The Chrysler Group announced it would join the United States Climate Action Partnership (USCAP) and endorse mandatory caps on greenhouse gas emissions.
USCAP, a partnership of major companies and NGOs, issued earlier this year a blueprint of principles and recommendations for establishing a multi-sector, market-driven program to swiftly slow, stop and reverse the growth of greenhouse gas emissions.
The group has recommended that Congress establish short- and mid-term emission reduction targets; a national program to accelerate technology research, development and deployment; and approaches to encourage action by other countries, including the developing world.
“Now is the time for advancing a national approach to climate change where all of us – individuals, industry and government – take action toward reducing emissions of greenhouse gases,” said Tom LaSorda, President and CEO, Chrysler Group. “We are proud to be an active member with USCAP in the development of climate policy that addresses energy use and emissions from all sectors of the U.S. economy, and ultimately drives increased energy efficiency.
“We look forward to working with the USCAP members in formulating a system to control greenhouse gas emissions in a way that not just addresses the supply of energy-efficient products and commodities, but also spurs demand for them.”
Consistent with USCAP’s principles, Chrysler Group believes that mandatory reductions of heat-trapping emissions can be imposed without economic harm and lead to economic opportunities if done across the economy and with provisions to mitigate costs. Furthermore, the company advocates an approach that leverages the competitive marketplace as the best solution to this challenge.
LaSorda testified before Congress in March that “if we intend to make meaningful progress in reducing petroleum consumption in this country, in addition to vehicle technology improvements, we look to the Federal Government to establish policies that address consumer demand and bend the bias of transportation fuels toward lower carbon alternatives.”
Chrysler, which is being acquired by Cerberus Capital Management in a US$7.4 billion deal, has trailed other major, competing automakers in key indicators of fuel economy and the roll-out of hybrids.
The company plans to introduce a new “mild hybrid” vehicle equipped with a lower-cost battery pack designed to power the vehicle at stops. It will use hybrid technology it jointly developed with General Motors Corp. BMW AG.
The “two mode” hybrid system can use an on board electric motor to generate additional power as needed, increasing fuel economy by 25%.
It also plans to offer a clean-burning diesel version of the Jeep Grand Cherokee to meet California-style emission standards.
Chrysler projects that hybrid and diesel vehicles could grow to 30% of the US light vehicle market, a tenfold increase from current levels.
Chrysler, the fourth-largest US automaker, currently derives almost 70% of sales from trucks and SUVs.
It is investing $3 billion in new plants in Wisconsin, Michigan, Indiana and Mexico to produce more fuel-efficient V-6 engines and components. The family of “Phoenix” engines, to be available for 2010 models, will increase fuel efficiency 6-8. By reducing vehicle weight and improving aerodynamics, Chrysler also expects to boost its fleet-wide fuel economy at least another 5 percent.
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