Chrysler Sells Global Electric Motorcars Unit To Polaris

Polaris Industries Inc. announced on April 26 an agreement to acquire Global Electric Motorcars LLC (GEM), a subsidiary of Chrysler Group LLC, and manufacturer of premium electric-powered vehicles. Polaris is best known for its snowmobiles, and off-road vehicles.

GEM was founded in 1998 in Fargo, ND. Since then, it has sold 45,000 electric-powered vehicles globally.

In 2000, then-DaimlerChrysler AG bought GEM. When Daimler AG sold control of Chrysler to Cerberus Capital Management in August 2007, Chrysler retained GEM as a wholly owned subsidiary. Last year, it generated about $30 million in sales.

The National Highway Traffic Safety Administration classifies GEM's small vehicles as "low-speed" or "neighborhood" EVs, commonly restricted to speeds of 25 mph, but they can legally travel on roads up to 35 mph in most states. Most of the vehicles do not have airbags, and are not required to be crash-tested.

GEM vehicles can travel 30 miles on a charge. Cost ranges vary, from $8,440 for a two-seater, to $14,380 for a six-seater.

Polaris said it expects the market for low-speed EVs to grow.

In a statement on its website, Chrysler said it will pursue a range of other zero emissions vehicle options, focusing on full-function EVs.

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