The state of Oklahoma’s order is the Company’s largest customer order since production of the CNG trucks began in October.

Peter Grady, Vice President of Network Development and Fleet – Chrysler Group LLC, presented the keys to one of the Ram 2500 CNG pickups to Oklahoma Governor Mary Fallin at the Oklahoma Department of Transportation (ODOT) in Oklahoma City.

The Ram 2500 CNG is the only entirely OEM-built compressed natural gas-powered pickup truck in North America.

ODOT will use the Ram CNG pickups primarily as service trucks on the state’s roads and highways.

Gov. Fallin is leading a bipartisan coalition of 22 states seeking to use more CNG vehicles in their state fleets.

Chrysler said CNG-powered trucks offer cost and emissions benefits, using an abundant, domestically-sourced fuel, which reduces America’s dependence on foreign oil. CNG lessens the environmental impact of greenhouse gas and reduces smog-producing pollutants up to 90 percent.

The governor announced the CNG project at the inaugural Governor’s Energy Conference in 2011. Since then, Gov. Fallin has worked with other state officials and governors, met with automobile manufacturers, including Chrysler Group, and issued and received bids for more affordable CNG vehicles for use in state fleets.

“Chrysler Group is delighted that we can deliver these unique Ram pickup trucks today to Gov. Fallin, a steadfast champion in the use of compressed natural gas vehicles in state fleets,” Grady said. “Through the governor’s tireless efforts to form a coalition of states, 13 Ram Truck dealers have landed contracts with 19 states to supply their fleets with the new Ram 2500 CNG pickup trucks.”

The Ram CNG pickups delivered were purchased by the state of Oklahoma through John Vance Motors, a Chrysler Jeep Dodge Ram Truck dealership in Guthrie, Okla., north of Oklahoma City.

“Converting the state’s fleet to CNG will save taxpayers millions of dollars in fuel costs,” Gov. Fallin said. “The use of cleaner-burning CNG fuel is good for the environment and promotes Oklahoma-made natural gas which in turn supports the creation of more Oklahoma jobs. Our multi-state bidding process was aimed at encouraging automakers to provide states with more affordable and more functional CNG vehicles. We are very thankful for the team at Chrysler for their help and leadership throughout that process. The state of Oklahoma is excited to add quality CNG trucks to our state fleets from manufacturers like Chrysler.”

The Ram 2500 CNG is a bi-fuel vehicle that uses compressed natural gas as its primary fuel source, but automatically switches to gasoline when the CNG tanks are emptied. In use, the Ram CNG transitions from one fuel to the other with little discernible difference in operation or capability.

“These are heavy-duty trucks and we have highway crews in every county in the state who will put them to work immediately,” said Oklahoma Secretary of Transportation Gary Ridley. “I’m grateful that ODOT has the opportunity to work with Governor Fallin and the auto industry to cut costs and improve our operations.”

In vehicles, Chrysler said CNG achieves nearly identical mileage figures as unleaded regular gasoline – with a retail cost more than 50 percent lower than the average price of a gallon of gasoline.

The Ram 2500 CNG system was fully engineered and tested by Chrysler Group and is assembled at the company’s Heavy Duty truck plant in Saltillo, Mexico. Production of the Ram 2500 CNG began in late October in the Saltillo plant.

The post 242 Ram CNG Trucks Heading To Oklahoma DOT appeared first on HybridCars.com.

The name is instantly recognizable as a very capable and versatile mid-size SUV. Powered by an old in-line six cylinder engine, the Cherokee was typical of the ‘80s and ‘90s SUV, with fuel economy ranking low in the list of priorities.

For 2014, Jeep brings the Cherokee name back to North America with the debut of its all-new mid-size sport-utility vehicle.

Said new Cherokee will replace the Liberty in Jeep’s lineup.

Set to debut at the New York International Auto Show in March, the all-new, “no-compromise” 2014 Jeep Cherokee is said by Jeep to set a new standard with even more best-in-class capability, exemplary on-road driving dynamics, and fuel economy improvements of more than 45 percent versus the outgoing mid-size SUV model.

The all-new 2014 Jeep Cherokee will be built in the United States at Chrysler Group’s Toledo Assembly Plant in Toledo, Ohio.

This new Cherokee is slated to arrive in dealer showrooms in the third quarter of this year.

