xcel
03-11-2007, 11:35 AM
Durango hybrid part of effort to catch up with rival automakers. (http://www.delawareonline.com/apps/pbcs.dll/article?AID=/20070311/BUSINESS/703110308)
http://www.cleanmpg.com/photos/data/501/2006_Dodge_Durango.jpgLuladey B. Tadesse - The News Journal - Mar. 11, 2007
DaimlerChrysler's Dodge Durango hybrid will break new ground for Chrysler and large sport utility vehicles when it debuts early next year.
The Durango hybrid, built in Newark, is Chrysler's first hybrid passenger vehicle in production.
As one of the first large SUV hybrids on the market, the Durango will improve Chrysler's image as the manufacturer of gas guzzling, environmentally unfriendly trucks. Just as Toyota and other rivals have benefited from a greener image garnered by hybrids, Chrysler hopes to reap the benefits of going green.
Auto analysts expect a hybrid engine will perk up flagging sales of the Durango. The novelty of a hybrid Durango alone is expected to draw new consumers into dealer showrooms. Production at the Newark plant will go up, even though Chrysler is expected to produce only 20,000 to 25,000 Durango hybrids a year. The plant assembled 65,954 conventional Durangos last year, and many more than that in previous years.
"It's a big deal for the company," said Brett Smith, auto industry analyst at the Center for Automotive Research in Ann Arbor, Mich. "There isn't the demand for those vehicles there once was, part of that is the fuel economy. ... The hybrid gives it an opportunity to be a much more efficient vehicle and to again be a more acceptable vehicle."
Consumers will find the hybrid Durango to be 25 percent more fuel-efficient than its nonhybrid counterpart.
While there is a lot of optimism for the Durango hybrid, auto experts don't expect it to change the outlook of the Newark plant, which is slated to close in late 2009.
Still, the technology used in the hybrid Durango is a significant feat for domestic automakers trying to play catch-up with veterans like Toyota. The new technology, developed by an unprecedented collaboration among DaimlerChrysler, BMW and General Motors, has certain advantages that make it more competitive than its Asian counterpart.
Like all hybrids on the market, the Durango will face challenges getting accepted by mainstream consumers primarily concerned with pricing. Its success depends on a variety of factors, including the price of gasoline, its fuel-efficiency and its ability to compete against other SUVs.
Higher gas prices, more environmentally conscious consumers and a slump in SUV sales has forced U.S. automakers such as Chrysler to find alternative ways of building vehicles that have fewer emissions and are more fuel-efficient.
More than 500 engineers from DaimlerChrysler, GM and BMW are working in Troy, Mich., to aggressively pursue a $1 billion project to develop the next-generation hybrid technology. The project began in 2004.
"Toyota doesn't have anything that is on the same scale that DaimlerChrysler, GM and BMW have developed," said Kevin Riddell, automotive analyst at J.D. Power and Associates, which monitors the auto industry. "It certainly does put the domestics, GM and DaimlerChrysler, and BMW in the forefront on the hybrid technology."
There are different types of hybrid technologies on the market. A popular and widely used hybrid technology is used by the Toyota Prius.
The Prius is powered by a gasoline-powered engine and an electric motor. As the internal-combustion engine fueled by gas runs, it charges the electric motor's batteries. When the car stops, the gas engine is turned off, and when the driver hits the brakes, the batteries allow the vehicle to be fully powered by electricity. The gas engine, the battery, or both power the vehicle depending on conditions.
The Durango hybrid offers consumers the option of a dual-mode hybrid system. This hybrid uses two electric motors that can work alongside a variety of combustion engines. Unlike the traditional hybrid, the two electric motors allow the vehicle to function in different ways depending on the gear. It will have an extended driving range on battery power and feature a gasoline or diesel engine that powers the car when the battery is low.
"It is a step above what is available in hybrid architecture," said Nick Cappa, spokesman for DaimlerChrysler. "This is likely to be the template for hybrid architecture."
Ultimately, the two-mode hybrid could be converted to plug-in hybrids with advances in battery technology, GM officials said.
The most attractive feature of the current two-mode hybrid is that it is as efficient on the highway as it is in city driving, and it can be more powerful than today's hybrid cars.
GM will introduce the two-mode hybrid later this year in the Chevy Tahoe and Yukon. Chrysler has started producing pilot Durango hybrids in Newark.
Becoming more popular
When it hits showrooms early next year, the Durango hybrid will enter a small but growing niche in the U.S. auto industry.
The hybrid vehicle market in the United States accounts for about 1.5 percent of all new vehicle registrations. Last year, there were 254,545 hybrid vehicles registered in 2006, a 28 percent increase from 2005, according to R.L. Polk & Co., a market-research company based in Southfield, Mich. It was the second-lowest year-over-year increase since 2000.
While the rate of growth of hybrids slowed last year, there are many more hybrid vehicles expected to be introduced in the next two years. So far, Toyota Prius dominates the hybrid market with 43 percent of the share. The Toyota Highlander, a midsize SUV, ranks second with 12.5 percent of the category.
