The application, made in 2008, was aimed at funding the development of future vehicle powertrains, including electromobility. Now under Fiat ownership, the group said it is confident it will still be able to bring competitive, fuel-efficient vehicles and technologies to market as planned.

‘This decision will not impact Chrysler’s ability to achieve its previously announced business plan targets,’ it said.

Chrysler began its three-year, real-world plug-in hybrid trials recently, with a fleet of 140 Dodge Ram test vehicles issued to a variety of local areas chosen for their differing traffic, weather and geographic conditions.

Since the group was formed in 2009, it said it had invested more than $4.5bn and recruited more than 9,400 employees, while replaying U.S. Treasury and Canadian government loans in full, with interest and six years early.

Chrysler isn’t alone in its withdrawal – General Motors pulled out of its $14.4bn ATVM application in January 2011, citing ‘significant improvement in its business performance’ and saying it would not slow down the development of future products.