Among the technologies Nardelli believes will help is Chrysler's new two-mode hybrid system. Developed as part of a joint venture with General Motors, BMW, and Chrysler's former German owner, Daimler AG, it is an alternative approach to the hybrid-electric powertrain technology used by Toyota. Set to appear in several Chrysler models, including the Aspen SUV next year, the two-mode technology is designed to boost fuel economy on the highway, as well as during around-town driving.On GM's Chevrolet Tahoe, for example, it increases the city-cycle mileage rating by about 50 percent, to 20 mpg. Chrysler has not released final fuel economy ratings for its two-mode products, but the system will likely prove even more critical once Senate and House lawmakers agree on a final fuel economy increase.
Chrysler is particularly vulnerable to the proposed CAFE hike because nearly two-thirds of its lineup consists of the low-mileage minivans, pickups, and SUVs that have propped up its balance sheet over the last several decades.Considering the worsening financial situation at Chrysler - analysts expect it to post 2007 losses of around $1.8 billion, though as a privately held company, it's unclear how much financial data the maker will now provide - new mileage standards and shifting market conditions will be a heavy burden.
On the other hand, Chrysler was recently given a helping hand by its union workers. As it did for General Motors Corp. and Ford Motor Co., the UAW approved a variety of cost reductions, including a two-tier wage structure and a program that takes much of Chrysler's hefty healthcare costs off its books.But by various industry estimates, the savings will ultimately add up to $1000 or more per vehicle, and will close about two-thirds or more of the labor gap between the Big Three and the foreign-owned "transplant" assembly lines.
© Source: thecarconnection
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