Chrysler's pricing announcement on its hybrid SUVs comes a week after GM announced it is offering cash incentives of as much as $4,000 on its full-size Tahoe Hybrid and Yukon Hybrid. The move marked the first time that the Detroit automaker had offered any incentives on its full-size SUV hybrids. GM's hybrid SUVs went on sale in late January. Those cash incentives are in effect until June 30.
The 2008 Chevrolet Tahoe Hybrid 4X4 starts at $53,295, including a $900 destination charge. The 2008 GMC Yukon Hybrid 4X4 starts at $53,755, including a $900 destination charge.
Chrysler's unexpected pricing announcements on its hybrids may signal the start of SUV hybrid pricing wars in Detroit, as the domestic automakers struggle to keep consumers in full-size SUVs — hybrid or not — in a summer of skyrocketing gasoline prices.
"Chrysler's hybrid vehicles deliver exactly what SUV owners are demanding in today's marketplace," said Deborah Meyer, Chrysler's chief marketing officer and vice president, in a statement.
Chrysler's decision to drastically undercut GM's hybrid SUVs is even more curious, given the development link between the vehicles. GM's 2008 Chevrolet Tahoe Hybrid and 2008 GMC Yukon Hybrid were the first vehicles equipped with an advanced two-mode hybrid powertrain developed through a ground-breaking cooperation among BMW, the former DaimlerChrysler and General Motors. The Aspen Hybrid and Durango Hybrid are the latest fruits of that endeavor and Chrysler's first entries in the hot hybrid market.
The Durango Hybrid and Aspen Hybrid are set to arrive in showrooms in August. The Chrysler SUVs are outfitted with the 5.7-liter Hemi V8. Total output with their advanced two-mode hybrid system is 385 horsepower and 380 pound-feet of torque. The EPA has yet to post official fuel economy numbers on the 2009 Chrysler SUVs, but the automaker says the two "deliver fuel economy up to 20 mpg — a 40 percent improvement in the city and 25 percent overall."
What this means to you: Chrysler's first hybrid SUVs come out of the gate with some attractive pricing. But the key question is, how will GM respond? — Anita Lienert, Correspondent

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