Chrysler downplays hybrid Ram's future

June 23, 2004
With Ford Motor Co. ready to launch its new Escape Hybrid SUV and Toyota Motor Corp. enjoying strong sales momentum for its Prius hybrid passenger car, Chrysler Group is downplaying the potential sales impact of its '05 hybrid Dodge Ram Contractor Special pickup. The auto maker now says it may not launch "series production" of the pickup when the truck becomes available later this fall.

With Ford Motor Co. ready to launch its new Escape Hybrid SUV and Toyota Motor Corp. enjoying strong sales momentum for its Prius hybrid passenger car, Chrysler Group is downplaying the potential sales impact of its '05 hybrid Dodge Ram Contractor Special pickup.

The auto maker now says it may not launch "series production" of the pickup when the truck becomes available later this fall.

Instead, it likely will promote the truck to fleet customers, while limiting potential sales to the general retail market.

Plans for the launch of the Ram Contractor Special remain on track, Chrysler President and CEO Dieter Zetsche says at a press preview here of all '05 models, where the truck was noticeably absent.

The truck will feature a 110/220 volt AC electric motor that will provide additional power in certain driving situations. The auto maker says the hybrid system could boost fuel efficiency by 15% when compared with a conventional Ram truck. The electrical system also can be used as a stationary electric generator when the vehicle is parked.

Chrysler's low-key approach is in stark contrast to Ford's zealous hype of the Escape Hybrid, which has been making its rounds at media events for more than two years.

The decision not to direct too much attention to the hybrid Ram isn't an accident, says Joe Eberhardt, Chrysler executive vice president-global sales and marketing. He acknowledges that while the hybrid Ram will make its debut in the fall, there are no plans to launch a retail marketing campaign to support the vehicle.

"It has not been decided whether it is going to be an ultimate production vehicle. The vehicle will be there and it will be available, but it is not discussed for series production," he tells Ward's.

Eberhardt says Chrysler is concerned about how much incremental demand there is for a hybrid pickup truck, noting increasing "concerns and discussions about whether (hybrids) are really delivering the benefits and the better fuel economy that everyone is touting."