• Oct 21st 2008 at 1:28PM
  • 38
The Chrysler rumormill is running at full steam for obvious reasons, and the latest talk surrounds Chrysler and its $3 billion Phoenix V6 engine program. Word on the street is that the project has been canceled, which makes abundant sense if in fact a Chrysler merger is imminent. If a deal to merge Chrysler with either General Motors or Renault/Nissan materializes, both potential mates have V6 engines that are vastly superior to anything nestled under the hood of a Chrysler, Dodge or Jeep. Why would either automaker want to spend $3 billion for something it already has?

There seems to be little doubt among analysts that Chrysler will merge with another automaker, and the only question at this point is whether it will be GM, Renault/Nissan or some mixture of the two. Continuing to spend money on projects like a new V6 engine or a new dual clutch transmission doesn't make much sense at this point, especially since Chrysler's suitors already have or are working on these technologies. Thanks for the tip, Jason!

[Source: Allpar, Photo by rkupbens | CC2.0]

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    • 1 Second Ago
      • 6 Years Ago
      This is 100% commitment on a sale. If there is no sale, Chrysler is dead in the water with no future product.

      My money is on Renault.
      • 6 Years Ago
      The Phoenix is usually seen as a symbol of rebirth and resurgance and now it's cancelled. This doesn't sound good from a symbolic standpoint.
      • 6 Years Ago
      Is it not a true statement though?
      • 6 Years Ago
      Another nail in the coffin. And the death clock ticks on.
      • 6 Years Ago
      If true, this is a sure sign of impending sale.
        • 6 Years Ago
        @ AZZO45b:

        Did you even read the comment??

        That's exactly what he was saying. Chrysler could license GM's V6's and save themselves the development cost of a new engine. Thus saving them the $2 Billion Dave mentioned.

        Although, the savings wouldn't be anywhere near that much since they have already spent a lot of that money and won't get it back. Plus, they would have to redesign a number of their vehicles to accept the GM V6's. But, I guess there is still usually a savings involved since a number of manufacturers do it.
      • 6 Years Ago
      Nobody has ever called the VQ particularly refined or bulletproof. But the difference is the VQ - or the GM HF 3.6, or the Toyota 2GR for that matter - have guts.

      On paper the 250/250 Chrysler is still quite competitive. On the road that power just doesn't show up. The Sebring is slow, the two ton 300 is slower, a 5 year old Altima will smoke either of them to 60 by 2 seconds.

      That effortless power on tap is why one wins awards and the other shows up in rental lots. The only way it isn't vastly inferior is if you haven't driven both.
      • 6 Years Ago
      Kevin & upthewazoo, you both make some valid points, but I think you're both being a little too harsh on the eigties and nineties mopars. Sure, not many would think the Aries, Reliant, Shadow, Sundance K cars Spirits and Acclaims are classics, but what about the GLH Omnis, LHSs, Daytonas, 300Ms, Eagle Visions, Prowlers, Lasers, Lebaron Convertibles, and the first generation Sebring ragtops? What about all the cars that used the 2.2 liter turbo? I'm not sure how car enthusiasts of ANY age could dismiss all those hot cars!
      • 6 Years Ago
      Please Renault or Nissan, PLEASE buy Chrysler and save them from extinction! GM will just gobble them up! People who say Jeep is Chrysler's "only" asset worth anything are way, way off base. Mopar is an American institution! Hemis, 440s, Imperials, Airflows, Chargers, Furys, Challengers, the police cars, Rams, New Yorkers, LeBarons, Minivans, Vipers, etc this company is chock full of iconic vehicles! I would much rather the company be foriegn owned than disappear, I'll take Chinese ownership too!
        • 6 Years Ago

        I could not agree with you more! I am 26 and nothing that Chrysler has put out in my short time on Earth is the least bit intriguing with the exception of the Viper (which they are trying to offload)

        The 80's will be remembered for the LeBaron and other K Cars which spawned the minivan.

        The 90's brought the big old woman land barges of the LH-series

        The '00's brought nothing more than warmed over E-Class cars that were never appealing to anyone that actually drove one.

