The guys at Cerebrus seem to be between a rock and a hard place. Need fuel misers fast, no money to develop fuel misers for the US market. One of the dealers has the smartest quote in the article:
"I don't know if hybrid is going to be the magic wand," Galeana said. "I think we're certainly going to see diesels and other things that will be just as meaningful as a hybrid car and maybe more, as far as functionality and real-life usage."
He said the company will be better off by 2010. "If we're able to get some decent European diesels in the mix, I think that will help us a great deal."
Chrysler plans electric vehicles, could be ready in 3-5 years
http://www.freep.com/apps/pbcs.dll/arti ... /807140325
BY TIM HIGGINS • FREE PRESS BUSINESS WRITER • July 14, 2008
Chrysler LLC's answer to the much-anticipated Chevrolet Volt could be three to five years away, the Free Press has learned.
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The Auburn Hills automaker launched a special division within the company last fall called ENVI -- pronounced like "envy" -- to bring electric-drive vehicles and related advanced-propulsion technologies to market.
"ENVI is currently developing electric vehicles for the three Chrysler brands and is planning on product within three to five years," Nick Cappa, a Chrysler spokesman, told the Free Press in an e-mail.
General Motors Corp. has promised a breakthrough electric-drive vehicle -- commonly referred to as a plug-in hybrid -- called the Chevy Volt by 2010.
The move by Chrysler comes as some dealers quietly question why Chrysler is not stepping up efforts to bring more hybrid technology to market quicker in light of $4-a-gallon gasoline and tanking SUV and truck sales.
Some dealers tell the Free Press they've been told not to expect the bulk of the automaker's lineup to have a hybrid option in the near future.
Alan Helfman, vice president of Helfman River Oaks Chrysler Jeep in Houston, said he has been told not to expect many hybrid offerings before 2012. "It's lamenting. ... You don't have to have every car -- not everyone wants a hybrid -- but it's obviously a profound proportion of the industry right now," he said.
Another dealer, who didn't want to be named because product plans are secret, echoed those thoughts: They "need to put that hybrid in."
Around September, Chrysler will begin to offer two hybrids: the Chrysler Aspen and Dodge Durango -- both SUVs and both priced below GM's similar models.
GM and Chrysler teamed up with Mercedes-Benz and BMW to develop a two-mode hybrid system.
Chrysler, beyond announcing plans to have a Dodge Ram hybrid in its 2010 model year, remains mum on hybrid plans, other than to hint that more is to come.
A market forecast by J.D. Power and Associates predicts that Chrysler will offer a hybrid option with the Dodge Grand Caravan next year and with the Dodge Avenger car and Journey crossover in 2013.
One independent dealer told the Free Press that Chrysler officials have said it could be as long as 2012 for a Jeep Grand Cherokee.
Paul Lacy, an industry analyst with Global Insight, however, predicts Chrysler will be marketing a hybrid version of the Jeep Grand Cherokee in the 2010 model year as part of the automaker's response to recent federal legislation that requires it to make more fuel-efficient vehicles.
"As soon as the energy bill starts to take effect, they'll pound in on these things. They won't have a choice," Lacy said. He also said he expects a Dodge Charger hybrid by 2011.
Private equity firm Cerberus Capital Management acquired majority control of Chrysler from now-Daimler AG last August. Since then, Chrysler has undergone dramatic changes as it races to remake itself as a smaller company and deal with a worsening U.S. auto industry.
Chrysler's U.S. sales are down 22%, hurt particularly by its truck-heavy lineup. The privately held automaker has also had to battle speculation about its financing, issuing statements to deny bankruptcy fears and to say it is beating financial goals.
"The big thing for Chrysler is money. It's a cost thing. ... They don't have any," Lacy said of why Chrysler can't rush hybrids to market quicker.
"They have been involved in a cooperation with GM ... but they haven't really made any commitments. They've also put a lot of money into their up-and-coming diesel lineup."
The automaker said pulling forward hybrid models is no simple matter. "There's a full plan in place for hybrids at Chrysler," Cappa said.
Chrysler has given few details about what its ENVI efforts will produce. "ENVI is going to play a lot deeper role than a lot of people think going forward," Cappa said.
"If you want to go ahead and make everything a full hybrid system, fine, but what if you can turn everything into a range-extended vehicle and take it beyond the 2020 campaign for 35 miles per gallon?" Cappa asked. "The new technology ENVI is developing could do that."
Last year, Chrysler announced plans to spend $3 billion to develop more fuel-efficient powertrains. A big part of that announcement has been the development of a new V6 engine, axle and dual-clutch transmission, all of which Chrysler executives promise will deliver fuel savings.
And there are Chrysler's diesel efforts. The new Dodge Ram is expected to have a diesel option to introduce after 2009.
Carl Galeana, vice president of Van Dyke Dodge in Warren, said he's frustrated about the hybrids but hopes Chrysler's diesel plans will help.
"I don't know if hybrid is going to be the magic wand," Galeana said. "I think we're certainly going to see diesels and other things that will be just as meaningful as a hybrid car and maybe more, as far as functionality and real-life usage."
He said the company will be better off by 2010. "If we're able to get some decent European diesels in the mix, I think that will help us a great deal."
Contact TIM HIGGINS at 313-222-8784 or thiggins@freepress.com.
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