Plans for a hybrid Ram roll forward

But market doubts cloud light-duty diesel's future

Alisa Priddle / The Detroit News

Ann Arbor -- Chrysler Group LLC still plans to roll out a hybrid version of its light-duty Dodge Ram pickup in 2010, but a diesel-powered model is in question.

The hybrid Ram will use technology that was developed in partnership with General Motors Co., BMW AG and Daimler AG. Each of the automakers has launched vehicles with a "two-mode" hybrid system, so named because it can operate in full electric mode at low speeds and the gasoline engine mode kicks in as the vehicle accelerates.

Plans for both a hybrid and a diesel light-duty Ram in 2010 were revealed last year.

There have been no changes to the plans for the hybrid, Scott Kunselman, Chrysler senior vice president of engineering, confirmed in an interview at a recent Ram event here.

But the engineering chief would not confirm the diesel is still in the works and refused to comment on its future other than to say he isn't convinced there is enough of a market among recreational buyers. Kunselman instead referred to the upcoming Nov. 4 event when Chrysler will outline its five-year business and product plan created under new leadership following an alliance with Fiat SpA and the appointment of Fiat's Sergio Marchionne as chief executive officer.

Conversely, the heavy-duty Ram is offered with a 6.7-liter six-cylinder diesel engine, and 85 percent of customers opt for it instead of the 5.7-liter V-8 gasoline engine.

Diesels make sense for buyers of the heavy-duty Ram, especially for commercial use, Kunselman said, but he said he is not as convinced light-duty Ram buyers will pay extra for a diesel engine. Diesels cost twice as much to manufacture than gasoline engines, but offer better fuel efficiency and better power for towing.

Commercial buyers of heavy-duty trucks factor in the high resale value of a Cummins diesel and that 100,000 miles is considered the break-in period for an engine that's good for at least 150,000 miles. "The commercial vehicle buyer calculates this," Kunselman said. "I'm not sure the recreational buyer makes that calculation."

As for the Global Hybrid Cooperation that was formed in 2005 and drew engineers from each of the four automakers to a shared facility in Troy, the hybrid project met its intent, is no longer needed, and the collaboration is all but disbanded, Kunselman said.

All four companies developed hybrids with versions of the jointly developed technology.

The joint engineering and research and development initiative formally ended June 17 and operations have been winding down ever since, said Judy Brunson, operations officer for Mercedes-Benz Hybrid LLC in Redford.

Daimler spokesman Han Tjan said the partnership was supposed to formally end in April but was extended so work could be completed. Mercedes-Benz offers the two-mode hybrid system in the ML sport utility vehicle.

At the Redford office about 100 people are doing research and development on alternative powertrains, Brunson said. The facility will be renamed Mercedes-Benz Research and Development North America in the new year, she said.

The lease on the Troy facility expires at the end of the year, said GM spokesman Brian Corbett. GM engineering staff have been relocating to Milford and Pontiac as part of a larger staff consolidation plan, he said.

GM was the first to put a two-mode hybrid on the road with the Chevrolet Tahoe and GMC Yukon in 2007 followed by the Cadillac Escalade last year and the Chevy Silverado and Yukon Denali, GMC Sierra and Escalade Platinum this year. Still to come is a yet-to-be-named plug-in hybrid to replace the Saturn Vue, which was to launch with the technology until GM decided to eliminate the Saturn brand as part of its restructuring.

Chrysler introduced its hybrid system in the Dodge Durango and Chrysler Aspen, which have since been discontinued. The automaker's engineers have relocated from the Troy office to the Chrysler Technology Center in Auburn Hills, Kunselman said.

BMW did not return calls but the other partners said its engineers have been relocated to Spartanburg where the German automaker has facilities.

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