Tata Motors, Chrysler team up to offer electric Ace in the US

Chrysler will be selling the Tata Ace EV in the US market

Tata's home-grown mini-truck, the Ace, is going places. Tata Motors has tied up with US carmaker Chrysler’s Global Electric Motorcars (GEM) division to market a battery-powered, electric version of the Ace in the American market. The Ace is expected to go on sale in the US in early-2009.

Tata Motors and GEM are currently working on the Ace’s branding and pricing for the US market. The two companies expect low volumes initially, and pricing for the Ace could be in the region of US$5-6,000. Depending on how well it does in the US market, Tata and Chrysler may even get into a joint venture under which they would assemble the Ace in the US.

Battery-powered Ace prototypes are already being tested. Tata Motors will export the Ace as a completely built unit (CBU), though without the engine and gearbox. Chrysler/GEM will fit the batteries, motor and controller and sell the Ace in the US market.

Given the steadily increasing prices of petrol and diesel – a trend which may well continue in the foreseeable future – Tata will also consider launching the electric Ace in India. However, the electric version is likely to be more expensive than the conventional Ace, which retails for about Rs 2.2 lakh in the domestic market.

Chrysler to source Jeep Wrangler seats from Delhi-based Krishna Maruti

The all-American Jeep Wranger will have Indian-made seats by mid-2009!

In a bid to source more parts from lower-cost countries like India and China, US-based carmaker Chrysler will soon start sourcing seats for its famous Jeep Wrangler, from Delhi-based Krishna Maruti Ltd (KML). Chrysler will order seats worth about Rs 400 crore, and the seats would be fitted on 120,000 vehicles per annum.

KML, a JV between Maruti Udyog and Ashok Kapur & Associates, is one of South Asia’s largest seating systems manufacturer. The company will ship seating sub-assemblies to Ohio, in the US, where the Jeep Wrangler is manufactured. The Indian-made seats should find their way into American Jeep Wranglers by June 2009.

While Chrysler’s order may lead to even bigger and better things for KML, in the US market, Chrysler is also talking to various auto manufacturers in India. The American company wants to explore the possibility of setting up JVs with Indian companies, for making low-cost cars for emerging markets. The company wants to expand its traditional user base in America and also establishing a presence in new and growing markets like India, China, South America and Eastern Europe.

Former parent Daimler sold its 80% stake in Chrysler last year to Cerberus Capital Management, a private equity investment firm that paid US$7.4 billion to buy Chrysler ownership. The DaimlerChrysler merger lasted for nine years, but was never very successful.