Those Chrylser EVs…

So were you as shocked by the unveiling of Chrysler’s electric vehicles as the rest of the automotive community? Knowing that it takes a ton of time to develop vehicles the old in-house way, most people were pretty surprised when Auburn Hills was able to pull the proverbial rabbit out of their hat last week. Chrysler took advantage of a development path commonly used for smaller components and expanded it to the entire powertrain. Similar to the Japanese keiretsu model, where subsidiary companies take over cooperative development of parts like headlamps and seats, Chrysler’s suppliers were asked to take on much larger roles in development of the powertrain. In traditional terms, Chrysler took the role of general contractor and farmed out the plumbing, electrical, and structural work to specialists in each field. This is the exact opposite of what General Motors is doing with the Volt, which is a fully in-house program. The ENVI business model is very interesting in the context of a possible Chrysler sale to Magna, as Magna has been serving as a primary automotive contract engineer and builder for some time and has significant expertise in the role. Could the ENVI project be the road map for a new type of automotive company? We’ll keep you posted.