As usual with such pre-show announcements, we will keep you updated when more details are released by the manufacturer.

Diesel or small Fiat engine under the hood? All bets are on.

The post Fuel-Efficient Cherokee Underway? appeared first on HybridCars.com.

To begin sales in the third-quarter of 2013, this vehicle will become the only half-ton pickup truck to offer a small-displacement diesel engine.

The 2014 Ram 1500 will offer a 3.0-liter EcoDiesel engine, mated with a eight-speed TorqueFlite automatic transmission.

“Truck owners have been emphatically asking for it, and Ram will be the only manufacturer to offer a diesel powertrain in the half-ton segment with the 2014 Ram 1500 EcoDiesel,” said Fred Diaz, President and CEO — Ram Truck Brand, Chrysler Group LLC. “The half-ton truck market is incredibly competitive, and although we’re honored the Ram 1500 has received a number of prestigious awards, we cannot rest on what we have accomplished, we must keep pushing.”

The new 3.0-litre V6 EcoDiesel is, according to the company, among today’s most advanced diesel engines. Its emissions are 60 per cent less than those produced by the diesel powertrains of 25 years ago. The combination of torque and fuel economy marks new levels of performance for small V6 engines.

Ram’s newest turbo diesel engine is manufactured by VM Motori, a Chrysler Group diesel engine supplier since 1992.

More information on the engine’s power and fuel consumption will be available closer to launch.

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Fiat-Chrysler’s CEO Sergio Marchionne says he’s still not positively disposed toward hybrids, but the company will be forced to begin producing them to meet 2025 emission mandates.

“I have no other way of getting to 2025 [CAFE] numbers than by going to hybrids,” he told Automotive News of sales to the North American market.

What’s wrong with hybrids in Marchionne’s estimation? They’re relatively expensive to produce and he said he is skeptical whether they would not only sell in low volume, so it would be a losing proposition.

Chrysler has been content to let other automakers take the lead with hybrids but the company will have a hybrid version of the Chrysler 300 for 2013.

As previously reported, the Obama administration is well underway toward increasing Corporate Average Fuel Economy (CAFE) requirements for cars and light trucks sold in North America.

Assuming tentative rules are finalized, they would jump from a nominal “35.5” mpg in 2016 to “54.4” mpg in 2025.

This 54.4 figure is calculated by the federal government and another branch of the same government, the Environmental Protection Agency, would actually calculate”54.4 mpg” to around 40 mpg on vehicle window stickers.

In any event, it will be the largest increase since the government began mandating CAFE in 1970.

To get its across-the-board pollution output down, Chrysler will also begin offering clean-diesel powered vehicles, including a 2013 Jeep Grand Cherokee, and afterwards Chrysler Group will offer a diesel version of most of its large vehicles to North America.

Actually, for its European exports, the company is already on board with diesel. Most Euro-market Chrysler, Dodge and Jeep models exported from the United States are diesel powered, but these are not sold here.

Chrysler’s global diesel push is part of a five-year plan which began November 2009 and stated its percentage of diesel sales would increase from 8 percent in 2009 to 14 percent in 2014.

And beyond hybrids, possible BEVs, and diesels, Marchionne said meeting the CAFE target could require more technologies including compressed natural gas CNG).

Making available a significant number of vehicles powered by CNG would also improve the company-wide emission numbers, but Marchionne expressed concern here as well even though its parent company, Fiat S.p.A. leads European CNG sales.

“The likelihood of that happening is uncertain,” Marchionne said, “but I’m still hopeful that at least a sizable portion of the U.S. market will develop CNG capability. And we are ready.”

Automotive News (subscription required).

The post Chrysler Will Reluctantly Build Hybrids, CEO Says appeared first on HybridCars.com.

Production of a fuel-efficient hybrid minivan from one of the leaders in the segment is good news for hybrid fans, which have been clamoring for a seven-seat hybrid minivan since the introduction of gas-electric cars in the United States in late 1999. Last week, Ford announced plans to produce hybrid and plug-in hybrid versions of the Ford C-Max microvan by 2012. The Ford C-Max has much of the functionality of a minivan—including potential seating for seven—but is not as big as today’s American minivans and does not have sliding doors. Toyota last week also unveiled its Prius V hybrid wagon, which has more room than the traditional Prius, but seats five.

