Following Chrysler's new "Let's Refuel America Gas Card" announcement, the critics spoke out quickly. While a guaranteed gas price of $2.99 a gallon for three years will certainly appeal to some people, other incentives might offer buyers better savings. To deal with the media fallout and to clarify a few questions about the card, Chrysler's media-only blog, The Firehouse, has tackled the topic with a post discussing the deal and the media coverage.
Stuart Schorr, the senior manager of sales for Mopar and Dealer Communications, wrote that there have been hundreds, possibly thousands, of stories about the incentive around the country (three of these videos are available after the jump). A TV station in Wisconsin calculated possible gas card savings to the customer of $8,760. Of course, they used gas prices of $6.65 a gallon to get that number. Also, Chrysler will be sending out official "Let's Refuel America" banners to dealerships in the coming days. Schorr also provided a list of ten questions (and answers) they've been hearing about the gas card, including one we've heard from our readers about what other incentives, if any, are available to people who sign up for the card. Check them out after the jump.
GEM vehicles certainly aren't flashy. They don't go more than 25 mph, they look kind of goofy, and they're stuffed with old-fashioned lead acid batteries. In fact, GEM vehicles embody the "golf cart aesthetic" more than any other NEVs that regularly make an appearance on our little blog here. Still, there's something worth noting about Global Electric Motorcars: it's the Chrysler brand/subsidiary that has growing sales. Automotive News (subs req'd) has a good story that takes a look at how Chrysler is benefiting due to keeping the GEM subsidiary following the Daimler-Chrysler split last year. GEM has sold 37,000 Neighborhood Electric Vehicles since getting started in 1998 and, while the company doesn't announce sales figures, the company is profitable. With Chrysler trying to gin up sales through gas price gimmicks, it's good to see that these zero-emission niche vehicles are going strong. The potential for Chrysler to move GEM from the NEV category into a company that builds vehicles that are capable of higher speeds exists, particularly through Chrysler's ENVI. A GEM Zeo, anyone?
If you're trying to conserve fuel, making said fuel cheaper doesn't help the cause. If you're trying to sell cars, making the stuff they run on cheaper might help. But one thing is for certain, not everyone is a fan of Chrysler's new "Let's Refuel America Gas Card."
As we calculated this morning, the incentive will likely only save a driver a few hundred bucks a year. As ABG reader Dan pointed out in a comment on the original post, buyers need to give up any other incentives currently available in order to get the gas card, and some of those deals are much bigger than $1,200 (the gas plan is in effect for three years). Automotive News is reporting that the Union of Concerned Scientists has got their own phrase for the plan: a "cynical deal." Here's the kicker, the Union's statement continues:
But a mere 3-mpg boost would yield the same savings over the 15,000 miles per year typically driven in the first three years of ownership. Over the lifetime of a vehicle, such a fuel economy increase would save drivers more than $3,000. It wouldn't stop saving drivers money after just three years.
Still, Suzuki knows a way to attracts potential buyer eyeballs when it sees one, and has announced its own fuel program: buy a new Suzuki before the end of June and get three months of free - totally free - fuel. Of course, if you think $400 a year isn't a good reason to buy a new car, don't bother doing the math on three months of no cost fuel. The automakers are playing on fears of high gas prices and hope you can't, or don't, do the math.
Ever hear of Pricelock? It's a service for fleet operators to purchase gas in bulk at a set price to buffer the company budget from rising fuel fluctuations. Chrysler thinks that new car buyers should be able to participate as well, through the company's new "Let's Refuel America Gas Card."
Chrysler announced a three-year $2.99 price guarantee on fuel costs to anyone who buys a new Chrysler, Dodge or Jeep vehicle between tomorrow and June 2. Certain vehicles, like SRT models, Vipers, Crossfires and Sprinters, are excluded. Other limiting factors are that you can only buy fuel (regular gas, diesel or E85) that works in your new car and there's an annual limit based on driving 12,000 miles. So, there won't be a lot of hooking up your friends through this deal. The deal works at any gas station because the savings are taken care through a credit card on file with Chrysler; the fuel supplier charges the full price, and Chrysler pays the difference.
Let's calculate this out. Pretend you're about to buy a PT Cruiser convertible. The EPA says it gets 21 mpg (combined). So, 12,000 miles at 21 mpg is 571 gallons. At today's average gas price of $3.61 a gallon, you'll be saving 62 cents a gallon. During the first year, that's $354. Over three years - should gas prices stay the same (ha!) - you're talking $1,000, easy. Is that enough to make you want to buy a Chrysler? In any case, should prices ever dip below $2.99, nothing will stop you from paying for your gas without using the Chrysler-bound card. Get more details after the jump.
