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United States carmaker Chrysler started off the week talking about the road ahead, laying out plans for three new electric vehicles and saying how it had no option in a shape-shifting automotive world but to develop such drivetrains.
Chief executive officer Bob Nardelli said the company faced "gut-wrenching" decisions if the US Federal Government did not approve a loan package to help Detroit's three major carmakers develop affordable electric propulsion technology.
He talked of staff layoffs and production capacity cutbacks if the aid didn't come through. By week's end Nardelli was happier. The US House of Representatives had voted 370 to 58 to approve a broad spending bill that gives carmakers and suppliers access to US$25 billion ($36 billion) in low-interest federal loans to retool plants to build more fuel-efficient vehicles.
The loan programme represents unprecedented government involvement in the US automotive industry - far exceeding loan guarantees for an ailing Chrysler Corporation back in 1979 and continuing federal support for research into vehicle technology.
Nardelli shrugged off criticism that Chrysler delayed announcing its electric vehicle programme until Congress was smack in the middle of debating the loan package.
It was a coincidence, he said. Chrysler's electric vehicles division was developing the prototypes long before Cerberus Capital Management LP bought 80.1 per cent of Chrysler from Daimler AG in August 2007.
Then things got interesting. Hours after Congress had approved the load deal, Cerberus executives confirmed they had approached Daimler AG about buying the German company's remaining 19.9 per cent stake in Chrysler Holding LLC.
Daimler officials also confirmed the talks. A Cerberus spokesman said all industrial ties between the two companies would continue even after a potential sale.
Private-equity firm Cerberus paid Daimler AG US$7.4 billion for the 80.1 per cent of Chrysler. Chrysler Holding encompasses Chrysler LLC, the carmaker, and DaimlerChrysler Financial Services Americas LLC, which goes by the market name of Chrysler Financial.
Both the automotive and financial companies would be included in a transaction. The move got Wall St talking. "It's still very early to tell why this is happening," said Aaron Bragman, an analyst at Global Insight.
Bragman said it was unclear what had prompted the sale talks between the two Chrysler stakeholders, adding it was possible Daimler AG had decided to cut its losses or was taking advantage of an unpublicised provision of the contract.
"Maybe it's a prelude to Cerberus taking total control before a sale to a third party," Bragman said. "We will just have to wait and see."
Daimler AG has lost money on its stake in Chrysler. In July, Daimler reported it had lost roughly US$515 million on its Chrysler stake during the first quarter of 2008.
The two companies kept up several industrial ventures after the divorce. Daimler makes Dodge Sprinter cargo vans, which are built in Germany and finished in Ladson, South Carolina. They also jointly operate Beijing Benz-DaimlerChrysler, which makes Chrysler 300C and Sebring sedans in China.
Chrysler and Daimler are also joint venture partners, along with BMW and General Motors, in the Hybrid Development Centre that has developed two-mode hybrid propulsion systems. Chrysler already has a pair of two-mode hybrids on the US market, the Chrysler Aspen and Dodge Durango Hemi Hybrids.
Its executives say the company will eventually equip all versions of its vehicles with some form of electric power. Product development vice-president Frank Klegon believes that by 2020, more than 50 per cent of cars sold in the US will have electric powertrains.
Chrysler's strategy is similar to Toyota's but contrasts with GM, which is concentrating on specific vehicles like the Chevrolet Volt plug-in hybrid, planned for 2010.
Nardelli said Chrysler's decision not to design all new vehicles was deliberate. "We elected to put our money and resources into the technology and not into the platform and body," he said.
Said Klegon: "As any new technology comes out, there is a cost. Our goal is to work with battery suppliers to keep the cost down."
Chrysler has made no decision on where it will make its electric vehicles but will apply the technology to front-wheel drive, rear-wheel drive and all-wheel drive.
The three prototypes are the all-electric Dodge EV sports car, developed in partnership with Britain's Lotus Cars; the Jeep EV, a Wrangler-based extended-range vehicle; and the Chrysler EV, an extended-range vehicle based on the Voyager people-mover.