Rethinking the Minivan

Marchionne made a long-term commitment to minivan. “We’re not going to give up one inch of territory in terms of our domination of the segment,” he said. “But more importantly, you need to realize that we need to adapt to the changing condition of the market.” That translates to more versatility, higher fuel economy, and probably a smaller footprint.

While headlines about a Chrysler hybrid minivan are using 2013 as a release date, Marchionne’s exact comments were punctuated with “probably” and “hopefully.” He said the new minivan architecture “will probably be in the marketplace hopefully by 2013 or 2014.” Marchionne said that the company will “rethink” the minivan, and it might not look like what a minivan looks like today.

“We’re going to do all the right things technically. I know there was some rumors that we were going to announce hybrid stuff for this van,” Marchionne said. “We can do all these things. Assume that it will happen in due time, and that we’re not going to blow our trumpet and look for recognition before we’re ready to do them.”

Chrysler will use new in-house hybrid technology, not the so-called “two-mode hybrid” system co-developed with General Motors and BMW. Detroit News also reported that Marchionne will soon make an announcement with Lisa Jackson, head of the U.S. Environmental Protection Agency, about funding for evaluating a new drivetrain technology. Considering the Obama Administration’s past support of plug-in technology, Chrysler’s new electric-drive system could be compatible with plug-in hybrids and full electric cars.

Ralph Gilles, head of the Dodge brand, also said a hybrid version of the Dodge Charger was in the works.

Update (1/20/11): Chrysler’s announcement with the E.P.A. was not about testing plug-in technology. Instead, it was about the evaluation of the E.P.A.’s patented hydraulic hybrid technology—the transfer of hydraulic fluid in high-pressure chambers—in minivans. The E.P.A. and Chrysler anticipate the use of a hydraulic hybrid system could improve the fuel efficiency of a minivan by as much as 35 percent.

The post Chrysler Will Offer More Hybrids, Including Gas-Electric Minivan appeared first on HybridCars.com.

2011 Chrysler 300

The most fuel efficient of the current Chrysler 300 models, equipped with 2.7-liter 178-horsepower V6 engine, provides 18 mpg in the city and 26 on the highway. Rising fuel economy mandates will require automakers to deploy gas-electric hybrid technology on a broad range of vehicles—simultaneously pushing to higher levels of efficiency with new models and mitigating penalties associated with gas-guzzling vehicles.

In 2008, the company discontinued the Dodge Durango and Chrysler Aspen full-sized hybrids just two months after both vehicles began full-scale production. A company press release stated, “In response to the continuing global economic slowdown and auto industry contraction, as well as the market’s continuing movement toward smaller vehicles, Chrysler is announcing…the pull-ahead of the closure of the Newark, Del. Assembly Plant.” On Dec. 31, 2008, the plants where both the hybrid and non-hybrid versions of these two models were built was shut down.

At the time, Chrysler spokeswoman, Mary Beth Halprin, said, “More hybrids are coming in the future,” referring to long-established plans (at that time) for Chrysler to produce a hybrid gas-electric version of the Dodge Ram pickup. The company reiterated its commitment to the Ram Hybrid in early 2009—only to abandoned the project in March 2010. Three months later, the company announced plans for a small test fleet of Dodge Ram plug-in hybrid pickups—backed by a $48 million Department of Energy grant.

After years of developing gas-electric technology, Chrysler certainly has access to the hardware and other systems necessary to produce hybrids. Yet, Chrysler is perhaps the furthest behind on the electrification of the vehicle. Marchionne’s statement suggests the company is prepared to get back on track. Hybrids could play an important role in meeting Chrysler’s fuel efficiency goals. At the 2010 Automotive News Detroit Green Car Conference last week, Paulo Ferrero, Chrysler’s senior vice president for powertrain, targeted a 25 percent overall fleet average fuel economy improvement for Chrysler’s fleet by 2014.

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Those same bailout funds are also the key to Chrysler’s plans for plug-in hybrids and electric cars. Before sliding into bankruptcy, the old Chrysler had announced it was rapidly moving rapidly into the plug-in vehicle market and showed off three vehicles to make its case—a Dodge EV sports car (now dubbed the Dodge Circuit), a plug-in hybrid minivan and a plug-in hybrid Jeep. At the time, they promised that these vehicles would hit showroom by the end of 2010. The economic meltdown and subsequent bankruptcy threw these plans into doubt.

