Chrysler Group Announces Five New SUVs on the way Amid Fuel Crisis

Chrysler Brand to launch its First Sport Utility?

Does it really make sense for Chrysler Group to be doubling its sport utility lineup amidst the most severe gas crisis since the mid-70s? Auburn Hills certainly thinks it does, and with a track record that includes some of the most intriguing new models to come along in decades, you might want to think twice before betting against them.

Altogether, Chrysler Group, made up of the Chrysler, Dodge and Jeep brands, will introduce at least five new SUVs within the next two to three years, as part of a new initiative internally called "Full Throttle.". The domestic automaker sees segment opportunities that it is not yet taking advantage of, which could even include a mid- to full-size Chrysler sport utility, plus a variety of new Jeep models, and even two more under the Dodge label.

While flying in the face of caution is hardly unusual for Chrysler Group, the popularity of its new fleet of V8-powered muscle cars - including the 300C, Magnum and Charger, plus the much more powerful SRT8 derivatives of each - is the perfect example that environmentally friendliness, MDS cylinder deactivation technology aside, doesnt appeal to everyone. Therefore, also bucking current trends, new SUVs will be arriving in the automakers showrooms en masse.

But hold on a minute. Convicting anything with an SUV label as an offender without first finding out what its fuel economy ratings will result in would be jumping to conclusions, wouldnt it? After all, are Toyotas RAV4 and Hondas CR-V considered gas guzzlers? What about Fords Escape, or for that matter its new Escape Hybrid alternative? No, while jumping on the "ban the Essuvee" bandwagon might be trendy, the fact is a large portion of new vehicle buyers still want the convenience and go-anywhere style of such wagon-like people haulers, and therefore it only makes sense for new Chrysler, Dodge and Jeep SUVs to fill in the "white spaces" currently missing from the lineup.

And a quick look at the new models coming will make Chrysler Groups aspirations all too clear, as its not planning to raise its CAFE rating in the process. For instance, of the five all-new models, at least three are to fill the fuel-efficient compact segment. Two car-based Jeeps have already been shown in concept form, the Compass and Patriot, although DCX executives arent stating whether both will get the nod for production. It is also expected a compact Dodge SUV will be built on the same chassis architecture, which will first underpin the upcoming Caliber - yes, while the Caliber might look SUV-ish, its merely a tough looking five-door hatchback. Dodge will also bring its Liberty-based Nitro to market, introduced during the 2004 Detroit auto show in concept form. Again, the Liberty is considered to be on the large side of compact, so the Nitro can hardly be deemed any greater threat to the ozone layer than other compact sport utilities.

Getting back to Jeep, a new five-door version of the next-generation TJ (Wrangler) is expected to see production, while Chrysler, as previously mentioned, may unveil its first traditional sport utility at an upcoming auto show (most likely Detroits NAIAS in January 2006), based on the slightly larger than midsize Durango. Most believe additional variations on the SUV theme will make their way into Chrysler Group showrooms, so dont expect this onslaught of sport utes to stop anytime soon.

For all the hybrid do-gooders that will snub their collective nose at Chrysler Groups latest announcement - plans that also include a HEMI V8-powered two-door Dodge Challenger to fight it out with Fords new Mustang - consider that Toyota and Honda continue to increase their presence in the SUV and truck market too. The former offers its midsize 4Runner with a V8, while its FJ Cruiser concept has been announced for production, joining one of the largest SUV lineups in the industry. Also, the larger Tacoma packs a much more powerful V6, and the upcoming Tundra replacement is expected to grow in size substantially.

Clean-as-Beaver Cleaver Honda has just added an innovative albeit heavy pickup truck to its North American lineup, while demand for large SUVs prompted the Japanese automaker to add the eight-passenger Pilot to the range, not too long ago. Now, talk of a V8 has eco-minded Honda fans raising their eyebrows, but such an engine is exactly what Honda, and especially its Acura brand needs to battle it out in the premium sector.

