Chrysler to Drop New Sedan, Cites Fuel Curb-Report

The Chrysler Group is abandoning a plan to build a new luxury sedan, citing fuel regulations currently on the table in Washington that could push U.S. automakers to increase vehicle fuel mileage, the New York Times reported.

Chrysler is the first carmaker to announce a change in production plans related to the push in Congress to require that vehicles sold in the U.S. consume less gasoline, the Times report said.

A Chrysler spokesperson told the Times the environment was no longer favorable for a luxury Imperial model.

"We decided in an era of $3 gas and more regulations headed this way that it didn't amount to a good business case — a profitable business case," Ed Saenz said, adding that the decision was reached by the automaker three weeks ago and was not related to the group's impending sale to Cerberus Capital Management.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

The Problem with Valuing Safety Technology

As advanced safety technologies have migrated to mainstream vehicles, retaining value for these options at resale remains an issue.

ELD Mandate: Is Your Head Still in the Sand?

If you think you have 11 weeks to implement an Electronic Logging Device system to meet the Dec. 18 compliance deadline, you really don’t — for a few reasons.

Who Controls Your Vehicles’ Data?

In the name of security, an automaker’s alliance is advocating denial of third-party access to the OBD-II port. Is this going too far?

Job Finder: Access Top Talent. Fill Key Positions.

>