DaimlerChrysler shows trucks that meet tough fuel goals

But Zetsche wanrs that favoring one technology may have consequences

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(AP Photo)

Chrysler Group President Tom LaSorda, right, introduces the new Dodge Ram diesel at the 2007 Washington Auto Show at the Washington Convention center in Washington, Tuesday, Jan. 23, 2007. DaimlerChrysler announced Tuesday it would be the first to market a diesel heavy-duty pickup truck capable of meeting strict 2010 emission standards in all 50 states.

January 23, 2007

By TIM HIGGINS | FREE PRESS BUSINESS WRITER | WASHINGTON — While introducing work pickups that will meet clean diesel regulations three years ahead of schedule, Dieter Zetsche, chairman of DaimlerChrysler AG, warned during a speech to open the Washington Auto Show this morning that U.S. efforts toward greater fuel efficiency could be hampered by government incentives that single out one technology over another, such as hybrids over diesels.

"What we need to avoid in this country is a legislative bias that favors a single technology, be it hybrid or anything else," Zetsche said. "State and federal governments shouldn't be in the business to giving certain vehicle drive technologies an edge in the market."

He noted that tax credits, such as those on hybrids, and other benefits, such as allowing hybrid vehicles to use special commuter lanes in traffic, could have unintended consequences.

"We may lose out on other technologies that can move us toward our objectives perhaps even faster," he said. "The more efficient solution is to provide equal incentives to achieving the desired outcome, in this case lower fuel consumption with cleaner emission and then let the market decide."

At the show, Zetsche made a big push for diesel engines, a technology that DaimlerChrysler has great experience selling outside the United States.

Zetsche announced that the company’s Dodge Ram 2500 and 3500 with Cummins diesel engines will go on sale this spring and will meet tough new emission standards three years before the 2010 deadline.

Chrysler CEO Tom LaSorda joined Zetsche at the presentation, riding in on one of the new Dodge Rams.

LaSorda said the company will have a light-duty Dodge pickup truck available with a new Cummins clean-diesel technology after 2009.

In recent years, Chrysler has been making steps toward taking greater advantage of diesel engines developed by Mercedes, the main German unit of DaimlerChrysler. Diesel engines tend to be more fuel-efficient than gasoline engines.

LaSorda also said a new Jeep Grand Cherokee with a 3.0-liter common rail turbo diesel will be in dealerships this March with a suggested starting price of $38,475.