While a new mid- to full-size Chrysler SUV may also be controversial, it has probably been a mistake for the winged-logo brand to have never offered something likewise before, at least in hindsight. After all, the Durango has been available for close to a decade now, and it wouldnt take much to have dressed it up in more luxurious duds suitable for a Chrysler badge. The formula has worked well for its minivan lineup, which includes the Dodge Caravan and limousine-like Chrysler Town & Country, so why not for optimizing economies of scale within its sport utility range?

It seems that such is the case now, however, with the much improved Durango possibly serving as a base for the upcoming luxury variant. It would feature up to seven-occupant seating if built, just like the Durango, and go up against the GMC Yukon Denali, Envoy Denali, recently updated Ford Explorer Limited, Expedition Eddie Bauer Edition, Toyota Sequoia Limited, Nissan Armada, and other large, body-on-frame sport utilities.

While at first glance it looks as if Chrysler would be up against some pretty tough competition, its entirely possible it will enter the market with a vehicle as progressive as its 300 sedan, featuring bold styling, a variety of powerful drivetrains, and most importantly, a strong value proposition. The 300 has done as well as it has because it offers more style, performance, luxury and size for the money, than any rival. The formula could work extremely well in the luxury SUV market segment too.

If so, Chrysler could end up with a credible competitor for Cadillacs Escalade, the official "bling" SUV for the nouveau riche. Whats more, its smaller size, which along with Chryslers Multi-Displacement System (MDS) equipped HEMI V8 going head-to-head with GMs Displacement-on-Demand (DoD), would make sure its fuel efficiency was class leading - vital within a market segment that is shifting towards midsize models.

And according to a report in the Detroit News, Chrysler plans to resurrect a name from the automakers storied history for the new SUV, but no direct hints from the manufacturer as to what this name could be were offered - although the name Aspen is being bantered about on Internet message boards. Hmmm, theres nothing like looking back to Dodges less aspirational roots to badge a critically important new luxury model - incidentally the Aspen was also the sister car to the disbanded Plymouth brands Volare. Despite its association with the lesser brands mid-70s midsize model, the name Aspen suits an outdoorsy SUV, and if old memories can be forgotten, may conjure up images of Americas most well-to-do ski village. So, whether dubbed Aspen or something else, the new model would be built at the Newark, Delaware plant that also produces the Durango - which only makes sense.

While reports are surfacing that the new Chrysler SUV wont deviate much from the current Durango, being that the Dodge was only recently updated, it wouldnt follow examples set by Chrysler Groups recent offerings if it wasnt noticeably unique in character. Expect a bold Chrysler grille and headlight treatment, different taillights, and quite possibly a unique tailgate. Of course, the interior would need to be enhanced with higher quality plastics, metals, woodgrain accents and leather surfaces, to meet the expectations of a luxury buyer.

That Newark plant, which was initially built in 1951, was updated to the tune of $180 million USD in 2003 in preparation for the current Durango, but now that it is underutilized - Durango sales are down somewhat due to a general slide in larger, truck-based entry-level SUVs - it is the ideal location for the Chrysler SUV. While no new jobs are expected, at least at first, new tooling for the upcoming model could spell out additional expenditures in the tens of millions.

While the new Chrysler SUV is currently unofficial, and is only being talked about because reliable sources within the company have "spilled the beans" - Chrysler never officially speaks about future vehicles - the move would be a smart one for the domestic automaker. Although large, truck-based entry-level sport utes such as the Durango are not performing on the sales charts quite as well as they used to, luxury SUVs are still selling well. A bold, dynamic HEMI-powered entry, with upscale styling and features, and possibly a 425-hp SRT8 upgrade, could work very well, and for limited initial costs provide reasonable profits from a potentially smaller production run. Of course, it could also become a wild success, following in the 300Cs path.

