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Selling Diesel in the U.S. Market

Selling Diesel in the U.S. Market. Jeff Bell Vice President Chrysler & Jeep Motor Press Guild Luncheon Tuesday, June 7, 2005. Diesel Is Steadily Growing In Europe. More than 40 percent of all new cars sold in Europe are diesel.

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Selling Diesel in the U.S. Market

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  1. Selling Diesel in the U.S. Market Jeff Bell Vice President Chrysler & Jeep Motor Press Guild Luncheon Tuesday, June 7, 2005

  2. Diesel Is Steadily Growing In Europe More than 40 percent of all new cars sold in Europe are diesel 2/3 of Chrysler and Jeep vehicles sold in Europe are diesel powered

  3. U.S. Sales Are Climbing • 470,000 diesel passenger vehicles were sold last year in the U.S. • 90% are heavy-duty pickups • The trend is up, but there are still obstacles in terms of broad acceptance Number of registered light-duty diesel vehicles 56%

  4. Battling With History Many diesel vehicles of the ’70s and ‘80s disappointed consumers

  5. Jeep Liberty Diesel Is Off To A Strong Start • Chrysler Group is the first North American-based manufacturer offering a modern diesel in this market • Equipped with a 2.8L common rail diesel (CRD) • 60,000 consumers have expressed interest • Stay on dealer lots an average of 23 days • 3,000 already sold • Shipped more than 6,000 to dealers

  6. Dispelling The Myths • Today’s diesel engines have been infused with modern technology resulting in… • 80% particulate emissions • 70% NOx emissions • 15% fuel consumption • This is definitely not a loud, smoky, sluggish diesel! • 50% power • 30% torque

  7. Diesels Are Renowned For Durability As a result, Chrysler Group is extending the diesel engine warranty on the Dodge Ram, Dodge Sprinter and Jeep Liberty CRD to 5 years/100,000 miles Residual Value Difference Gasoline vs. Diesel $ $

  8. Estimated savings $300 - $500/ year 30% market share diesel = reduction of 350,000 barrels/day Contending With High Gasoline Prices • Jeep Liberty CRD achieves 21 mpg in the city and 26 on the highway • 22% better fuel economy over comparable gasoline model • Cost of fuel is a national concern

  9. Biodiesel Reduces Dependence On Oil • After assembly, a B5 Mix derived from locally grown soy beans is put it every Jeep Liberty CRD • Federal government provides financial incentives to distributors • Equal to 5 cents per gallon of B5 • Working to set national specifications • Goal: extend warranty policies to vehicles using B20

  10. The Performance Benefits of Diesel Best-in-class… • Torque – 295 pounds-feet at 1800 RPM • Driving range – 500 miles • Towing capacity – 5,000 pounds

  11. Word Is Spreading… Without Traditional Advertising

  12. Finding Fuel - Addressing Customer Concerns Yahoo! Maps will find diesel locations • Home page buy – March 16, 2005 • Over 147 million impressions delivered • Over 233,000 click throughs to Jeeplanding page on Jeep.com

  13. Diesel Strategy Is In Line With Our Overall Vision Chrysler Group is working to lessen the impact on the environment and reduce dependence on oil • Improve the internal combustion engine • MDS improves fuel economy by up to 20% • Fueling necessary infrastructure development • 1.5 million vehicles on the road capable of running on E-85 flex fuel • For 2005, FFVs include Dodge Ram 1500, Sebring/ Stratus Sedans and Minivans

  14. GEM Neighborhood Vehicles

  15. The Hybrid Movement • Chrysler Group started with the development of the Dodge Ram 2500/3500 Quad Cab heavy-duty pickup • Now, we’ve entered a partnership with GM to develop a state-of-the-art, full hybrid architecture • Potential to leapfrog the current designs

  16. Hydrogen Holds The Greatest Promise For Replacing Fossil Fuels DaimlerChrysler has 100 fuel-cell powered vehicles on the road – more than any other manufacturer

  17. The Standards Continue To Toughen Tailpipe emissions standards have advanced greatly over the last decade and continue to be reduced Tier 1 1994 Tier 2 Max 2004 NLEV 2001 Tier 2 Max 2009 Tier 2 Avg.

  18. What Is It Going To Take To Sell Diesel In The U.S. Market? A combination of… Engineering Educating Encouraging

  19. Questions?Jeff Bell Vice President – Chrysler & JeepJim WeidenbachSenior Manager - Diesel Powertrain Product TeamLoren BeardSenior Manager - Fuels Technology

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