When reading this article, I couldn't help but notice: batteries from Korea, plant in Mexico, and head office in Detroit. Trying to be non-judgemental. Can someone explain "why?"....

SB LiMotive to supply battery packs

for electric Fiat 500

Alisa Priddle / The Detroit News

SB LiMotive, a joint venture of Samsung SDI and Bosch, announced today that it will supply the battery packs for the electric Fiat 500 that will be launched in the United States in 2012.

The battery supplier replaces the original supplier, A123 Systems of Livonia, which pulled out of the deal earlier this year, saying it expected a competitor to provide the batteries for a lower price and that the volumes planned had been "significantly diminished."

Fiat SpA formed a managing partnership with Chrysler Group LLC in June 2009. Chrysler is taking the lead on electric vehicles for both automakers.

Chrysler is building a North American version of the tiny Fiat 500 in one of its plants in Mexico for sale in the United States starting next year.

The electric version is to follow in 2012, and will be the first electric vehicle in Chrysler's lineup.

The Fiat 500EV powertrain has three main systems: an electric motor, advanced lithium-ion battery and a control unit to mange the power flow.

Chrysler is overseeing development of the vehicle and the powertrain engineering in Auburn Hills.

The battery cells will come out of Korea and the battery packs are developed in Orion, Mich. The battery packs will be assembled in Springboro, Ohio.

"Chrysler indicated that SB LiMotive earned this business because we can supply high-quality lithium-ion battery packs in the quantities needed on-time to the market," said Joachim Fetzer, executive vice president of SB LiMotive, in a statement.

"Additionally, SB LiMotive has the technical expertise Chrysler will require as it launches this important program. Our established global footprint was a further strong point in our favor. We look forward to partnering with Chrysler in bringing this exciting new vehicle to market."

SB LiMotive was established in September 2008 by Bosch and Samsung SDI. Samsung has battery expertise, and Bosch is Germany-based automotive supplier with experience integrating lithium-ion technology into vehicles as part of its work with hybrid and electric drive technology.

Chrysler has not announced volumes or pricing for the electric Fiat 500.