Sept. 23 (Bloomberg) -- Chrysler LLC, seeking to shed its image as a producer of fuel-guzzling trucks, plans a full line of plug-in electric vehicles and will sell a battery-powered auto in its home market in 2010.

About 100 test vehicles will be used in government and business fleets next year, President Tom LaSorda said today after Auburn Hills, Michigan-based Chrysler showed three prototypes, including an all-electric sports car.

Delivering an electric model in 2010 would be a sign of engineering strength after Daimler AG sold money-losing Chrysler last year. Building durable batteries has been a sticking point for General Motors Corp. and Toyota Motor Corp., which have several years of lead time over Chrysler in electric autos.

``I believe Chrysler can do this, at least at a scale above a pure demonstration but below full-scale production,'' said Brett Smith, an analyst at the Center for Automotive Research in Ann Arbor, Michigan. Chrysler's strategy is to adapt existing models for electric drive, he said.

Unlike hybrids such as Toyota's Prius, which is propelled by a gasoline engine and an electric motor, Chrysler's cars just use electricity to turn the wheels. The electric Jeep Wrangler and Chrysler Town & Country minivan displayed today would have an onboard engine to recharge the batteries.

``We are well ahead of where people think we are,'' President Jim Press said at the event. ``Perhaps that's because we haven't tooted our horn up till now.''

Bid for Profit

Electric vehicles are part of Chief Executive Officer Robert Nardelli's plan to return Chrysler to profit for parent Cerberus Capital Management LP. Chrysler depends on light trucks for 72 percent of its sales, the most among domestic automakers, and is suffering from dwindling demand as fuel prices rise.

The electric Wrangler would be able to travel 400 miles on 8 gallons of gasoline and have an initial electric range of 40 miles, and the minivan would have similar capabilities, Chrysler said. Plug-ins also can be charged at household outlets.

Chrysler wouldn't say which of the three prototypes would reach showrooms in 2010, or when subsequent electric models would be introduced. An entire line of electric vehicles would be available by 2019, Chrysler said. A car model will be sold in Europe after 2010, LaSorda said.

The test vehicles, which Chrysler allowed reporters to drive today, can't reach the company's mileage targets.

The unveiling came a week after crosstown rival GM displayed the production version of its plug-in Volt, which the Detroit-based automaker says will have an electric range of 40 miles before a gasoline engine recharges the batteries.

Analyst's Surprise

With 2008 U.S. sales down 24 percent, Chrysler's ability to muster the cash and technical resources to build a competitive electric vehicle is surprising, said Aaron Bragman, a product analyst at Global Insight Inc. in Troy, Michigan. The automaker formed a new unit for electric vehicle development in 2007.

``How they have gone from creating this division less than a year ago to a proof of concept car is beyond me,'' Bragman said in an interview yesterday.

Development of the electric vehicles was under way well before Daimler sold most of the company to Cerberus, LaSorda said. To save money and time, Chrysler focused on developing only the power supply and motor, not on creating an entirely new underbody as GM has done with its Volt.

Two vehicles, the minivan and the Wrangler, are identical to current models except for the power plant.

`Different Beasts'

``They will be very different beasts,'' analyst Smith said of Chrysler's autos and GM's Volt. ``One is going to be built from scratch, the Volt, and the other starts from an existing vehicle.''

The test vehicles use lithium-ion battery packs. Chrysler also is working with General Electric Co. on a more advanced battery system that isn't likely to be used in the first versions of these vehicles. While Chrysler has a technology- sharing arrangement with Daimler, the German automaker isn't involved in the new models' development, LaSorda said.

Pricing will be ``competitive,'' LaSorda said, without giving details.

The sports car, built on underpinnings from the U.K.'s Group Lotus Plc, would likely be sold for less than $100,000, said Frank Klegon, product development chief. The prototype reached 95 miles per hour on a short test track drive at Chrysler's headquarters at today's event.

Klegon said the cars would have to be produced in high volumes to make sense. He said Chrysler hasn't set an initial output target for the first electric model.

Nardelli renewed his push for Congress to approve $25 billion in low-interest federal loans to help automakers develop more fuel-efficient autos, saying the money is needed to ensure that Chrysler can build the new models quickly and in quantity.

To contact the reporter on this story: Mike Ramsey in Auburn Hills, Michigan, at mramsey6@bloomberg.net

Last Updated: September 23, 2008 15:01 EDT