Chrysler Pulls Plug On Electric Cars Used To Get Bailout

(USA TODAY) -- If you believed all the talk from Chrysler about how our tax dollars would help finance its fast-track electric-vehicle future, you're in for a big disappointment.

Chrysler has disbanded the engineering team that was trying to bring three electric models to market as a rush job, Automotive News reports today. Chrysler cited its devotion to electric vehicles as one of the key reasons why the Obama administration and Congress needed to give it $12.5 billion in bailout money, the News points out.

ALSO ON DRIVE ON: Hopes to restart production of the super-skinny Tango electric car. 

The change of heart on electric vehicles has come under Fiat. At a marathon presentation of Chrysler's five-year strategy, CEO Sergio Marchionne talked about just about everything on Chrysler's plate last week except its earlier electric-car plans. With the group's disbanding, Chrysler's electric plans will be melded into Fiat's. Marchionne is apparently no fan of electric power:

He says electrics will only make up 1% or 2% of Fiat sales by 2014 and that he doesn't put a lot of faith in the technology until battery developments are pushed forward.

As a result, Chrysler won't have an electric car on sale as soon as next year, such as the Dodge Circuit sports car concept it had unveiled. The change has come so fast that Chrysler's website has been still featuring pictures of the electric vehicles. Adds the News:

As late as August, Chrysler took $70 million in grants from the U.S. Department of Energy to develop a test fleet of 220 hybrid pickup trucks and minivans, vehicles now scrapped in the sweeping turnaround plan for Chrysler announced this week by Fiat CEO Sergio Marchionne.