Rumormill: Chrysler cancels development of Phoenix V6 engines
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]
Reader Comments (Page 1 of 3)
Kaptain75329 1:38PM (10/21/2008)
Another nail in the coffin. And the death clock ticks on.
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Nightcrawler 1:43PM (10/21/2008)
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.
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Shipey 1:45PM (10/21/2008)
If true, this is a sure sign of impending sale.
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Dave 4:49PM (10/21/2008)
Not necessarily.
If GM and Chrysler have been talking, they could have come up with other ways of saving money besides a merger.
Chrysler could just license GM's V6 for $1B and save themselves $2B.
AZZO45b 6:51PM (10/21/2008)
Are you kidding dude... GM is spending 1 BILLION a month & are having trouble coming up with $$$ for Chrysler...
...WTF are they gonna come up with 1 BILLION for Chrysler's engines? GM V6 motors are already more developed than any "new" concept Chrysler has.
montoym 8:05PM (10/21/2008)
@ 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.
AZZO45b 9:46PM (10/22/2008)
If GM buys Chrysler... they won't need to buy or license ANYTHING... because the Mopar brands won't exist
TheRedMonkey 1:51PM (10/21/2008)
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.
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Shiftright 2:02PM (10/21/2008)
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
Talisman 2:05PM (10/21/2008)
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.
1970Dodge 2:11PM (10/21/2008)
The good news to those people who bought up the first SRT8 Challengers is that in 40 years they WILL sell for six figures as "the last Mopar."
MikeW 2:26PM (10/21/2008)
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.
Purifoy 2:31PM (10/21/2008)
All things considered, I would have to agree with you, Red Monkey.
Judy Zik 3:21PM (10/21/2008)
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.
Ford Wannup 6:44PM (10/21/2008)
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.
RRL 1:51PM (10/21/2008)
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.
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Brad 3:47PM (10/21/2008)
I agree. This means some sort of sale is about to happen. I also hope it is Renault/Nissan that gets Chrysler. With Nissan supplying a small car to Chrysler and Nissan swiching to the Ram for their full size trucks, I would say that Renault/Nissan has the inside track.
At least that's the way I hope it goes down because I still have family that owns a dealership and would like to see them survive.
Dave 1:54PM (10/21/2008)
If you'd read further you would have seen that the Phoenix is NOT under the hood of ANY car but will be far in advance of most automakers' current products, with direct injection and multiple displacement all but confirmed.
Likewise, the dual clutch automatic is reputed to be the most advanced available anywhere.
These moves are very short-sighted at best - even if GM was buying Chrysler!
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Dave 2:00PM (10/21/2008)
PS> I should mention the following URLs for people who care to learn more rather than just assuming anything made in America is crap:
http://www.allpar.com/corporate/auto-manual-transmission.html
and
http://www.allpar.com/mopar/phoenix-engines.html
TJ 2:02PM (10/21/2008)
Spot on... The Phoenix line is more advanced than the GM HF-series. Canning this project years in the making is NOT a good decision.
So long Chrysler. Hope I can still find parts.