• Jan 5th 2012 at 12:59PM
  • 160
Chrysler dropped a bombshell today, insinuating that its forthcoming 2013 Dodge Dart will have a combined fuel economy of 40 miles per gallon. Some media outlets have regurgitated this number without question. But it just isn't true, as that 40-mpg fuel economy number is unadjusted and will most certainly be lower once it gets printed on window stickers.

To better understand the way fuel economy numbers get calculated, we'll point you to this page on the Environmental Protection Agency's website. The short version is that cars are tested by the EPA to determine fuel economy for Corporate Average Fuel Economy (CAFE), then adjusted for real world conditions before they are published, both on the EPA website and on Monroneys, or window stickers. City numbers are dropped by 10 percent, while highway numbers get a 22-percent reduction. Some rough estimating says that the Dart will probably be rated at about 34-mpg combined once the final adjustments are made. Still a good score, for sure, but far from 40.

So why did Chrysler even mention 40? In its big announcement today that Fiat had increased its ownership stake, the explanation is that Chrysler has met one of the conditions of the bankruptcy agreement, that it produce a 40-mpg vehicle for CAFE. That vehicle is the Dart.

Could Chrysler have done a better job of explaining what the fuel economy number really means? Sure, but then we wouldn't have been able to write this post.
Show full PR text
Chrysler Group LLC Completes Final Performance Event; Fiat S.p.A. Ownership Rises to 58.5 Percent; Fuel-Efficient Dodge Dart to Be Revealed at NAIAS on Jan. 9

January 5, 2012 , Auburn Hills, Mich. - Chrysler Group LLC today announced that Fiat S.p.A.'s ownership interest in the Company has increased to 58.5 percent, from 53.5 percent (fully diluted), upon the Company's achievement of the final of three performance-related milestones.

As provided in its June 10, 2009 Operating Agreement, Chrysler Group issued a letter to the U.S. Department of the Treasury stating that the Company has irrevocably committed to begin assembly of a vehicle with an unadjusted combined fuel economy of at least 40 mpg in commercial quantities in a production facility located in the United States. As a result, Fiat's ownership interest increased automatically by 5 percent under the terms of the Operating Agreement.

The ownership interests of Chrysler Group's members are now:
Fiat: 58.5 percent
UAW VEBA: 41.5 percent

In late December, Chrysler Group achieved the Fuel Economy Test, for an unadjusted combined rating of 40 mpg, with a pre-production version of the Dodge Dart, its new, state-of-the-art, four-door sedan.

With the 2013 Dodge Dart, Chrysler Group is redefining performance in the compact car segment and delivering world-class aerodynamics. With Alfa Romeo DNA and Dodge's passion for performance at its core, the all-new 2013 Dodge Dart is a thoroughly modern and fuel-efficient vehicle that's beautifully designed and crafted, agile and brings driving fun back to the segment. The all-new Dodge Dart will be made in the United States at Chrysler Group's Belvidere Assembly Plant in Belvidere, Ill.

The Dodge Dart is scheduled to be unveiled at the North American International Auto Show in Detroit on Jan. 9.

This is the fifth time in the past year that Fiat has increased its ownership in Chrysler Group.

In June 2009, Fiat initially received a 20 percent stake in Chrysler Group in exchange for sharing intellectual property and other resources with the Company.

On Jan. 10, 2011, Fiat announced that its stake in the Company increased to 25 percent when Chrysler Group received the appropriate government approvals and committed to begin commercial production of the Fully Integrated Robotized Engine (FIRE) in its Dundee, Mich., facility.

On April 12, Fiat's ownership in Chrysler Group increased to 30 percent as Chrysler Group achieved cumulative revenue of more than $1.5 billion attributable to Company sales made outside of Canada, Mexico and the United States and entered into distribution agreements in Brazil and Europe, as well as a technology-use agreement.

In connection with Chrysler Group refinancing and paying back its U.S. and Canadian government loans in full on May 24, six years early, Fiat exercised its call option to increase its ownership interest in Chrysler Group by an incremental 16 percent to 46 percent, on a fully diluted basis.

