Chrysler Eyeing Natural Gas As Interim Green Stragegy

By John O'Dell June 30, 2010

logoCNG.gifBack in November, Chrysler Powertrain chief Paolo Ferrero said that natural gas engines could begin playing a role in Chrysler's drive to improve its overall fleet fuel economy.

Now the former Fiat executive - who changed jobs when Fiat took control of the U.S.automaker as part of Chrysler's bankruptcy reorganization - is beginning the push that likely will see quite a few of Chrysler's vehicles being offered with CNG and LPG options within a few years.

Company executives see the clean, relatively inexpensive fuel as a way to help Chrysler remain competitive in the green arena as competitors bring out electric-drive vehicles. Chrysler's present product plan has EVs and plug-in hybrids fairly far down the priority list because of the high cost of development.  

It is no coincidence that Fiat has a whole range of natural gas engines Ferraro could draw from for use in Chrysler cars and trucks.

Natural gas has been a favored alternative fuel in Europe - especially Italy - for years and most new cars sold there can be had with flex-fuel systems, either from the factory or from aftermarket suppliers, that enable them to run on gasoline or natural gas. Some use natural gas as propane - LNG, or liquified natural gas - and others as compressed natural gas, or CNG.

Chrysler could use the engines, which run substantially cleaner than gasoline or diesel engines, to help reduce its corporate CO2 footprint.

The CNG-powered Honda Civic GX, the only factory-built natural gas vehicle sold in the U.S. today, is rated as a near-zero emissions car and in California and a few other states is granted the same "clean air" car priveleges - solo driver access to carpool lanes and free parking in some communities - as electric cars.

CNG also is priced lower than regular unleaded gas, giving GX drivers a break on fuel costs and, becausse it burns more cleanly that gasolione, a break on routine engine maintenance and oil changes as well.

CNG engines are more expensive than gasoline engines because they require dedicated fuel systems and must be substantially beefier than gas engines to handle higher compression ratios, but the Civic GX qualifies for a $4,000 federal clean car tax credit, which helps offset its higher price. 

Chrysler would love to be able to offer those plusses to its customers and by using engines already developed and built in volume by Fiat would likely be able to bring the vehicles to mmarket at a much lower premium than Honda charges, making a tax credit for purchasers even more attractive.

Marchionne and Ferraro have joined others in government and the auto and fuels industries in calling for more federal financial support of natural gas fueling infrastructure development and for continued subsidies for purchase of natural gas vehicles. 

The liklihood of a string of Chrysler natural gassers became evident at a recent industry gathering in Michigan where, the Detroit News reports, Fiat and Chrysler CEO Sergio Marchionne said natural gas "is the most effective solution, in terms of costs and timing, to lessen this country's reliance on oil."

Marchionne also called it "a rational alternative to gasoline that can provide a near-term environmental solution on the road to vehicle electrification."

Fiat sold 130,000 natural gas powered cars in Europe last year and has a range of CNG powerplants running from tiny minicar engines of under 1.0-liter displacement to hulking 7.8-liter truck and bus engines.

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