A123 Systems pulls out of Chrysler’s Fiat 500EV project
Following a second-quarter loss of $34.2 million, battery supplier A123 Systems withdrew from a project with Chrysler Group LLC to build electric versions of the Fiat 500.
“A123 will not be supplying battery systems for the Fiat 500EV production program,” Katie Hepler, a Chrysler spokeswoman said. “A123 has been a good development partner in this program and we appreciate their support. We have nothing else to announce at this time.”
In March, A123 and Chrysler announced plans to start producing Fiat 500EVs at Chrysler’s Toluca, Mexico, assembly plant by 2012. The plant will also be making gasoline versions of the Fiat 500 later this year. As of right now, it’s unclear whether A123’s move will delay the launch of the Fiat 500EV – but we wouldn’t doubt it.
– By: Omar Rana
Source: Free Press