Fear of tighter fuel efficiency standards in the US has strangled Chrysler’s plans for the launch of luxury sedan that would have been a bigger, heavier and less fuel-efficient version of Chrysler 300 C. Chrysler had planned to begin production of the Imperial in 2009 at its facility in Brampton, Ontario.
In March this year, the local union at the assembly plant agreed to contract concessions in lieu of a promise for Canadian $700 million investment at the facility, to get ready for the Imperial.
The high riding Imperial sedan had been widely compared to the Rolls Royce Phantom, and a number of celebrities were in line to have the Imperial for themselves.
CAW President Buzz Hargrove said that he was recently contacted by Chrysler and told that plans for the Imperial were scrapped due to pending legislation in the US congress. The legislation aims for greater fuel efficiency standards. According to the legislation, auto industry will have to manufacture vehicles with a fuel efficiency of 35mpg by 2020. Many see this legislation as a killer with a potential to bankrupt even auto giants like GM and Ford. The upcoming CAFE regulations have already begun to take toll on the auto industry.
Buzz Hargrove said that investment in the plant at Brampton will continue, albeit for the new generation of the 300 series. The next-gen 300 series is scheduled for a 2010 or 2011 launch. The Brampton plant will be refitted to continue building the current model which is manufactured in Europe.
A Chrysler spokesperson said that it would have been irresponsible to bring the car into the market in face of the pending US legislations. The new CAFE regulations can be a big blow to Chrysler which has a lineup of heavy vehicles and trucks. Chrysler plans to reinvent itself with more fuel-efficient engines and a lineup of small cars through a partnership with the Chinese automaker Chery Automobile Co.
Cerberus Capital Management recently bought a controlling stake (80.1%) of Chrysler from the German parent Daimler Chrysler AG in a $7.4 billion deal. The deal is expected to close this month. The financially struggling Chrysler has reported huge losses in the first quarter this year.
We would like to see the Imperial on the road. Let’s hope Chrysler will reinvent the Imperial in a hybrid version to meet the CAFE standards, or just do some magic!
[Via: USAtoday]
