One of the many problems with Chrysler's product lineup is the aging powertrains. The six cylinder engines in particular are in desperate need of revamp, a project that the company announced it was working on in early 2007. Unfortunately, last week it appeared that amid all the financial market turmoil and discussions of a merger with GM the program had been killed. This week, Chrysler President Jim Press denied those reports and claimed that the Phoenix engine program was still very much in progress. The Phoenix engines are expected to be a thoroughly modern design with variable valve timing and direct fuel injection. The new engines should be significantly more fuel efficient and refined than Chrysler's current engines, but the program was expected to cost $3 billion including two new engine plants to build them for the 2010 model year. If a deal does happen, it seems likely that the engine program may yet be canceled.

[Source: Reuters]

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