The Dodge EV sports car would be based on the Lotus Europa chassis and powered by a lithium-ion battery pack with a range of about 230km on a full charge. Chrysler says it would cost less than the US$109,000 Tesla sports car, which sits on a Lotus Elise chassis.
The Wrangler and Voyager would have an all-electric range of about 70km, the same as the Chevrolet Volt. Both would use a small-capacity petrol engine to power a generator to make electricity for the electric motor, similar to the way the Volt works.
But the Chrysler engine is a tiny 900cc, or about the size of a motorcycle unit. Doug Quigley, Chrysler's product engineering executive for electric powertrains, said the size of the engine could be scaled up or down.
The performance of the electric version of the Voyager would not suffer under petrol power, he said, adding that the vehicle would get around 5.6 litres/100km (50mpg) while emitting fewer CO2 emissions.
Analyst Bragman said Chrysler "stunned" the industry with its electric vehicle initiative.
"Perhaps the best-kept secret in the automotive industry, Chrysler's electric car bombshell is an attempt to prove to the public and media that the company is indeed working on future vehicles, and that it still has life left in it," he said.
Chrysler in New Zealand and Australia are saying the same thing. Both countries launched the Dodge Journey this week, claiming the all-American seven-seater with its trademark Dodge Ram head in the grille "takes on the practicality of a people mover, the flexibility of an SUV and the overall fuel efficiency of a passenger car".
There are three models in both markets, all front-drivers with six-speed gearboxes: the Journey SXT, Journey R/T and Journey R/T CRD. An all-wheel drive variant is available in the US only. Its absence in the Downunder line-up strains Chrysler's claims of "SUV flexibility". Almost all SUVs have four-paw traction.
The Journey is based on the Dodge Avenger/Chrysler Sebring platform. The line-up starts with the SXT at a competitive $39,990 and the better-equipped R/T at $45,990.
Both models are powered by a 2.7-litre V6 petrol unit developing 136kW at 5500rpm and 256Nm at 4000rpm and mated to a conventional six-speed gearbox.
The V6 engine is also used in the Avenger and Sebring sedans. Chrysler claims town and around fuel economy of 10.3 litres/100km (27.4mpg) and CO2 output of 246g/km.
The top-line R/T CRD retails at $51,990 and uses a 2-litre turbodiesel engine putting out 103kW and 310Nm and mated to a new dual-clutch claimed to deliver 6 per cent better fuel economy than a conventional automatic. One clutch drives the odd-numbered gears and reverse, while the other clutch drives the even-numbered gears.
The 2-litre engine is a Volkswagen unit also used in products such as the Chrysler Sebring, Dodge Caliber and Jeep Patriot and Compass. Chrysler reckons it's good for combined economy of 7 litres/100km (40mpg) and CO2 output of 186g/km.
The Journey is a tall-riding wagon measuring 4888mm in overall length, 1878mm in width and 1745mm in height. Kerb weight ranges from 1750kg to 1785kg, and the Journey has a maximum braked towing capacity of 1600kg.
It is built on a monocoque chassis with all-independent suspension comprising MacPherson struts up front and a multi-link set-up at the rear.
It comes with an extensive list of standard equipment, an underfloor storage compartment, theatre-style second-row seats flip and slide, a 50/50 split third-row seat with reclining seatbacks and an in-floor storage bin behind the rear seats.
The rear doors open 90 degrees for easier access, and the front passenger seat also flips forward for carrying long loads. Tie-down loops are supplied in the cargo area and there are four 12-volt power sockets.
The Journey goes on sale here later next month. Standard safety equipment includes multi-stage twin front airbags, front seat-mounted side airbags, three-row side curtain airbags, traction/stability control, an anti-rollover function dubbed Electronic Roll Mitigation (ERM), trailer sway control and an anti-lock braking system.
"Offering Journey to the New Zealand market was an easy decision - seven seats, six airbags, stability control, automatic transmission and Dodge good looks are all standard," says Chrysler NZ general manager David Smith. "This is a unique vehicle that will appeal to consumers who want seven seats today - not tomorrow."