Analysts don't expect the Durango hybrid to make a huge dent within the hybrid market. They see it as having a symbolic significance.
"The hybrid Durango isn't expected to be a high-volume vehicle," said Riddell of J.D. Power and Associates. "It's still expensive, and the cost to the manufacturer and consumers will keep volume sales relatively low."
Consumer reaction to the Durango will depend on a variety of factors, including its price, possible incentives and gas prices.
Chrysler has not announced the price of the Durango hybrid. Analysts expect Chrysler to add $2,000 to $4,500 on top of the cost of the regular Durango, which starts at $27,025. Chrysler recently began offering $6,000 incentives to buyers of the regular Durango.
The higher price may deter penny-conscious consumers. But most hybrid owners are affluent, with an average annual household income of $113,400, and are more interested in the environmental benefits than the price, according to J.D. Power & Associates.
A driving force behind Prius' sales has been federal tax credits. Because hybrids are more expensive, any type of incentive for consumers will go a long way, analysts said. It is not clear what incentives, if any, Durango hybrid buyers will receive.
Higher gas prices also are influencing consumers' decisions to shop for hybrids. The Durango hybrid will not be as fuel-efficient as the Prius, or even a Toyota Highlander, but it will have better fuel economy than its nonhybrid counterpart.
Even if Chrysler doesn't sell a whole lot of hybrid Durangos, it's expected to increase sales of Durangos as a whole.
"The large SUV hybrid market is going to be a pretty lucrative one, at least initially," said Jess Toprak, auto analyst at Edmunds.com. "Many consumers who are used to the space and size of the large SUV and want a little better gas mileage will be drawn back to those vehicles."
Impact on Delaware
Assembling Chrysler's first hybrid in Delaware raises the Newark plant's profile, but analysts don't see any change in the company's plans to shut down the plant in 2009.
"Being an exclusive producer of any model gives the plant a distinct advantage," Toprak said. "But there are no guarantees in the car business."
Assembling the Durango hybrid isn't very different from assembling the regular Durango. Part of the goal of the joint partnership between DaimlerChrysler, GM and BMW was to build a hybrid system that would easily fit into the different vehicles and wouldn't create complications during assembly.
That means the Durango hybrid can be assembled at any truck plant able to produce the Durango; it doesn't have to be made in Newark.
To help the Durango and future hybrids, local politicians are pushing for legislation that would help Chrysler and other domestic automakers become more competitive. Sen. Joe Biden, D-Del., plans to introduce a bill that would increase investment in advanced battery technology for hybrid vehicles. The legislation calls for an investment of $100 million a year for the next five years -- a total of $500 million -- for the research and development of lithium ion batteries. These batteries would be used in the hybrid plug-in vehicle.
http://www.cleanmpg.com/photos/data/501/2006_Dodge_Durango.jpgLuladey B. Tadesse - The News Journal - Mar. 11, 2007
DaimlerChrysler's Dodge Durango hybrid will break new ground for Chrysler and large sport utility vehicles when it debuts early next year.
The Durango hybrid, built in Newark, is Chrysler's first hybrid passenger vehicle in production.
As one of the first large SUV hybrids on the market, the Durango will improve Chrysler's image as the manufacturer of gas guzzling, environmentally unfriendly trucks. Just as Toyota and other rivals have benefited from a greener image garnered by hybrids, Chrysler hopes to reap the benefits of going green.
Auto analysts expect a hybrid engine will perk up flagging sales of the Durango. The novelty of a hybrid Durango alone is expected to draw new consumers into dealer showrooms. Production at the Newark plant will go up, even though Chrysler is expected to produce only 20,000 to 25,000 Durango hybrids a year. The plant assembled 65,954 conventional Durangos last year, and many more than that in previous years.
"It's a big deal for the company," said Brett Smith, auto industry analyst at the Center for Automotive Research in Ann Arbor, Mich. "There isn't the demand for those vehicles there once was, part of that is the fuel economy. ... The hybrid gives it an opportunity to be a much more efficient vehicle and to again be a more acceptable vehicle."
Consumers will find the hybrid Durango to be 25 percent more fuel-efficient than its nonhybrid counterpart.
While there is a lot of optimism for the Durango hybrid, auto experts don't expect it to change the outlook of the Newark plant, which is slated to close in late 2009.
Still, the technology used in the hybrid Durango is a significant feat for domestic automakers trying to play catch-up with veterans like Toyota. The new technology, developed by an unprecedented collaboration among DaimlerChrysler, BMW and General Motors, has certain advantages that make it more competitive than its Asian counterpart.
Like all hybrids on the market, the Durango will face challenges getting accepted by mainstream consumers primarily concerned with pricing. Its success depends on a variety of factors, including the price of gasoline, its fuel-efficiency and its ability to compete against other SUVs.
Higher gas prices, more environmentally conscious consumers and a slump in SUV sales has forced U.S. automakers such as Chrysler to find alternative ways of building vehicles that have fewer emissions and are more fuel-efficient.
More than 500 engineers from DaimlerChrysler, GM and BMW are working in Troy, Mich., to aggressively pursue a $1 billion project to develop the next-generation hybrid technology. The project began in 2004.
