The market for hybrid full-size sport utility vehicles (SUVs) may be small, but Chrysler LLC is determined to get a piece of it, saying that its new hybrids will cost nearly US$8,000 less than competitors from General Motors Corp.
Chrysler said on Tuesday that its 2009 Dodge Durango hybrid would have a suggested retail price of US$45,340, while its 2009 Chrysler Aspen hybrid will start at US$45,570. A comparable four-wheel-drive version of the 2008 Chevrolet Tahoe hybrid starts at US$53,295, while the 2008 GMC Yukon hybrid starts at US$52,855.
Chrysler spokesman Nick Cappa said the hybrid Aspen would cost US$3,550 more than a comparable model with a gas engine, while the Durango will cost US$3,655 more.
Hybrid buyers will be able to reduce that premium with a hybrid tax credit of US$1,800, he said.
The Durango and Aspen are Chrysler’s first entries into the hybrid market and will go on sale in August. Chrysler said the hybrid SUVs get up to 20 miles per gallon (8.5km per liter) and improve fuel economy by 40 percent in city driving and up to 25 percent overall.
Chrysler’s hybrid system was developed in a partnership with GM, Daimler AG’s Mercedes-Benz and BMW AG, and the same system is used in the GM SUVs. The system — called a two-mode hybrid — can operate in electric-only mode at low speeds or with a combination of the gas engine and electric assistance for more power at higher speeds. The electric motors are lighter than those in the single-mode systems used by Toyota Motor Corp and Ford Motor Co, making them more ideal for towing.
Sales of full-size vehicles have tumbled this year, the victim of high gas prices and growing consumer preference for smaller cars.
GM said earlier this month it sold 1,100 Chevrolet Tahoe and GMC Yukon hybrids in the first five months of this year, or about 2 percent of its total Tahoe and Yukon sales.
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