Link: wsj.com

DODGE CHALLENGER GETS GREEN LIGHT FOR PRODUCTION

Tomorrow, Chrysler is expected to announce at a Nascar race in Daytona Beach, Fla., that it will produce a new V8-powered Dodge Challenger coupe styled after the 1970s muscle car of the same name, people familiar with the company's plans said. Although the car won't arrive in dealerships until next year, it will be featured in summer promotions that Chrysler hopes will pull customers into showrooms, these people said.

The announcement of the Challenger launch, which has been eagerly awaited by fans of the original muscle car, was moved forward by several months in hopes that it would create some buzz for Chrysler, these people said. Chrysler has struggled to separate itself from the negative news overshadowing its two ailing Detroit rivals, General Motors Corp. and Ford Motor Co.

The launch highlights some development and manufacturing advantages that have emerged for Chrysler recently. As part of its restructuring a few years ago, the car maker overhauled the way it designs and manufactures cars to cut time and cost.

The Challenger will be the fourth vehicle produced from the same components used to make Chrylser's hot-selling 300 sedan. While the first vehicle cost $1 billion or more to develop, the others each cost about a third of that, auto experts estimate. Chrysler will reap other savings because it will build all four of the cars on one production line at a plant in Brampton, Ontario.

Reusing parts also cut the time it takes to develop the car. Chrysler first showed a Challenger concept last January. At the same time, GM presented a concept for its own muscle car, a new Camaro, but that car is still at least two years from production.

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Chrysler to announce plans for new Challenger-WSJ
Fri Jun 30, 2006 12:10 AM ET



NEW YORK, June 29 (Reuters) - The Chrysler division of DaimlerChrysler AG <DCXGn.DE> is expected to announce on Friday a new Dodge Challenger coupe styled and named after the automaker's 1970s muscle car, The Wall Street Journal said.

The V8-powered Challenger won't be sold until next year, but Chrysler will promote the car this summer to try to pull customers into showrooms, the newspaper said, citing people familiar with the company's plans.

Chrysler's announcement of the new Challenger tommorow at a Nascar race in Daytona Beach, Florida, was moved forward by several months in hopes it will create some buzz for the automaker, the newspaper's sources said.

Chrysler also is expected to unveil details an employee-pricing discount plan for consumers in a campaign that will feature DaimlerChrysler Chairman Dieter Zetsche, the Journal said.

Zetsche discussed the campaign with reporters on Tuesday. The new incentive blitz will cut pricing for a limited time to a level company employees normally pay for most Chrysler, Dodge and Jeep vehicles, dealers in the know told the Journal.

Customers will be offered interest-free loans of up to 36 months and a guarantee that