"Toyota doesn't have anything that is on the same scale that DaimlerChrysler, GM and BMW have developed," said Kevin Riddell, automotive analyst at J.D. Power and Associates, which monitors the auto industry. "It certainly does put the domestics, GM and DaimlerChrysler, and BMW in the forefront on the hybrid technology."
There are different types of hybrid technologies on the market. A popular and widely used hybrid technology is used by the Toyota Prius.
The Prius is powered by a gasoline-powered engine and an electric motor. As the internal-combustion engine fueled by gas runs, it charges the electric motor's batteries. When the car stops, the gas engine is turned off, and when the driver hits the brakes, the batteries allow the vehicle to be fully powered by electricity. The gas engine, the battery, or both power the vehicle depending on conditions.
The Durango hybrid offers consumers the option of a dual-mode hybrid system. This hybrid uses two electric motors that can work alongside a variety of combustion engines. Unlike the traditional hybrid, the two electric motors allow the vehicle to function in different ways depending on the gear. It will have an extended driving range on battery power and feature a gasoline or diesel engine that powers the car when the battery is low.
"It is a step above what is available in hybrid architecture," said Nick Cappa, spokesman for DaimlerChrysler. "This is likely to be the template for hybrid architecture."
Ultimately, the two-mode hybrid could be converted to plug-in hybrids with advances in battery technology, GM officials said.
The most attractive feature of the current two-mode hybrid is that it is as efficient on the highway as it is in city driving, and it can be more powerful than today's hybrid cars.
GM will introduce the two-mode hybrid later this year in the Chevy Tahoe and Yukon. Chrysler has started producing pilot Durango hybrids in Newark.
Becoming more popular
When it hits showrooms early next year, the Durango hybrid will enter a small but growing niche in the U.S. auto industry.
The hybrid vehicle market in the United States accounts for about 1.5 percent of all new vehicle registrations. Last year, there were 254,545 hybrid vehicles registered in 2006, a 28 percent increase from 2005, according to R.L. Polk & Co., a market-research company based in Southfield, Mich. It was the second-lowest year-over-year increase since 2000.
While the rate of growth of hybrids slowed last year, there are many more hybrid vehicles expected to be introduced in the next two years. So far, Toyota Prius dominates the hybrid market with 43 percent of the share. The Toyota Highlander, a midsize SUV, ranks second with 12.5 percent of the category.
Analysts don't expect the Durango hybrid to make a huge dent within the hybrid market. They see it as having a symbolic significance.
"The hybrid Durango isn't expected to be a high-volume vehicle," said Riddell of J.D. Power and Associates. "It's still expensive, and the cost to the manufacturer and consumers will keep volume sales relatively low."
Consumer reaction to the Durango will depend on a variety of factors, including its price, possible incentives and gas prices.
Chrysler has not announced the price of the Durango hybrid. Analysts expect Chrysler to add $2,000 to $4,500 on top of the cost of the regular Durango, which starts at $27,025. Chrysler recently began offering $6,000 incentives to buyers of the regular Durango.
The higher price may deter penny-conscious consumers. But most hybrid owners are affluent, with an average annual household income of $113,400, and are more interested in the environmental benefits than the price, according to J.D. Power & Associates.
A driving force behind Prius' sales has been federal tax credits. Because hybrids are more expensive, any type of incentive for consumers will go a long way, analysts said. It is not clear what incentives, if any, Durango hybrid buyers will receive.
Higher gas prices also are influencing consumers' decisions to shop for hybrids. The Durango hybrid will not be as fuel-efficient as the Prius, or even a Toyota Highlander, but it will have better fuel economy than its nonhybrid counterpart.
Even if Chrysler doesn't sell a whole lot of hybrid Durangos, it's expected to increase sales of Durangos as a whole.
"The large SUV hybrid market is going to be a pretty lucrative one, at least initially," said Jess Toprak, auto analyst at Edmunds.com. "Many consumers who are used to the space and size of the large SUV and want a little better gas mileage will be drawn back to those vehicles."
Impact on Delaware
Assembling Chrysler's first hybrid in Delaware raises the Newark plant's profile, but analysts don't see any change in the company's plans to shut down the plant in 2009.
"Being an exclusive producer of any model gives the plant a distinct advantage," Toprak said. "But there are no guarantees in the car business."
Assembling the Durango hybrid isn't very different from assembling the regular Durango. Part of the goal of the joint partnership between DaimlerChrysler, GM and BMW was to build a hybrid system that would easily fit into the different vehicles and wouldn't create complications during assembly.
That means the Durango hybrid can be assembled at any truck plant able to produce the Durango; it doesn't have to be made in Newark.
To help the Durango and future hybrids, local politicians are pushing for legislation that would help Chrysler and other domestic automakers become more competitive. Sen. Joe Biden, D-Del., plans to introduce a bill that would increase investment in advanced battery technology for hybrid vehicles. The legislation calls for an investment of $100 million a year for the next five years -- a total of $500 million -- for the research and development of lithium ion batteries. These batteries would be used in the hybrid plug-in vehicle.