When Nissan introduced the Titan pickup truck earlier this decade, they became the first Japanese Automaker to directly challenge the U.S. manufacturers in the full-size truck segment. Unfortunately for Nissan, the gamble didn't pay off, but the company knows when to stop throwing good money after bad. With sales of only 65,000 a year and no sales outside of North America, it didn't make sense for Nissan to spend money developing a new generation vehicle. The capper on the deal were new fuel economy regulations. Nissan has been trying unsuccessfully for months to line up a supplier of diesel engines for the Titan. The announcement yesterday of the deal between Nissan and Chrysler to swap cars and trucks means the next-generation Nissan pickup will be built off the Ram platform.
It's not known yet if the Nissans will get the hybrid or light duty diesel engines that will debut in the Ram in 2010. Chrysler spokesman Nick Cappa told ABG that GM, Daimler and BMW would have to agree before Nissan could be included in the hybrid program. Since Daimler and BMW don't compete in the segment, and GM and Chrysler could certainly use the extra volume to bring costs down, it seems likely that the Nissan truck will eventually be found with a hybrid system. For the new light duty Cummins diesel, Dodge will probably get a period of exclusivity, but it seems likely that Nissan wouldn't even bother with a truck if they couldn't get a diesel, since everyone else in the segment will have one by 2010.
We knew already that the 2009 Dodge Journey would be receiving a dual-clutch transmission for overseas markets, but Chrysler has just announced that the '09 Dodge Avenger and 2009 Chrysler Sebring will also offer the tranny. Mated to a 2.0 liter diesel engine, both fuel economy and CO2 emissions will improve by about six-percent. Chrysler's dual-clutch transmission is jointly produced by Getrag. One clutch engages the even ratios while the other operates on the odd. Efficiency is increased due to increased mechanical efficiency.
We are hopeful that the American market will get some dual-clutch love from Chrysler after their new transmission plant in Indiana is ready in 2009, though we're not expecting it to be mated to the diesel-four if it does show up on our shores ... we're not that lucky.
Late this afternoon Chrysler and Nissan announced a major product cooperation deal that would allow both automakers to focus on their current product strengths while expanding their lineups with new entries. Beginning in 2010 Nissan will start making a new small car for Chrysler while a year later, Chrysler will start building a new full-size pickup truck for Nissan. The small car will be built to a Chrysler design and will be sold in North America, Europe, and other markets. The truck will be built for Nissan at Chrysler's Saltillo Mexico assembly plant starting 2011 and will presumably replace the current Titan pickup.
Nissan has been looking for a diesel engine supplier for some time for the Titan and this deal will likely allow them to use the new Cummins light duty diesel that is debuting next year. It's not known at this time if Nissan will get a heavy duty pickup out this deal. Another unknown is whether Nissan will get a truck equipped with the two-mode hybrid system that is debuting in the Ram in 2010. Chrysler and Nissan earlier this year announced a deal to sell a re-badged version of the Versa as a Dodge in South America. Another unknown is the fate of the Chrysler-Chery deal to build small cars in China. We'll have more later this evening after a Chrysler conference call.
Update 1: According to LaSorda the Chery discussions and planning are still ongoing and products may still happen badged as Chrysler vehicles. Chrysler feels that at some point they may need more than one small car so potentially both Chery and Nissan based cars could be sold. Update 2: The small car will be built on a Nissan platform with Chrysler styling. The platform is a new platform but Chrysler isn't yet saying what platform it is. It's not the current Versa.
Update 3: No news on the diesels or hybrids. Unfortunately they cut off questions before we had a chance to ask. We'll try to follow up on this one.
As Chrysler gets ready to launch their first hybrids this fall in the shape of the Dodge Durango and Chrysler Aspen two-modes, Hybrid manager Abdullah Bazzi has posted answers to some reader questions over on the Dodge blog. While none of the questions are particularly deep or earth shattering, Bazzi does reiterate that a hybrid version of the Ram pickup is coming in 2010. Although at least one reader would like to see a hybrid version of the new Dodge Challenger, Bazzi says that would depend on making a business case for it.
The likelihood of that happening is pretty slim. Sales projections for the Challenger are only about 40,000 units a year and it remains to be seen how sales will hold up after the demand for the first year's run is satisfied. At the moment all of Chrysler's future product plans are in flux as the new bosses revamp the lineup. Beyond the Durango/Aspen/Ram hybrids and the diesel Grand Cherokee, nothing is certain. Head over to the Dodge blog to read the rest of Bazzi's responses.
French website Leblogauto writers went to the EVER Salon in Monaco and gathered information and pictures from the Citroën Berlingo Venturi, which is one of the two vehicles competing for the French Postal Service (La Poste) contract for suburban delivery EVs.
Although the range isn't that spectacular (60 miles), performance should be enough for postal duties: cargo space and payload remain unchanged from the gas/diesel versions. According to the manufacturers, the vehicle is able to achieve highway speeds effortlessly and can be recharged from a simple power outlet for less than 1 € / 100 km. Being optimistic, the diesel version makes about 7 l/100 km, at 1.30 EUR/l you can do the math. Price range is expected to be between €25,000-35,000.
