Chrysler is to develop and build a pure electric vehicle for the US starting in 2012 using the platform of the Fiat 500 shown at this year’s Detroit motor show.

The Fiat 500EV powertrain comprises a high-power electric module, a lithium ion battery, and a control unit to manage power flows.

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Powertrain engineering and vehicle development will be done at Chrysler Group headquarters in Auburn Hills, Michigan. The automaker said pricing would be announced closer to launch, and would be competitive with similar electric vehicles on sale by then.

“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 Chrysler Group senior vice president engineering Scott Kunselman.

“The Fiat 500 is a small, lightweight platform perfect for integrating electric vehicle technology.”

Last year Chrysler said it build the 500 with combustion engine in Mexico for North America, with launch late this year.

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