Chrysler scraps Imperial plans
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Chrysler scraps Imperial plans
Chrysler scraps Imperial plans
July 17, 2007
By TIM HIGGINS
FREE PRESS BUSINESS WRITER
Chrysler, expecting tighter fuel efficiency standards in the United States, has scrapped production plans for a large luxury vehicle to be built near Toronto.
In March the local union at the Brampton, Ontario, Canada, assembly plant agreed to contract concessions in exchange for the promise of a $700-million Canadian investment at the facility to prepare for the luxury Imperial — a vehicle that would’ve been larger and heavier than any car currently in Chrysler’s production lineup.
CAW President Buzz Hargrove told the Free Press he was recently contacted by Chrysler, telling him the news that the Imperial was scrapped because of pending legislation in the U.S. Congress to increase fuel-efficiency standards.
He said the company still plans to invest in the plant, where the Chrysler 300 is also produced.
“They’ve told us that the investment is not off for the new generation of the 300 series,” Hargrove said. “But it looks like they are dropping the Imperial because of the U.S.’s more stringent requirements for fuel efficiency.”
A Chrysler spokesman confirmed that Imperial production is off and that rising fuel costs and expected efficiency standards are to blame.
“The decision to build the Imperial concept was always contingent upon our ability to create a profitable business case for the vehicle. In light of the current economic climate and the climate for restrictive fuel efficiency legislation, we can’t justify a business case to add that vehicle,” Chrysler spokesman David Elshoff said.
“Frankly it would’ve been irresponsible to bring that car to market,” he added.
Legislation that has passed the U.S. Senate would require the auto industry to meet a combined vehicle standard of 35 miles per gallon by 2020. Several executives have warned such standards could bankrupt Chrysler, which has a truck-heavy lineup.
July 17, 2007
By TIM HIGGINS
FREE PRESS BUSINESS WRITER
Chrysler, expecting tighter fuel efficiency standards in the United States, has scrapped production plans for a large luxury vehicle to be built near Toronto.
In March the local union at the Brampton, Ontario, Canada, assembly plant agreed to contract concessions in exchange for the promise of a $700-million Canadian investment at the facility to prepare for the luxury Imperial — a vehicle that would’ve been larger and heavier than any car currently in Chrysler’s production lineup.
CAW President Buzz Hargrove told the Free Press he was recently contacted by Chrysler, telling him the news that the Imperial was scrapped because of pending legislation in the U.S. Congress to increase fuel-efficiency standards.
He said the company still plans to invest in the plant, where the Chrysler 300 is also produced.
“They’ve told us that the investment is not off for the new generation of the 300 series,” Hargrove said. “But it looks like they are dropping the Imperial because of the U.S.’s more stringent requirements for fuel efficiency.”
A Chrysler spokesman confirmed that Imperial production is off and that rising fuel costs and expected efficiency standards are to blame.
“The decision to build the Imperial concept was always contingent upon our ability to create a profitable business case for the vehicle. In light of the current economic climate and the climate for restrictive fuel efficiency legislation, we can’t justify a business case to add that vehicle,” Chrysler spokesman David Elshoff said.
“Frankly it would’ve been irresponsible to bring that car to market,” he added.
Legislation that has passed the U.S. Senate would require the auto industry to meet a combined vehicle standard of 35 miles per gallon by 2020. Several executives have warned such standards could bankrupt Chrysler, which has a truck-heavy lineup.
I'm not surprised. Just stands to reason the new owners would change some of the future plans of the company. The Imperial will eentually bow, imo, but not anytime soon. Chrysler needs to take some time to get their bearings before they plot a course.
Too bad. There was a lot of interest in the car.
Chrysler would be able to do it with the proper automotive engineering, rather than automotive designing. The Imperial still has enough merit for it to be more than a concept design study...
Chrysler would be able to do it with the proper automotive engineering, rather than automotive designing. The Imperial still has enough merit for it to be more than a concept design study...
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