GM - Chrysler merger. Why?

Focused on saving jobs?

For a while analysts speculated that GM was interested in Chrysler because Chrysler had about $11 billion in cash that GM very much needed. However, since it will take about $10 billion of tax payer money to merge Chrysler into GM, where's the gain? Why not just give them the money to work through the credit crisis independently?

None of the Big 3 have demonstrated that they are yet ready to compete in the new automotive world. The Chevy Volt is the only thing for the Big 3 to hang their hat on, but the Volt still has not been proven in the real world , and it won't be for more than 2 years. Moreover, GM's new small car hope, the Chevy Cruze, is probably going to be delayed.

Thus, how does a merger with Chrysler make GM more competitive? How does it make GM's products more competitive? While this merger might help save US auto jobs - a noble goal - will it make the US auto industry any more successful? And, is trying to save jobs on the back of a yet unproven business model wise?

Chrysler CEO warns of battery dependence

The battery-powered EcoVoyager

Chrsyler CEO, Bob Nardelli, told CNBC TV this evening that "great synergies" existed for automotive industry consolidation because of the financial environment, but he would not discuss a possible merger with GM.

Nardelli also claimed that new CAFE standards had created a "tremendous financial burden" on the automaker, and that it was important that America didn't turn foreign oil dependence into dependence on foreign batteries.

While I'd rather be dependent on foreign batteries than foreign oil any day of the week, if Detroit had taken some leadership on hybrid cars, this would be a non-issue.

Chrysler's EVs more developed than Volt?

A Dodge plug-in concept at NAIAS 2007

Has Chrysler killed Chevy Volt hype?

Since the Volt debut in 2007, GM has reiterated over and over how they were accomplishing something almost inconceivable. Concept to reality in little more than 3 years. And, not just your standard concept. A range extended electric vehicle.

Yet, all the while, Chrysler has been quietly keeping pace. Of course, that statement isn't fully true. Chrysler's plug-in vehicles probably won't be launched as unique plug-in only models, such as the Volt. So, Chrysler's results are not as impressive.

Nevertheless, Chrysler's quick pace demonstrates that plug-ins aren't that hard to build. The real issue for both Chrysler and GM is, as it has always been, can these vehicles be powered with reliable, cost effective batteries that can be economically produced in great numbers? Unfortunately, that still won't be known even in late 2010 when these vehicles launch.

Chrysler to plug-in into the future in 2010

A wrangler plug-in vehicle

Behind the Wheel has a great piece this morning on Chrysler's new plug-in vehicles. Yesterday, Phil LeBeau was able to drive a couple of Chrysler plug-in prototypes, such as the Jeep Wrangler plug-in hybrid that functions very much like GM's Chevy Volt. LeBeau was also able to test drive the Dodge EV sports car, an all electric vehicle that left LeBeau impressed.

Even more surprising, Chrysler intends to roll out some of these vehicles by 2010.

Check it out. There is supposed to be a link to view all these test drives, but it wasn't working when I made this post.

Chrysler to update dealers on plug-ins

The Dodge Zeo - One of three plug-in concepts Chrysler showed in Detroit

Next week, according to reports, Chrysler will provide dealers with "insight into business strategies" for the future that includes Chrysler's next generation plug-in hybrid vehicles. No further details are available.

While interesting, it seems hard to believe that Chrysler could be anywhere close to where GM is today with such electric vehicles, which means many more years for Chrysler to even catch up to GM.

New Chrysler hybrids and EVs coming

The EcoVoyager Concept at NAIAS

Without giving any details, Jim Press told reporters today that Chrysler will launch 7 major models in 2010. Press also stated that Chrysler was, and will continue to, work on electric drive vehicles and that such vehicles would make their way to market not long after 2010.

Last week, Chrysler announced that the Envi Unit had been quietly working on new hybrid cars and electric vehicles, however, they also noted one vehicle looked good for off-roading. Thus, it's hard to know if these are just niche vehicles focused on attaining EV hype, or if Chrysler is serious about making a major move to electrification in the next few years.

Chrysler, Cherokee Hybrid and the future

Chrysler's next big hybrid move?

Chrysler is on the verge of launching a few large hybrid SUVs. Great news, right? Not when production is in numbers that will barely show up on Chrsyler's monthly sale's sheet. Thus, to learn that Chrysler is also going to develop a Jeep Grand Cherokee hybrid for 2011 leaves me feeling, well, unimpressed.

