Chrysler Group LLC announced Monday its plans to engineer and produce a pure electric vehicle using the Fiat 500 platform. Shown earlier this year at the 2010 North American International Auto Show, the Fiat 500EV demonstrates the immediate benefits of the alliance between Chrysler Group and the Fiat Group as well as the speed at which the two companies can work together on advanced vehicle programs.

"The alliance with Fiat presented new opportunities to merge Chrysler Group engineering knowledge with new platforms and the Fiat 500EV is an outstanding example of our efforts," said Scott Kunselman, senior vice president engineering, Chrysler Group LLC. "The Fiat 500 is a small, lightweight platform perfect for integrating electric-vehicle technology."

The Fiat 500EV powertrain is comprised of three main systems: high power electric powertrain module, advance lithium ion battery and an EV control unit to manage power flows.

Beginning in 2012, Chrysler Group will manufacture the Fiat 500EV for the United States market. All powertrain engineering and vehicle development will take place at Chrysler Group headquarters in Auburn Hills, Mich. Pricing will be announced closer to launch, but will be competitive with similar electric vehicles in the market.

Last year Chrysler Group announced the company's intention to build the Fiat 500 with a combustion engine for North America. The vehicle will debut in late 2010.