Chrysler turns green with Envi

[tonybelding]

Check it. . .

http://media.chrysler.com/newsrelease.do?id=7294&mid=1

Chrysler's new owners seem to be really turning the company upside-down.

[JRP3]

I keep getting "page not redirecting properly" error.

[tonybelding]

The link is working for me in both Safari and Firefox.

AutoblogGreen has picked up the story too:

http://www.autobloggreen.com/2007/09...s-to-get-envi/

[JRP3]

By default I surf with "cookies" turned off, that's why it didn't work for me. First time I've ever had that error though.

[TEG]

media.chrysler.com/newsrelease.do?id=7294&mid=1

…” Auburn Hills, Mich., Sep 13, 2007 - Chrysler LLC announced today the creation of ENVI — a new organization responsible for bringing electric-drive vehicles and related advanced-propulsion technologies to market. Lou Rhodes has been appointed President — ENVI. “…

[tonybelding]

I think this news could be highly important. But to explain why, I'll have to delve into a murky realm of rumors and speculation.

First some background. . . The conjoined DaimlerChrysler AG was one of the world's conservative, traditional, backward-looking companies. Chrysler's product line was focused on retro styling, Jeep SUVs and Dodge Ram trucks, and hemi V8 engines left over from the 1970s. They turned almost all of their R&D over to the German side of DaimlerChrysler, which was hardly any better. The Germans were looking primarily to a future of diesel engines -- and maybe hydrogen fuel cells someday in the far-distant future. They had very little in hybrids and virtually nothing going in BEVs or PHEVs.

Chrysler actually had GEM NEVs and PHEV Dodge Sprinter Vans for sale, but showed no sign of moving that technology toward mainstream passenger cars.

So, now we get into the juicy rumors. . . The one I heard is that DaimlerChrysler AG got into some sort of discussion with Tesla Motors, with a proposed joint venture to produce a PHEV. The rumor is silent about whether the talks ever led to anything at all.

Well, it could just be something that somebody dreamed up. That's how it goes with rumors. (Remember the one about White Star being based on a Ford Focus? Ha!) However, this one would make a fair amount of sense if it were true. DaimlerChrysler executives must have begun to realize how far behind they are falling in electric powertrain technology. With GM and Toyota racing to produce a PHEV, and Mitsubishi, Subaru and Nissan showing BEV concept cars, there's a growing threat to companies who aren't invested in this technology.

It could also make some kind of sense for Tesla, since they could design "Blue Star" as a PHEV and have a reliable source of internal combustion engines to put in it, and perhaps even use a DaimlerChrysler factory to assemble it. They would benefit from access to DaimlerChrysler's resources.

Now we have Daimler and Chrysler going their separate ways. Chrysler is left without much in the way of R&D assets, since Daimler keeps most of those. They need a fresh start. Regardless of whether a deal was ever reached between DaimlerChrysler and Tesla, Chrysler's management is surely aware of any discussions which may have taken place.

So. . . Here's Chrysler forming their own new division. “ENVI will operate as a ‘start-up’ with an entrepreneurial environment," according to Chrysler, but will have access to Chrysler's resources (newly bolstered with cash from Cerberus).

It sounds as though Chrysler want to create their own internal organization as a substitute for Tesla. ENVI will fill the same role within Chrysler that Tesla would (hypothetically) have filled in a venture with DaimlerChrysler.

Of course, saying is one thing and doing is another. It's very easy for pointy-haired management types to toss out buzzwords like "entrepreneurial environment" and "facilitate a speed-to-market development process" and "exploring new and unique ways of engaging target customers". Meanwhile, the whole venture could be easily sunk by corporate politics.

Also, Tesla have been working on the Roadster for something like four years now. ENVI will be starting from near zero. They'll be counting on those CerberusChrysler resources as they try to play catch-up. It won't happen overnight, if it happens at all.

[TEG]

Compared to GM, Toyota, Ford, Chrysler, Daimler, (etc) Tesla is so small.

If any of the giants decide they want to make a splash in some area they can potentially throw so much money and staff at something that the results could come quickly.

Sure we tend to point out that they have so much momentum in the wrong direction that bureaucracy and red tape prevent them from doing things quickly, but there are many tales of "skunkworks" sprouting up with the opportunity to "cherry pick" what they need from the "mother ship" to work miracles in short order.

[vfx]

I again go back to the bible of EV making, "The Car that Could" where the story is told that GM had the Impact group in a separate building running independently. Amazing story especially because the company was so schizophrenic in making / not wanting the car.

(Book Spoiler) The weirdest moment for me in the tale of getting the EV1 to market was when higher-ups placed the lobbyist working against the CARB mandate in the building with the EV1 builders! That had to be creepy.

[vfx]

What's good about all these companies (new Subaru and Chrysler announcements) is that the public's EV education will be more pervasive.

Wouldn't it be nice if they could all band together to teach in a cohesive way that an EV is unique in it's care and feeding and how they may not be an ideal form of primary transportation for all.

They need to start with a website like EV-Answers.com then go with some "news" stories in print and finally TV spots.

[tonybelding]

Compared to GM, Toyota, Ford, Chrysler, Daimler, (etc) Tesla is so small.

If any of the giants decide they want to make a splash in some area they can potentially throw so much money and staff at something that the results could come quickly.

That depends on how you define "quickly". It typically takes GM about three to four years to bring a new car to market, from first design to rolling them off the assembly line. That's even with no radical new technology involved, just an ordinary new car platform. (Take a look at the new Camaro for an example.)