Dodge to trot out new Challenger

Don Hammonds, Pittsburgh Post-Gazette DAYTONA BEACH, FL - - The Dodge Challenger, a storied, high-performance "pony car" of the 1970s that sells for around $500,000 in some restored versions, will return to production as a 2008 model.

The announcement will be made today by DaimlerChrysler officials prior to the start of the Pepsi 400 NASCAR race at Daytona International Speedway, where the Dodge Challenger Coupe concept car is scheduled to make an appearance. The concept car was introduced at the North American International Auto Show in Detroit in January.

The concept coupe bears a strong resemblance to the 1970s era Challenger, which went out of production in 1974. But Chrysler officials have been careful to say that the new Challenger should not be considered a "retro" car or a copy of the old model. It will be built on the same platform as the popular Chrysler 300 and Dodge Charger. The 2008 production version is expected to be strongly similar or possibly even identical to the concept car.

Many industry analysts believe that the return of the Challenger was inevitable, given the sales success of the current generation of the Ford Mustang and the expected return of the Chevy Camaro in 2009, which also was introduced in concept form at the auto show.

"I think it's cool," said Jack Nerad of Kelley Blue Book. "A lot of people certainly liked the Challenger. I did early on and I certainly liked what I saw in the Challenger concept that we saw in Detroit. I always thought that modern vehicles could survive in the pony car segment [named because they were created in response to Ford's Mustang]. There's a groundswell of people out there who find that kind of car appealing."

The expected announcement by Chrysler today is likely to put considerable pressure on GM to not only reintroduce the Chevy Camaro, but also to do so sooner than the current 2009 time frame that has been bandied about in the industry.

It also may lead to the reintroduction of other pony cars -- rumors already have circulated that Pontiac may bring back the Firebird. Mercury Cougar, AMC Javelin and Plymouth Barracuda were other pony cars sold in the late 1960s and early 1970s.

Any competitors for Challenger likely would be built on the same platform as current models -- a step that saved money and cut development time for Chrysler. For instance, it would be relatively easy for GM to return the Firebird to production if it decides to go with the new Camaro.

"I wouldn't be the least bit surprised," Mr. Nerad said. "It's like the Pontiac Solstice and the Saturn Sky. They're built on the same platform, so why not get more mileage out of it."

The arrival of the Challenger also suggests that Chrysler will continue to develop a strongly individual identity for Dodge, which has been known as the performance brand for the company.
Not so very long ago, Dodge and Chrysler products were almost identical, but now the brands each have products unique to them.

That strategy is a smart one because in a market that is strongly driven by styling, brand identity and image, cars that are too similar to others or that have muddled marketing strategies are likely to fail, analysts say. That's why Ford, for instance, is crafting a stronger and more unique image and styling direction for its Lincoln and Mercury brands, moving them further away from the Ford brand.

The original Challenger was introduced in 1969 as a 1970 model and was available in high-performance "Hemi" engine-powered or 440-cubic-inch versions -- some even came with a six-cylinder engine.

It's unknown how many versions Chrysler will produce this time around, although there surely will be a high-powered Hemi-engine model as well as milder versions.

Industry analysts also consider a convertible version to be inevitable, given that Mustang has one and some auto buff magazines say Chevy will build its new Camaro in convertible form, too.
While the old Plymouth Barracuda, which shared a platform with the Challenger, competed with Chevy's Camaro and Ford's Mustang, the Challenger, slightly bigger and roomier than the Barracuda, competed with Mercury's Cougar and Pontiac's Firebird.

Today, restored Challengers and Barracudas routinely sell for six figures at auction houses and a few extremely rare versions with big engines have sold for $1 million or more.

The Challenger can't come soon enough for Chrysler. In response to slowing sales, the Chrysler Group will offer employee discounts to everyone on most 2006 models, beginning today and lasting through July. The discounts average 10 percent off the sticker price.

In addition to employee pricing, Chrysler's incentives give buyers the choice of zero percent financing for 36 months or rebates that vary by model.