Chrysler Group said it had decided to focus its energies on its core automotive business, which has led to the sale of substantially all of the assets of GEM and NEV to Polaris Industries. The pair have signed the negotiated asset purchase agreement and closing is expected in around 60 days.

Explaining the move, Chrysler said: "[The group] is continuously evaluating strategic requirements in the rapidly changing regulatory environment for alternative propulsion vehicles. GEM has contributed significantly to Chrysler's ongoing Zero Emissions Vehicle (ZEV) compliance activities in California and the other mandate states.

"Chrysler will pursue a range of other ZEV options moving forward, focusing on full-function EVs."