Chrysler Ends Contract With Cummins For Diesel Ram

Chrysler is ending its contract with Cummins Inc. to build a diesel engine for the Dodge Ram 1500, which was delayed to the 2011 model year.

After Chrysler filed for bankruptcy, Cummins was not surprised by the news about the contract, which was signed in 2006.

"We're OK with it," said Mark Land, a Cummins spokesman, to Automotive News. "Obviously, a lot has changed in Chrysler's world and the world at large since then."

Much has changed, but Dodge might still offer a diesel light-duty Ram truck in future years.

"That initial contract is dead," Land said, "but the program itself is not dead."

Dodge isn't the only brand cutting back on U.S. diesel plans. Engineering cost and outdated perceptions of diesel seem to be the two biggest factors preventing a wider acceptance of the fuel-efficient technology.

For now, diesel enthusiasts in the U.S. not interested in a heavy-duty vehicle must head to the dealerships of German automakers like Volkswagen, which offers the least expensive diesel vehicle in the country: the Jetta TDI.

Other automakers including Acura, Ford, and Nissan have cut back on diesel development for the U.S. Toyota is -- suprise, surprise -- going to focus on hybrids.

"It's hard to change the mind-set of consumers," said Toyota spokesman Curt McAllister to Automotive News. "Hybrid technology has such a clean halo to it."

Source: Automotive News here and here