Chrysler Aims to Undercut Tahoe Hybrid Pricing

John Horner
by John Horner
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chrysler aims to undercut tahoe hybrid pricing

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?

John Horner
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  • Paul Niedermeyer Paul Niedermeyer on Jun 18, 2008
    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.
  • Bancho Bancho on Jun 18, 2008

    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.

  • KixStart KixStart on Jun 18, 2008

    Lumbergh21, I think the price difference hybrid to conventional, will be way more than $3500.

  • Geotpf Geotpf on Jun 18, 2008

    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.