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Private Chrysler - End of Diesels?

Will a private Chrysler halt diesel development
Posted March 26 2007 09:03 AM by esanchez 
Filed under: Editorials, Diesel Observations, Trend Observations, Passenger Cars

By now, it's essentially a foregone conclusion that Chrysler will be spun off from parent DaimlerChrysler. Whether the new proud papa will be GM or Cerberus, Magna, or some other investment group or consortium, one question remains unanswered. Will the new management put a halt to the company's ongoing diesel passenger-car development?


Whatever presence the re-organized company has in Europe, a diesel offering is almost mandatory, considering diesels account for as much as 60 percent of new vehicle sales in some markets. But the prospects stateside are a little less certain. Currently, diesel passenger car sales are in the single percentage points, and the companies currently offering diesel passenger cars can be essentially counted on one hand. Two fingers to be exact: Volkswagen and Mercedes-Benz.

It will largely depend on how forward-thinking the new management is. If they look at current sales figures, and the nearly non-existent current diesel passenger car market, they will likely pull the plug on any diesel car development in the works. Another big variable is how much they'll want to detach from Daimler. Almost all the passenger diesels on the drawing board for Chrysler Group vehicles are Mercedes-based. Will they seek another partner for diesel development, such as Cummins or CAT, bring development in-house, or simply cancel the R&D program?

Let's hope the company has the foresight to realize that the American market is primed for torquey, fuel-efficient passenger cars, and the nationwide rollout of ULSD fuel is laying the perfect groundwork for a diesel car revolution in the U.S. 

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