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

Trump and Regulations: An Alt-Fuel View

With 2025 emissions targets back in review, manufacturers, alt-fuel, and alt-power suppliers weigh in on the potential impacts of Trump’s initiatives.

Why GM’s Telematics Announcement is a Really Big Deal

Enabling a telematics connection at the factory — and not through an aftermarket hardware installation — is a game changer for fleets.

Four Thoughts From the 2016 Conference Calls

Sifting through the notes of Avis Budget Group’s and Hertz Global Holdings’ recent fourth quarter conference calls give us some trend lines to watch out for in 2017. (Of course, this gives us an incomplete snapshot, as Enterprise Holdings is privately held.)

Job Finder: Access Top Talent. Fill Key Positions.

>