Chrysler Hybrid SUVs Hitting the Market

The market for hybrid fullsize sport utility vehicles may be small, but Chrysler is determined to get a piece of it, saying that its new hybrids will be nearly $8,000 cheaper than competitors from General Motors. Chrysler said its 2009 Dodge Durango hybrid will have a suggested retail price of $45,340 while its 2009 Chrysler Aspen hybrid will start at $45,570. A comparable fourwheel drive version of the 2008 Chevrolet Tahoe hybrid starts at $53,295, while the 2008 GMC Yukon hybrid starts at $52,855.

Chrysler spokesman Nick Cappa said the hybrid Aspen will cost $3,550 more than a comparable model with a gas engine, while the Durango will cost $3,655 more. Hybrid buyers will be able to reduce that premium with a hybrid tax credit of $1,800, he said. The Durango and Aspen are Chrysler's first entries into the hybrid market and will go on sale in August. Chrysler said the hybrid SUVs get up to 20 miles per gallon and improve fuel economy by 40 percent in city driving and up to 25 percent overall.

Chrysler's hybrid system was developed in a partnership with GM, Mercedes-Benz and BMW AG, and it's the same system that's in the GM SUVs. The system, called a two-mode hybrid, can operate in electric only mode at low speeds or with a combination of the gas engine and electric assistance for more power at higher speeds. Sales of fullsize vehicles have tumbled this year, the victim of high gas prices and growing consumer preference for smaller cars. But it's unclear if hybrid SUVs will lure some buyers back to the segment.