Uncle Sam to the Rescue

The new Chrysler is back with a new EV plan and—not surprisingly—they want taxpayers to pick up the tab. Chrysler’s ambitious request for $224 million from the Department of Energy will go head-to-head with proposals from General Motors, Tesla and other applicants. The key stimulus program allocated $400 million to support “transportation electrification.” (This is a different pot than the $25 billion in government loans for retooling.) Chrysler was silent on what would happen if its $224 million grant application were not fully funded—except to say that the federal dollars would “reduce the amount of time it will take to get these vehicles on the road.”

Chrysler’s plan, with a total budget of $448 million, is to build a 365-vehicle demonstration fleet of plug-in vehicles: 100 plug-in hybrid Chrysler Town & Country minivans; 100 plug-in hybrid Dodge Ram 1500 pickups;, and—in a clear attempt to win the hearts of federal funders—a fleet of 165 all-electric Town & Country minivans reconfigured for use by the US Postal Service. Chrysler would also use a portion of the money to fund a new tech center in Michigan.

The post Chrysler’s Electric Vehicles Depend on Government Funds appeared first on HybridCars.com.

Chrysler suffered a sales decline steeper than any other automaker in January—down 55 percent from January 2008. The decline spanned most of the lineup, but car sales were hit hardest.

Two of six future vehicles would be from the smallest ‘A’ segment, two from the subcompact ‘B’ segment, and two from the compact ‘C’ segment. The ‘A’ cars are the FIAT 500 retro 3-door liftback, as well as the 5-door liftback version of the FIAT Panda. The car based on the Panda would probably be badged as a Chrysler or Dodge.

In the subcompact category, one of the vehicles could be the Alfa Romeo MiTo—Alfa Romeo is owned by FIAT. The other vehicle is not yet known, but will most likely be placed under the Dodge brand.

A brand new vehicle built on Fiat’s ‘C’ platform could be the replacement for the Dodge Caliber. The Caliber is Chrysler’s only compact car and is currently being redesigned for the next model year. The second C-segment car to be introduced would be the Alfa Romeo 147. It would probably retain its name for the US market.

Even if the deal is finalized by April 30, as planned, it will take at least two years before Fiat cars can be remade into Chrysler models. In the meantime, Chrysler is in survival mode. The company received $4 billion in government loans and hopes to get an additional $3 billion by April. The funds would be used to complete the FIAT deal and to stay in business long enough to make good on its plans for smaller fuel-efficient cars.

The post FIAT Could Help Chrysler With Small Cars appeared first on HybridCars.com.

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What a new world we live in these days: a black president (hurray!), the worst economy since the Depression (oh, dear), and now…even Detroit is changing its wanton ways. Here are five pieces of ironclad evidence that Hell has now well and truly frozen over in southeastern Michigan.

1. Detroit car critic actually LIKES a hybrid!

See for yourself: Detroit News auto critic Scott Burgess, who never met a three-ton truck or big honkin’ SUV he didn’t like, actually fell for the 2009 Toyota Camry Hybrid. He doesn’t just like it—he LUVS it. What’s next, a Smart ForTwo?

2. Hour-long waits to drive green cars at the Auto Show.

As we mentioned in our Detroit Auto Show preview, the vacant basement of Cobo Hall was transformed into the EcoXperience, a 1/8-mile test track winding through waterfalls, flowers, and trees that filled the 70,000-square-foot area. Hometown crowds waited up to an hour to drive hybrid, electric, and fuel-cell cars at low speeds, with factory reps or trained drivers alongside. The only snag was the sharp, dank odor of mulch that rose onto the show floor from every basement stairwell, like a garden center with dead A/C.

3. Auto dealers, commentators, and CEOs want higher gas taxes.

Mike Jackson, CEO of AutoNation.

At least since the 1980 election of President Reagan, taxes have been seen as instruments of repression, outright theft, and/or the moral equivalent of, say, matricide. So you can hear the ice floes closing over the hot flames of Hell when the following folks all line up to advocate higher gas taxes:

Mike Jackson, CEO of mega-dealer AutoNation, most recently in front of a roomful of auto dealers, no less, at their annual convention. Our favorite quote: “Cheap gasoline combined with fuel efficiency mandated by the government is an economic disaster for America.”

