Chrysler unleashes Dodge Challenger into an uncertain market

Chrysler tried to temper that image this week by offering buyers a new incentive that caps the price of gas at $2.99 per gallon for three years. But the Challenger isn't eligible for that program.

Chrysler officials point out that they'll have a more fuel-efficient option in the 2009 Challenger lineup. The 2009 SE has a 3.5-liter V-6 with 250 horsepower, compared to the 6.1-liter HEMI V-8 with 425 horsepower that comes standard in the 2008 Challenger SRT8. While Chrysler hasn't released fuel economy figures for its 2009 models, the new option would be comparable to the Dodge Charger sedan, which gets around 20 miles per gallon.

But Mike Wademan, a 22-year Chrysler employee who works at the Brampton plant, said he doesn't think gas prices will affect sales.

"The people who buy these cars aren't really worried about the price of gas," he said. Wademan said employees hope demand will be so high that the plant will add a third shift.

Frank Ewasyshyn, Chrysler's vice president of manufacturing, wouldn't say how many 2009 Challengers the company hopes to sell, but said the plant has enough capacity to meet demand. The plant can make up to 1,368 vehicles a day when it's running on all three shifts.

Chrysler hopes to replicate the success of another nostalgic muscle car, the Ford Mustang, which was a runaway hit after it was introduced in 2004. The Mustang racked up 166,530 sales at its peak in 2006, although sales have fallen significantly as the vehicle ages.

David Champion, the senior director of Consumer Reports' Auto Test Center, says Chrysler is tapping into a huge market of Baby Boomers who are downsizing from SUVs and minivans and want vehicles that remind them of their youth. Champion said the risk of alienating some consumers is far outweighed by excitement about the vehicle.

Rebecca Lindland, an auto analyst for the Waltham, Mass.-based consulting company Global Insight, said this could be one of the last gasps for V-8 powered muscle cars before tougher fuel economy standards take effect.

"Some people will be appalled by it. But there's a portion of the market that's appalled by the Prius too," she said. "This is a fashion accessory. It's not intended to be a practical appliance. This is the type of vehicle that the American marketplace really thrives on and was built on."

___