Doesn't Chrysler need to take a much more serious stab at fuel economy to brighten its future? Why not do something no other US automaker has yet done, such as announce a unique, conventional hybrid car to challenge the Toyota Prius?

Instead, it's just another BIG hybrid SUV. So original. So unexpected.

Isn't it time for Chrysler to distinguish itself from the pack?

Chrysler: Every car will be a hybrid

The Dodge ZEO concept at NAIAS

Echoing GM's Rick Wagoner at NAIAS, Chrysler's Jim Press told reporters at the Washington Auto Show that alternative fuels should be "the auto industry's top priority".

"Alternative technologies have to come first. It may squeeze our ability to invest in other things that may be important, but we can't afford," said Jim Press, who is also Chrysler's vice chairman.

Thus, Press claimed that in addition to alternative fuels, "You will see electric drive and hybrid technology in virtually everything. Eventually, every car will be a hybrid at some point,"

Chrysler to debut 3 hybrid concepts at NAIAS

One of two Chrysler hybrids at the LA Auto Show

Chrysler debuted two hybrid vehicles at the LA Auto Show: the Dodge Durango hybrid and the Chrysler Aspen hybrid.

So, what will they debut at the North American International Auto Show?

How about 3 new hybrid concepts. At least one will use hydrogen, another will be some kind of plug-in hybrid, and the other a diesel hybrid. Check out AutoWeek for some sketches.

Press brings hybrid attitude to Chrysler

Stealing Press from Toyota might be Chrysler's smartest move so far

"Every car will be impacted by advances in power-train," Chrysler's Jim Press said in an interview with The News. "Plug-in hybrid, diesel hybrid, fuel-cell hybrid, a petrol hybrid they're all in the mix."

Press didn't provide a timeline for the above changes, but he did indicate that Chrysler was accelerating its efforts towards this new hybrid vehicles vision.

Chrysler creates new hybrid / electric drive division

Will create a hybrid vehicle from scratch

Chrysler has created a new division called Envi, focused on electric drives and advanced-propulsion technologies. For its first task, Envi will focus on hybrid vehicles, creating a new unique hybrid, such as the Toyota Prius.

"The creation of Envi allows us to focus on the development of a new generation of environmentally responsible Chrysler, Jeep and Dodge vehicles," said Robert Nardelli, Chrysler's chairman and CEO, in a company announcement. "Under Lou's leadership, Envi will develop electric-propulsion vehicles that will provide customers with more fuel-efficient vehicle options."

"Envi will operate as a 'start-up' with an entrepreneurial environment," said Thomas LaSorda, Chrysler president, in a corporate announcement. "The organization is empowered to leverage the vast resources within Chrysler to develop appropriate solutions quickly."

Can Press bring some kaizen to Chrysler?

Not enough: Hybrid SUVs?

Now that Jim Press has left Toyota to become the Vice Chairmen and President of Chrysler, I have some hope that Press can bring some kaizen, or a constant strive towards efficiency, to Chrysler.

Press witnessed the birth of Toyota's hybrid cars, and he has been a huge advocate of the Toyota Prius. Let's hope Press can help Chrysler realize that SUVs and trucks cannot be the sole source of Chrysler's future success, even if they are hybrid SUVs, such as the Aspen hybrid pictured above.

Wanna make a big move Mr. Press? Make Chrysler the first U.S. automaker to mass produce a hybrid car that compares with the Prius.

Foreign oil dependency equals freedom? Is Chrysler un-American?

Yes, Edwards is a SUV-driving hypocrite, still...

"Last time I checked, America is about choice," wrote Jason Vines, Chrysler Group's vice president of communications, on the company's TheFirehouse.biz blog regarding the statement made by John Edwards for Americans to give up SUVs. "This kind of reminds me of book burnings of the past. Shouldn't a president try to preserve freedoms? So let's lay off any suggestions of vehicle choice by government committee. Trabant, anyone?"

What a joke. Book burnings? Preserving freedom?

Let's be honest, Chrysler doesn't care about freedom, it cares about profit margins. Chrysler has helped sell out America for decades, so let's leave the Patriotism out of it.

Besides, how does foreign oil dependency increase freedom? Finish: Foreign oil dependency equals freedom? Is Chrysler un-American?

