As it continues to restructure itself in a way more conducive to growth and sustainability, Chrysler has gone ahead and sold subsidiary Global Electric Motorcar to Polaris, a manufacturer of recreational vehicles. Global Electric Motorcars, or GEM, is based in Fargo, ND, and was purchased by Chrysler in the earlier part of the decade.
The company was not losing money or placing any substantial burden on Chrysler. Conversely however, it did not really add anything to the organization, in terms of money or technology, and those two items are priority one for Chrysler right now. The company was merely a distraction.
Chrysler originally bought GEM in an effort to offset the emissions footprint of its product lineup and appear a bit greener.
“Chrysler Group is continuously evaluating strategic requirements in the rapidly changing regulatory environment for alternative propulsion vehicles,” Chrysler said in a statement. “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 partnership no longer made sense for GEM either. The company had essentially been stagnant as far new technology is concerned, and that was not going to change without a heavy infusion of cash. Aside from the fact that Chrysler doesn’t have it to spare, the Auburn Hills auto-maker’s electrification and low-emissions development efforts have been shifted, and are now interlaced with those of Fiat.
Through the sale of GEM, Chrysler was able to raise some extra cash, which is much needed by the still-reorganizing company. The revenue lost through the sale is inconsequential to say the least; GEM’s revenues are approximately one-twentieth of one percent of what Chrysler expects to pull in this year.
– By: Stephen Calogera