Chrysler Works to Find an Alternative

Posted by – Steve Cohen, Director of Community Development

Many believe that the future of the automotive industry lies with its ability to produce affordable vehicles that can run on cleaner, cheaper fuel sources that are produced domestically.  Well, such a vision is easier said than done.

For decades, automakers have been making inroads via trial and error with alternative fuel technologies (e.g., battery electric, compressed natural gas (CNG), propane, ethanol, biodiesel, and hydrogen) with the ultimate goal of diversifying their product line.

What is driving this quest for the “holy grail” of alternative energy vehicles?  In a nut shell, America’s dependence on foreign oil scares the federal government – regardless of which political party is in office – due to the huge economic and geo-political ramifications such instability brings.

Chrysler Group, LLC cares about this problem because the cost of gas at the pump has a direct correlation to car and truck sales.  As a result, they have sought to take control of their own future by investing millions of dollars in research and engineering to build more efficient gas and alternative fuel vehicles.

Thus, we are pleased to report that the Chrysler engineers are working hard everyday to develop mass market vehicles that run on alternative fuels.  If they are able to crack that nut, they will be on to something special.

Yesterday, the City of Auburn Hills issued a Building Permit which will allow Chrysler to construct a CNG fueling station at its headquarters and technical center to accommodate its fleet vehicles and testing activities.

CNG is pressurized natural gas that is stored in a vehicle in a similar fashion to a gasoline tank.  The construction of Chrysler’s private fueling station is on the heels of their announcement earlier this year that they will sell heavy-duty pickup trucks powered by CNG.

Chrysler plans to build at least 2,000 heavy-duty Ram bi-fuel trucks that run on a combination of CNG and gasoline.  Based on the Ram 2500 4 x 4 Crew Cab, the $47,500 truck will be powered by a 5.7-liter HEMI V8 engine.  As shown below, the CNG fuel is stored in a pair of tanks located in the truck’s bed and will offer a range of 255 miles between fill-ups.  A separate 8-gallon gasoline tank provides an extra 112 miles when the CNG tanks are depleted, which is needed for trips in areas where CNG is not available.

Experts believe that CNG has a lot promise as a vehicle fuel since it’s cheap and plentiful in the United States; but the infrastructure needed to deliver the fuel is expensive and lacking.  This infrastructure problem will delay mass market adoption of these vehicles until the private sector finds a way to make a profit selling the fuel.  It’s a “chicken and the egg” scenario, similar to the plug-in hybrid electric vehicle market.

In the meantime, automakers – like Chrysler – are concentrating on marketing their CNG products to fleets that operate within relatively short distances from a refueling hub.  The economies of scale for a large business, combined with the life cycle fuel savings generated by their CNG fleet will often justify the upfront cost of an expensive fueling station.

So, expect to see more and more companies using CNG-fueled pick-up trucks, vans, shuttles, buses, semi-trucks, and refuse vehicles in the future due to the long-term cost savings realized for these fuel thirsty vehicles.  It’s just a matter of time.

We are excited to see that Chrysler is leading the way!