Chrysler's advanced powertrain moves

Is the Aspen hybrid good for Chrysler's future?

Last week Chrysler released a press release announcing how advanced powertrains would play an "essential role" in the new Chrysler's ability to meet customer expectations for "quality, performance, and fuel economy".

Flex fuel, clean diesel, and hybrid vehicles were touted, which is good. Yet, all of these new powertrains are almost exclusively focused upon Chrysler's biggest vehicles, such as 5.7 liter Hemis.

Amidst the mortgage meltdown and high energy prices coupled with increasing Middle East turmoil, can the future for Chrysler really be so successful it if so focused on its largest vehicles? Certainly, hybrid technology, or clean diesel technology, can make these gas-guzzlers more fuel efficient, but at a greater expense when consumers have less to spend on automobiles.

Obviously, gas-guzzlers are Chrysler's bread and butter, and the automaker must continue to make such vehicles in order to survive, particularly in the short term. Nonetheless, isn't it time for Chrysler to make a dramatic push in a completely new direction?

Can Hemis really be the foundation of Chrysler's future success?

Chrysler commits to hybrid vehicles

Push towards fuel economy

Well, I was right.

According to Reuters Chrysler has now confirmed that "it would roll out new hybrid vehicles, streamline its cars and trucks and introduce more diesel engines in a bid to improve the fuel economy of its product line-up."

Chrysler's 2008 hybrid vehicles, much like GM, will probably focus on large SUVs - an ideal platform for the dual mode hybrid powertrain that the two automakers developed together. Thus far, Chrysler has confirmed the Dodge Durango hybrid and the Aspen hybrid.

Hopefully, we'll hear about even more Chrysler hybrids later today.

Chrysler to make hybrid announcement?

Coming soon the Chrysler Aspen hybrid

According to the DetroitNews, Chrysler will be making a major powertrain announcement today. The only major powertrain announcement that Chrysler could make, in my opinion, is a hybrid powertrain announcement. While Chrysler might be announcing the launch of a series 10 cylinder vehicles, let's hope its about hybrid vehicles.

Is the U.S. on the wrong end of hybrid technology?

I'm glad it's NOT powered by a Hemi

Toyota has received an incredible amount of green buzz because of the Toyota Prius. While some argue that Toyota isn't deserving of all this praise because they still make far more gas guzzlers than hybrid cars, Toyota definitely made a statement about the future with the Prius.

On the other hand, if Toyota had made its first hybrid a more power-focused hybrid, such as the Lexus RX 400h, then Toyota's hybrid efforts would have been largely ignored.

Yet, power hybrids are all that seem to be coming out of Detroit, except for the Ford Escape hybrid. Chrysler's first hybrids will include huge Hemi engines. GM's first dual mode hybrids will be large, powerful gas guzzlers, such as the GMC Yukon hybrid. Yes, these hybrids will offer significant improvements in fuel economy, but they will still use a lot of fuel.

While I realize that the big truck segment is very important to Detroit, are these hybrids going to change Detroit's image? I doubt it. Without a Prius contender I just don't see Detroit's hybrid efforts offering much help to U.S. automakers until at least the Chevy Volt - and that's just too far into the future.

Chrysler announces 2008 hybrid vehicles

Chrysler adds Aspen to hybrid lineup

Move over Durango, here comes the Aspen. In addition to the Dodge Durango hybrid, Chrylser has announced that the 2008 Aspen will also be available as a hybrid.

Overall, Chrysler claims that both hybrid vehicles will offer a 25 percent overall increase in fuel economy. In city driving, however, both hybrids could achieve as much as a 40 percent increase in fuel efficiency.

While that's great news for SUV fans whom want to increase their fuel economy, how long do car fans have to wait for a U.S.-manufactured Toyota Prius contender?

GM, Chysler partnership: Forget the SUV and do a hybrid

Can't we start leaving these gas hogs in the past?

GM and Chrysler have been working together on the dual mode hybrid powertrain for the last several years, yet either maker has yet to offer a dual mode hybrid vehicle for sale. Instead, what is the latest big news - other than takeover talk - regarding a GM and Chrysler partnership? A gas-guzzler to rival the Suburban. Sounds like the perfect solution to both automaker's problems! How about some serious hybrid cars guys?