DaimlerChrysler to Invest $40 Billion in North America despite Cutbacks by GM and Ford

The following day Chrysler Group CEO announced its first production hybrid electric vehicle (HEV) would be introduced in 2007

Chrysler Group announced its first production hybrid electric vehicle (HEV) would be introduced in 2007 or 2008. (Photo: Trevor Hofmann, Canadian Auto Press)

or 2008, and unlike current HEV products put out by Toyota, Honda, Ford and GM, the Auburn Hills product would be a full-size SUV, based on the next-generation Dodge Durango.

A DaimlerChrysler spokesman explained away the automaker's late arrival to the hybrid party by citing a need for lower cost components and better fuel economy. Only time will tell if DCX's decision to continue marketing diesel vehicles, which deliver similar fuel savings for less complexity and lower costs, instead of developing a road-going HEV, was prudent.

The DCX hybrid will be co-developed in a joint venture with General Motors. The system will first be used by GM when the Detroit-based automaker's Chevrolet Tahoe and

An F500 Mind concept was available for test drives at a makeshift autocross course set up in the parking lot off of FedEx field. (Photo: Trevor Hofmann, Canadian Auto Press)

GMC Yukon hybrids debut in late 2007, expected to be the first application of hybrid power in full-size SUVs. It should be mentioned that the DaimlerChrysler-GM HEV will be a full-hybrid system, similar to that offered by Toyota and Ford, and not a mild-hybrid such as Honda's, a design also used in GM's Chevy Silverado Hybrid and GMC Sierra Hybrid models.

Most likely, Toyota, and possibly Ford and Honda will offer full-size SUVs with hybrid powertrains before either GM or Chrysler Group, and with a lead time of two to three years any rival has ample opportunity to thwart the two domestic automaker's efforts to come up with a market segment exclusive.