In its continuing effort to research and develop electric vehicles and plug-in hybrid models, U.S. automaker Chrysler submitted proposals totaling $448 million to the U.S. Department of Energy on Tuesday, Reuters reported.

Should the proposals be approved, the Department of Energy, Chrysler and its partners would pay $224 million each and would include an investment of up to $83 million to build a new technology and manufacturing center in Michigan to help develop and assemble these vehicles.

Chrysler said that complex would produce more than 20,000 vehicles a year and would be functional by 2010.

The Department of Energy has designed initiatives to speed up the development and manufacturing of electric vehicles and plug-in hybrids, which includes applications for matching funds.

Chrysler has been operating in bankruptcy since April 30.

The automaker plans to sell its most valuable assets to a new company owned by the U.S. and Canadian governments, Chrysler’s union and Italian car maker Fiat SpA. A judge is expected to rule on the proposed plan later this week.

Additionally, U.S. President Barack Obama last week announced tough new fuel economy standards for automakers.

Chrysler had the lowest fleet mileage of any of the major U.S. automakers as of 2007, when the company was still part of German automaker Daimler AG. That same year it also set up its ENVI unit to develop fuel-saving vehicle technology.

The new vehicles Chrysler plans to develop include the Dodge Ram 1500 plug-in hybrid, the Chrysler Town & Country plug-in hybrid and the Chrysler Town & Country electric vehicle.

Some $365 million for a national demonstration fleet of more than 365 test vehicles for select customers and partners would also be a part of the proposed plan.

Chrysler executive vice president for product development Frank Klegon said the plan would accelerate the company’s efforts to develop and manufacture electric and plug-in hybrid electric vehicles.

He suggested it would also reduce the amount of time it would take to get these vehicles on the road.

Hybrid plug-in vehicles have both a battery plus a conventional gasoline-powered engine
Source:RedOrbit.com