursuing a project with the United
States Department of Energy to explore advanced energy-storage technology.

"Chrysler's partnership with General Electric combines the electric-drive
technology demonstrated in the Chrysler Electric Vehicles, with GE's
research and development of advanced energy storage systems," said Klegon.
"Our collective goal working with the DOE is to develop a new, integrated
energy-storage system to make electric vehicle battery packs smaller and
significantly less expensive than current designs."

Chrysler and GE will develop and evaluate dual-battery solutions based on
GE's unique technology.

"One of the challenges with electric vehicles is finding a battery with the
correct balance between power -- for example, during vehicle acceleration --
and energy for long driving range," said Klegon. "We believe that combining
two unique battery chemistries -- one biased toward power and the other
toward energy -- into a single battery pack is very promising for a future
Chrysler Electric Vehicle."

DODGE EV

PRELIMINARY SPECIFICATIONS

Vehicle Type

Body style: Two-passenger, performance sports car

Drivetrain: Electric propulsion, rear-wheel drive

Category: Electric Vehicle

Electric-drive System

Power: 200 kW (268 hp)

Torque: 650 N*m (480 lb.-ft.)

Energy Recovery: Regenerative braking

Battery System

Type: Lithium-ion

Energy: 26 kWh

Peak power: 200 kW

Voltage: 380 to 420

Charging: Onboard charger - dual voltage

110/120-volt outlet (15A) - standard household

power outlet

220/240-volt outlet: (30A) - household appliance

power outlet

Performance

0-60 mph: Less than 5.0 seconds

1/4-mile Acceleration: 13.0 seconds

Top speed: More than 120 mph

Range (city): 150 to 200 miles

JEEP EV

PRELIMINARY SPECIFICATIONS

Vehicle Type

Body style: Five-passenger SUV

Drivetrain: Electric propulsion, two-wheel drive and four-wheel

drive

Category: Range-extended Electric Vehicle

Electric-drive System

Power: 200 kW (268 hp)

Torque: 400 N*m (295 lb.-ft.)

Energy Recovery: Regenerative braking

Battery System

Type: Lithium-ion

Energy: 27 kWh

Peak power: 200 kW

Voltage: 370 to 410

Charging: Onboard charger - dual voltage

110/120-volt outlet (15A) - standard household

power outlet

220/240-volt outlet: (30A) - household appliance

power outlet

Performance

0-60 mph: 9.0 seconds

1/4-mile Acceleration: 16.5 seconds

Top speed: More than 90 mph

Range (city): 400 miles, with more than 40 miles all-electric

CHRYSLER EV

PRELIMINARY SPECIFICATIONS

Vehicle Type

Body style: Seven-passenger minivan

Drivetrain: Electric propulsion, front-wheel drive

Category: Range-extended Electric Vehicle

Electric-drive System

Power: 190 kW (255 hp)

Torque: 350 N*m (258 lb.-ft.)

Energy Recovery: Regenerative braking

Battery System

Type: Lithium-ion

Energy: 22 kWh

Peak power: 200 kW

Voltage: 370 to 410

Charging: Onboard charger - dual voltage

110/120-volt outlet (15A) - standard household

power outlet

220/240-volt outlet: (30A) - household appliance

power outlet

Performance

0-60 mph: 8.7 seconds

1/4-mile Acceleration: 16.2 seconds

Top speed: More than 100 mph

Range (city): 400 miles, with more than 40 miles all-electric