Alan Mulally, CEO of Ford Motor Company—several times over the last two years, in front of various audiences, although he has also acknowledged the seeming impossibility of politicians voting to raise their constituents’ taxes.

Tom Walsh, Detroit Free Press columnist, who writes, “We’ll know [Obama is serious about energy policy] when he spends a barrelful of political capital from his ample reservoir to get behind a fuel tax hike that will add $2 to $3 to the price of a gallon of gasoline, over time, in the United States.”

4. Chrysler’s latest savior is…FIAT?!?

It would be bizarre if it weren’t, well…true. The “half” of the Detroit Two and a Half is relying for salvation on the chronic sick man of the European auto industry. After its abusive marriage with Daimler ended last year, Chrysler ended up in the arms of Cerberus Partners. The private equity group promised to reinvent it and keep it independent; instead, Chrysler has been so eviscerated that analysts say it no longer has the staff or ability to design passenger cars. It even canceled its only hybrids. FIAT CEO Sergio Marchionne says he has no intention of running both companies. Uh huh.

5. GM really is serious about the Chevy Volt.

GM’s product guru and Volt-cheerleader Bob Lutz.

When the Chevrolet Volt concept appeared in January 2007, critics blasted GM for blatant greenwashing. “It’ll never get built; it’s all just hype,” said a chorus of cynics. “Even if it does work, they’ll kill it.” Well, guess what? Two years later, the Volt seems to be on track, and the chorus of doubters has faded away into the background. GM maintains the first Volts will roll off the lines in late 2010, and they’re sticking to their schedule. If they succeed, they’ll finally lay to rest the ghosts of Who Killed the Electric Car?

The post In Detroit, Hell Actually Has Frozen Over appeared first on HybridCars.com.

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Cerberus, the private company behind Chrysler, is investing $2 million in lobbying efforts to send big name players, like former VP Dan Quayle, to Congress.

With a temporary bailout deal just over the horizon for the Big Three, one of the companies is not like the others. In 2007, Cerberus Capital Management, a private equity investment firm specializing in rejuvenating dying companies, acquired Chrysler and its financing arm. The idea was to flip the company for big money, but turning around the company—with its product line full of big trucks and SUVs—was harder than expected.

Chrysler continues to lose money and cut jobs. Meanwhile, Cerberus refuses to inject its own capital into the failing automaker. Instead, the company is investing $2 million in lobbying efforts and sending every big name it can to Congress to pull strings for a bailout. The top two lobbyists are Dan Quayle and John Snow.

Dan Quayle

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Former Vice President Dan Quayle

Quayle is most famous for being a late night talk show punch line during his tenure as Vice President, but since retiring from politics he’s spent most of his time fundraising, golfing, sitting on corporate boards, and lobbying. Currently, he serves as a spokesperson for Cerberus and runs one of its international units. According to The New York Times, Quayle has actively courted Congress on Cerberus’s behalf.

No word on whether Quayle thinks that “bailout” has an “e” at the end of it.

John Snow

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Former Treasury Secretary John W. Snow

Though Snow’s term as Treasury Secretary could be described as uneventful, one thing that can be said about the man is that he knows the right time to leave a party—just ask his successor, Henry Paulson. Snow is now the chairman of Cerberus, and has lobbied Paulson repeatedly on the bailout issue in recent weeks. One wonders how heavily Snow’s connection to the Treasury Department factored into his hiring at the Cerberus—he’s joined on the lobbying team by Christopher Smith, a former chief of staff at Treasury.

Several lawmakers have questioned why Chrysler—which is expected to be sold off or merged into another auto company shortly—should be sitting next to GM and Ford asking for money. What about Chrysler’s dire straights couldn’t be solved with an influx of capital from Cerberus? Would granting the automaker’s request just amount to a giveaway for Cerberus or whatever company ends up acquiring Chrysler?

Other Cerberus lobbyists include John Breaux, a retired three-term Senator from Louisiana, now working for Patton Boggs, an influential lobbying firm; Billy J. Cooper, also a partner at Patton Boggs; and David Hobbs, who served as President Bush’s personal lobbyist on Capitol Hill.

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