And on July 21, Fiat reported that it paid $500 million to purchase the U.S. Treasury's remaining 6 percent (fully diluted) ownership interest in Chrysler Group and $125 million to purchase the Canadian governments' remaining 1.5 percent (fully diluted) ownership interest, bringing its fully diluted ownership interest to 53.5 percent. In addition, Fiat paid $75 million to obtain assignment of the U.S. Treasury's rights under the Equity Recapture Agreement.

With the submission of the letter to the U.S. Treasury, Fiat's stake in Chrysler Group is now 58.5 percent.

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    • 1 Second Ago
      • 3 Years Ago
      Chrysler explained this in a press release months ago. Autoblog's just now catching up
      • 3 Years Ago
      I have a 2008 Dodge Ram Quad Cab with the 5.7 Hemi. I am not an aggressive driver and keep my speed below the posted speed limit of 70,usually about 60. I get about 22 to 25 mpg. I have checked it out myself and if I drive 70 mph it drops to about 17 mpg. Thats why it says estimated. Even the commercials say the mileage may vary depending on your driving habits. Drive conservatively and clean the junk out of your car. My dad complained about a car i sold him back in the seventies that I sold him. He said it didn't get the mileage that I said I was getting. I told him to take the 300 lbs of tools and the extra spare out of the trunk and the car would not only get better mileage it would handle better too. His left foot braking didn't help because you could see the brake lights on as he would drive away.
        • 3 Years Ago
        My Toyota Tacoma 4WD, 4 Door, 4.0 V6, 6 foot box, 17 inch tires gets 24 MPG even at 70 MPH, but I don't race the engine, I go through gears gradually, then get up to ramp speed, it's tempting to put pedal to the metal, but you have to gradually get up to speed, and you'll see a dramtaic difference in fuel economy, heck I even drive at 75 MPH and I still get really good gas mileage, I would quote the 75 MPH gas mileage, but I haven't been on a road trip with a 70 MPH speed in a log time ( I only drive 5 over the posted speed limit), I always hit road construction or the 65 MPH across Illinois on Interstate 80. It took me a week to 2 weeks to learn the behavior when I bought my pickup, that and I put a Cyclone in my pickups air intake 3 years ago.
          • 3 Years Ago
      • 3 Years Ago
      Even if it hits a combine 40mpg it all depends on the driver. Believe me there are alot of lead-footed people out there who sure know how to waste gas like crazy.
      • 3 Years Ago
      It might , if it were not for the "ethanol anchor" dilutuing the gasoline .
      Glynn Hadskey
      • 3 Years Ago
      Good explaination. I love the way this car had an eyelid. I don't think I've ever seen it done like that before. It's very striking.
      • 3 Years Ago
      40mpg CAFE is not the same as 40mpg EPA. I do expect at least 1 version of the Dart to get 40mpg hwy rating on its window sticker.
      • 3 Years Ago
      Hell I prefer the Old Dodge Darts look over this Charger wantabe. Chrysler Bring back the Furys line Ford is dropping the panther chassis based vehicles thus killing the crown victory interceptor line. I can guarranty the national police community would welcome you back with open arms! PS if you deside to take my advise you can thank me with a Fury 2!
        • 3 Years Ago
        Ford is basically being forced by regulation, (think Congress and Beauracrats) to kill the Crown Vic and its platform. Too heavy and can't make the number to keep in production.
      • 3 Years Ago
      What is your "beef"? Their announcement is very clear that the number is 'unadjusted" and it is commonly known that the actual numbers always are less. Seems like you have an agenda here other than reporting on the announcement. What is it?
      • 3 Years Ago
      Well it says unadjusted... Most people will liken It to the 40mpg that the focus and Cruze and elantra get. i.e. highway.
      • 3 Years Ago
      Honestly, I don't care what mpg figures it can hit, so long as the Caliber/Avenger abomination goes away. Nothing with an R/T badge, a V6 and AWD should waft along the road.
      • 3 Years Ago
      If you drive with a raw egg between your foot and the accelerator and never use the brakes, you might get 60 Mpg, but this is not reality.
      • 3 Years Ago
      Based on the 2012 data file, the Mini Cooper S and Impreza make 40 MPG combined, unadjusted for CAFE (column O) and 30 MPG adjusted combined for EPA. http://www.fueleconomy.gov/feg/download.shtml
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