Coming soon to dealers nears you: The Hybrid SUV Price War! AP (via Yahoo! ) reports Chrysler's plans to release hybrid versions of the Durango and Aspen this August. The new eco-warriors are based on the same two-mode technology GM uses for the Tahoe Hybrid, but with list prices $8,000 lower than GM's. Said system was co-developed by GM, then Daimler-Chrysler and BMW. "Chrysler said the hybrid SUVs get up to 20 miles per gallon and improve fuel economy by 40 percent in city driving and up to 25 percent overall." No official EPA fuel economy number have been released yet but that would put them on parity with the GM's mega-hybrids. The Durango and Aspen Hybrids are be priced about $3,500 over their conventional counterparts, MSRP wise. However, since in the real world Durangos and Aspens are trading hands at over $6,000 off MSRP, the actual price premium remains TBD. To date GM reports that about 2% of Tahoe/Yukon sales this year have been the hybrid version. Presumably Chrysler is hoping for a bit more of a volume kicker with its much more aggressive pricing. The $3,500 premium is reduced by a $1,800 tax credit for most US buyers. How much extra would you pay for an Aspen Hybrid, assuming you would buy anything from The New Chrysler Corporation?
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Although they did learn something from the GM fiasco, they did not learn enough. 45K is still too high a price. Better than 53K, but not low enough.
I still don’t understand the thinking on why they feel they can only put the hybrid powertrain in their decked out top of the line vehicle. A Hybrid “base” model in the low to mid 30’s, no nav, no back up sensor, no leather, no DVD, no 20″ wheels. Just 17″, A/C, Power windows and doors, and the hybrid and move some metal. Probably would get better mileage as well if it wasn’t loaded with options.
I agree with you Alex. Perhaps shortages of batteries and/or other components means they just won’t be able to build very many. If so, then selling the highest profit version makes short-term sense.
In the bad-old days new advanced technologies were released in high-end Cadillacs, Lincolns and such before trickling down to mid and low priced vehicles.
Like GM’s executives, Chrysler’s also appear to have built their mansions in a la-la land far away from reality.
I think I might get one of these vehicles… if someone paid me $50,000 or so. Otherwise, no. WHy would I want a crappy, gas sucking, poorly-made, unloveable, crappy, plastic cladded, crappy, ugly, unreliable vehicle? Did I mention they’re crappy?
I guess the target market is anyone who fears neither stupendous depreciation nor average quality and is looking for a $45K Chrysler.
Assuming that I was going to buy one of these in the first place and assuming that the price difference was only $1,700 ($3,500-$1,800 back fromt he feds) and assuming that the mpg improvement truly is 25% overall, this would be a no brainer. Perfect for most of the people buying a Chrysler SUV.
If I’m driving 12,000 miles per year in a Durango, I’m going to buy at least 750 gallons of gas. A 25% mileage improvement will drop that number to 600 gallons for a savings of 150 gallons of gas. At $5 per gallon, that $1,700 gets paid back in less than three years; plus while I doubt that the residual value of the mild hybrid Durango will be all that great, it will likely be better than the non-hybrid version. Even if my investments could match the rise in gas prices over the next seven years (unlikely), the gas savings would still warrant putting $3,000 in cash into a hybrid drivetrain rather than investing it.
Alex Rodriguez: I still don’t understand the thinking on why they feel they can only put the hybrid powertrain in their decked out top of the line vehicle.
Simple: The two-mode drive costs about $10k to make. Since they can’t ask that much for it, they have to subsidize it with the fat profit of a loaded vehicle. Same game GM plays.
This is kind of sad but not much of s surprise at all. Given the success that GM has seen with their offering I don’t expect people to be busting down the doors at the Dodge/Chrysler dealer to get their hands on these, especially given the current demand for the non hybrid versions of the Durango/Aspen.
It’s going to be tough to develop any economy of scale with these hybrids if the domestics can’t develop a unique model or apply the technology to a more mainstream vehicle.
Lumbergh21, I think the price difference hybrid to conventional, will be way more than $3500.
The Detroit 3 keep missing the sweet spot for these things. The two-mode, while advanced, is too expensive. GM’s belt alternator starter hybrid is too wimpy. Toyota, as usual, gets it right-their Hybrid Synergy Drive is just right.