        Its sad that it has come to this but oh well, in my books and many others my age this is no big loss.
        • 6 Years Ago
        I am a Mopar fan and child of the 1980s, and as awesome as those cars you listed are, none of them have any relevance to people my age or younger. The Dodges and Chryslers I grew up with were beat-down K-cars, Neons, and cloud cars that were thoroughly unappealing and a quality disaster. When people my age reminisce about Mopars, they don't talk about Six Packs or Superbirds; it's the mirror that fell off in their hand, the blown transmission that left them stranded, the electrical gremlin that no one could fix. The outcome is that, as a whole, my age group sees Mopars as trashy loser cars; the worst cars in America, worse than the Korean brands, because "unknown" beats "definitely bad" every day.

        Mopar hit some home runs in its past -- the 1960s muscle cars, inventing the minivan and midsize pickup, etc. -- but that's ancient history and doesn't turn a Sebring or a Nitro into an appealing product. I'd love to see them hold on as a focused Apple-style "think different" company, but those days seem to be well behind us.
      • 6 Years Ago
      +1, Dave. Your site (allpar.com) is an awesome place for information and help.
      • 6 Years Ago
      I think it's sad the way this looks like it will turn out, because I've alway had a soft spot in my heart (or head?) for Chrysler.

      That said, I haven't been too interested in any of their products since the 300M, but over the years 4 of my 5 daily driver cars have been Chrysler products.
      • 6 Years Ago
      I heard this too and it confuses me. They actually have build a huge complex, I think in Mexico; for the plant and it is very far along in developement. I also thought it was a giant step forward -- engines are very expensive to design etc (GM was famous for using engine designs for decades, via tweaking them or renaming them).

      People don't know this, but Chrysler always had a very good reputation for their engines -- people make fun of them, but they are just spilling propaganda. I love my 318 V8; and even my Neon engine's were very good (horrible headgaskets in the 1995, but my 2000 and 2005 are bulletproof) -- BMW designed the Neon engine (version was used for years in the Mini), and the connection was that Bob Lutz worked for BMW before he went to Chrysler, and got them to adapt an engine they were working on for the Neon.

      Maybe GM is working on similiar "next generation" engines though. Also, GM is very well known for making good transmissions, particularly with their 6 speed ones (so that makes sense).

      Chrysler has always invested in the details most people miss. I remember when Chrysler put enourmous money into updating their brakes, and everyone thought they were crazy -- but even today I can tell in cars a couple years old that Chrysler have darn good brakes.

      Time will tell .. I have a real soft spot for Chrysler and would miss them.
      • 6 Years Ago
      I would rather see Nissan Renault buy them and keep the brand then GM buy them and kill them off. A Nissan V6 mill in the cars would do them a lot of good. That and I really want a Challenger but can't afford it until next year.
        • 6 Years Ago
        Im all for a Chrysler/Renault/Nissan.

        I think a GM/Chrysler is a bad bad idea though and will pretty much mean the end for them.
        • 6 Years Ago
        I have to agree. Quite simply if Renault buys them there will still be a Chrysler. If GM buys them there wont. It will be like when Chrysler bought AMC. They will disappear. Hundreds of thousands of people are going to lose their jobs at Chrysler, GM and parts suppliers.

        I can't help but feel the deja vu.

        In the late 80's AMC was dying because their cars were uncompetitive with the times. To get by AMC was in the process of bringing in and rebadging cars from overseas car makers as their own. Chrysler thought they were worth buying from Renault for the Jeep name and the new high tech Brampton plant. 20 years later Chrysler has become AMC and the same two assets are going to be key in it's sale to either GM or guess who? Renault.
        • 6 Years Ago
        Anyone else see the irony that a French-Nippon company will likely preserve one American icon, while another American icon will likely shut down some of Chrysler's iconic brand?

        Also to MikeW: Cerberus did not run Chrysler to the ground. And yes, a SWF will be better for Chrysler than GM. SWF investment in an American company is a vote of confidence despite of your chauvinistic paranoia.
        • 6 Years Ago
        I echo your sentiments. I really don't want to see such an American institution disappear. It would make way more sense for Renault to buy them than GM. That just sounds wrong, like the Democratic party merging with the Republican
        • 6 Years Ago
        What makes you think that the Republican & Democrat party haven't already merged?

        They are united to fleece the public.
        The two party system is a no party system.

        GM acquiring Chrysler is better than Cerberus running it into the ground, or selling to a sovereign wealth fund.
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