Chrysler joins Mercedes on V6 for general use

July 4, 2006

BY JOE GUY COLLIER
FREE PRESS BUSINESS WRITER

Chrysler Group and Mercedes Car Group are working on a joint program to develop common V6-engine technology that could be used in all of DaimlerChrysler AG's car brands, Chairman Dieter Zetsche says.

When Daimler-Benz AG and Chrysler Corp. merged in 1998, executives pitched the union as a way to strengthen both companies. Signs of shared expertise are starting to surface.

The Chrysler 300 borrows heavily from Mercedes-Benz on its rear-wheel drivetrain and suspension. A new Grand Cherokee diesel due out in 2007 uses a modified Mercedes engine.

A joint V6 program would be another big step forward. The goal is to pool resources and consolidate the company's engine lineup, Zetsche said over the weekend.

The program will produce a basic foundation with several variations ranging from an economical low-end engine to a more sophisticated high-end version suitable for luxury cars, he said.

"So they are at the end very different engines, but they have commonalities," Zetsche said.

He would not say when the engine would be available for vehicles.

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