Chrysler Selling Electric Vehicle Division

Chrysler announced the sale of its Global Electric Motorcars (GEM) subsidiary, makers of the all-electric neighborhood vehicles.

Chrysler reached a deal with Polaris Industries, Inc., makers of snowmobiles and ATV’s, to acquire the GEM division. Neither company has released details on how the sale will affect Fargo, North Dakota-based GEM or its network of more than 100 dealers worldwide.

GEM has been in operation in 1998 when they released its first 2-passenger vehicle. Two years later, Chrysler acquired GEM and looked to the small company to expand its Zero Emissions Vehicle (ZEV) development.

Polaris Industries recently reported record earnings for the first quarter of 2011. Management reported sales of $537.2 million and net income of $47.3 million for the quarter compared to $361.7 million and $19.8 million in the first quarter of 2010. For the full year 2011 management expects sales to increase 17%-20% compared to 2010.