And with this in mind, and the five (or so) new SUVs on the way, less than half of the eleven new vehicles the automaker will introduce next year, a Durango-derived Chrysler is likely. When the eleven become available, Chrysler will have launched twenty-five new vehicles since 2004 began.

Such a luxury sport utility would also segue nicely into DaimlerChrysler boss Dieter Zetsches plan to integrate American and German products more fully than has previously been done. Ironically, while Zetsche was running Chrysler Group it was made clear that the Crossfire coupe and convertible models, which share approximately 39 percent of previous-generation Mercedes-Benz SLK components, would be the first and last effort to enjoy such full cooperation between brands. Such is obviously not the case now.

"We have to spend less. We have to do more," commented Zetsche to The Detroit News in an interview, adding, "Theres no doubt that the speed and sustainability of bringing Mercedes back to very good profitability can only be increased by being able to work with Chrysler, versus on a stand-alone basis."

Zetsche, who is celebrated for his part in turning Chryslers books from red to black, prior to taking over Mercedes-Benz on Sept. 1, returned to Detroit late last month to address the media during a preview of Chrysler Groups new lineup.

Having orchestrated Chryslers return to profitably, partly due to the introduction of 9 new models, the popular 300 sedan being among the group, Zetsche doesnt want to see the automakers momentum slip one iota. "Now we want to take it to the next level," he added.

And now the time is ripe for more cooperation between Detroit and Stuttgart. At least those at Chrysler should feel more willing: "....as far as the psychology is concerned, it seems to me that many employees at Chrysler feel that one of them, a Chrysler guy, is taking the helm," Zetsche said. So there is "a good balance" now, he added.

But where Chrysler is looking strong financially, Mercedes-Benz is struggling.

"Some people couldnt imagine that there could be problems at Mercedes. They were in denial before the problems became full-blown," said Zetsche. "Pressure from the outside and the fact that both sides face significant challenges (have) overcome" some of those barriers, he added during his Detroit News interview, continuing, "Whatever we can do to help each other is good for all of us."

No doubt Zetsche will be busy overseeing both the Mercedes-Benz brand and DaimlerChrysler AG, which adds Chrysler Group and the smart brand to the mix, but the amiable CEO says hell return back to the U.S. often.

"A good portion of our business is located in the United States. Its not just Chrysler but Freightliner and Mercedes-Benzs U.S. activities," stated Zetsche.

But back to the introduction of new SUVs, and maybe more significantly the new Caliber, Chrysler Group has chosen not to offer a small sedan as a Neon replacement at all, at least for the time being. Is this a stroke of genius or an oversight? The automaker has cited that there isnt a market for one, but this seems odd due to the extremely popularity of Hondas Civic, Toyotas Corolla (which sells significantly better than the Japanese automakers Matrix, a Caliber competitor), the Mazda3, Hyundai Elantra, Kia Spectra, Ford Focus and Chevrolet Cobalt/Pontiac Pursuit. Yeah, its easy to see theres little interest in compact four-door sedans... not! Of course, if Chrysler is judging interest in the segment based on the aging Neon alone, which has been struggling more and more with every year it continues forward unchanged, the move to only offer a compact wagon makes sense.

Possibly, Dodges small car initiative will follow in the tire treads of its large car introduction, which saw the five-door Magnum enter the market almost a year ahead of the four-door Charger. This strategy might make some sense, if it is indeed what the automaker is doing, as it will allow some excitement to build in a segment where there is less competitiveness, Honda doesnt offer a five-door in this category for instance, a grand oversight of its own as it seems, preparing the four-door market for the arrival of the next-generation Neon replacement.

One thing is for sure, whether Dodge comes to market with a five-door and no four-door, or both, anything compact couldnt come soon enough to appease dealers, who watch every other automaker lure in entry-level buyers day after day with only price cuts and additional incentives left to spur on Neon sales. A bevy of new compact SUVs will also be welcome, and no doubt, Chryslers profit-packed Aspen SUV.