Click the Jeep for a high-res gallery of the Jeep Grand Cherokee CRD
Currently, every Chrysler, Dodge or Jeep vehicle, with the exception of the Dodge Viper, is being sold in Europe with a diesel engine option. What's more, half of them are able to hit the 35 mile per gallon mark in combined driving. In what may seem like the ultimate slap in the face, they are all built right here in America, but we cannot buy them. All of this information is available here, which is a popular article circulating on Digg. The writer of the article makes the aforementioned points as an argument as to why Chrysler should be able to sell their diesel vehicles here in the states. At this time, only one of Chrysler's diesels, the Grand Cherokee, is being sold here.
One problem stands in the way of the rest of the diesels being sold stateside, and it's a big one: emissions. This is a much bigger problem than the article seems to contend. There is more to the greening of our fleet of vehicles than fuel mileage, and emissions are a very important part of the puzzle. Diesel engines can be made to meet the emissions requirements in the U.S., but they add to the cost of the vehicle. When we add in the rising price of diesel fuel, diesel vehicles can become a tough sell. In the coming years, it is likely that manufacturers will introduce more diesel engines here in the U.S., and the hope remains that as they do, the price of the technology will go down.
The second member of the Two-Mode hybrid partnership to bring a vehicle to the streets following GM's launch of the Tahoe/Yukon hybrids will be Chrysler. The Dodge Durango and Chrysler Aspen Hybrids don't actually go on sale to the the public until later this fall. However, the first "saleable" Aspen hybrid rolled silently off the assembly line at Chrysler's Newark, DE assembly plant on the March 10. So-called saleable units are typically built many months ahead of retail sales and built from production intent parts on production units. These vehicles are generally kept for internal use including durability testing and final validation of hardware and software. These vehicles will also be used for early media drives that will likely take place this summer. The Chrysler hybrids are using the same hybrid transmission used by GM supplied from that company's Baltimore transmission plant. The only difference is the case casting to allow it to interface with the Chrysler V-8 engine.
Here's a nice story about a group of students from the Stockton Unified School District's Weber Institute of Applied Sciences and Technology and their project to convert a 2002 Neon from gasoline to electric. The process took 150 hours, which presented a few problems. "It took a lot of planning. Thinking hurts. Sometimes it gets so frustrating you don't really want to do it. But you think about what it's going to be like and keep going," according to Kevin Ford, one of the students. In the end, they truly enjoyed the project, which took just $6,500 in parts to complete, not including the car. At present, the vehicle is capable of moving about 80 miles from one charge of its eight lead acid batteries. That's a total of 96 volts, which is most likely feeding juice to a DC motor. A cable extends out of the old gas-filler neck. The instructor, Mike Yonan, is thinking of adding some sort of solar charging solution for next year's project. A+ from us.
The initial spawn of the agreement between Chrysler and Chery Motors has made its first tentative appearance. The Dodge Breeze is nothing more than a rebadged version of the Chery A1 but it has apparently turned up on a Chinese forum. The Breeze is not expected to come to the U.S. but will likely be sold in South and Central America. If and when a Chery-built car does make it to the American shores, it will likely be an all-new design developed with Chrysler engineering input.
Chrysler may be slow to the party in introducing production hybrids and electric vehicles, but that doesn't mean they haven't been working on cleaner energy. The company has been cooperating with university researchers on growing biofuel feed stocks on brownfield sites, for example. They have also been growing potential biofuel crops at their Chelsea, MI proving ground as an alternative to grass. The company's latest effort is a wind power project, also at the Chelsea track.
The first stage of the project will take place over the next year and a half at Chelsea with the construction of a 264ft tall test tower. The tower will be used to collect meteorological data that will be analyzed in conjunction with the University of Michigan, North Coast Wind and Power and Washtenaw county. Most wind power projects are built near coastal areas or large flat regions in order capture the most undisturbed winds. This project will look at the viability of wind power at higher altitudes. If the data proves favorable, Chrysler will consider construction of wind turbines on the property while the county will look at adding more capacity in the surrounding area. The Chrysler press release is after the jump.
Since the current LX platform Chrysler 300 along with the Dodge Magnum and the later Charger debuted in 2004, it has had an optional all wheel drive system. Much of the platform hardware of the LX was derived from the previous generation Mercedes-Benz E-Class including that all wheel drive hardware. The AWD system was designed to continuously drive all four wheels all the time and it can be a boon to those who live northern climes. However it comes at a price that includes reduced fuel economy. Driving the front axle all the time costs about 1 mpg compared to the rear wheel drive version. For the 2009 model year, a revised system will now disengage the front axle until excessive slip at the rear axle triggers drive torque to sent to the front. As a result, AWD models will now get the same fuel efficiency rating as the RWD variants.