"No technology is going to make any significant difference unless it has market
penetration," Marc Chernoby, vice president of advance engineering at Chrysler
Group, said in an interview with AFP at the auto maker's headquarters in Auburn
Hills, near Detriot.

"The only way you're going to provide high volume is by providing value."

Even if hybrid sales were to continue to double in the coming years, they would
still represent a fraction of vehicles on the road, Chernoby said.

Most US consumers simply are not willing to spend several thousand dollars more
for a hybrid. And even if they were, the components are not yet available from
suppliers in large quantities, he added.

According to the US Environmental Protection Agency, the hybrids currently
available save the average driver anywhere from 300 to 600 usd (230 to 460 eur)
a year in fuel costs.

With current markups of around 6,000 to 14,000 usd (4,600 to 10,700 eur) over
the base models, gas prices would have to double for most consumers to recover
that initial expense.

Chrysler is employing a multi-pronged approach to reduce gas consumption focused
on: increased fuel efficiency in traditional engines; developing hybrid
vehicles; expanding diesel vehicle sales; and more than 1 bln usd (765 mln eur)
investment in hydrogen fuel cell technology, Chernoby said.

"We think there's a place for all of these technologies," he said. "We think
there's room in the market place even for simple things like the electric car."

The company has decided to wait until 2008 to introduce a hybrid model -- the
Dodge Durango -- in order to hit the "sweet spot" of the market, Chernoby said.

The Durango will be more efficient than current hybrid models because it has
electric motors buried in the transmission that can operate in tandem with the
gasoline engine even at high speeds.

Current hybrids are limited in that the electrical motor only operates at low
speeds.

Chrysler is also focused on expanding the market for diesel-powered vehicles
which can improve fuel economy by an average of 30 pct and lower carbon dioxide
emissions by 20 pct, although they do release higher levels of other pollutants.

About 44 pct of new vehicles sold in Europe are diesel-powered compared with
less than 3 pct of the US market.

A 30 pct market penetration of diesel vehicles would reduce US net crude oil
imports by 350,000 barrels per day, according to the US Department of Energy.

The most promising innovation is the development of hydrogen fuel cells,
Chernoby said.

Hydrogen-powered vehicles emit nothing but water which is clean enough to drink.
But they are still in the experimental phase and it will take a massive effort
by automakers, regulators and energy companies to provide the necessary
infrastructure to introduce hydrogen vehicles into popular use, Chernoby said.

"Global harmonization is critical because the cost of the technology is huge,"
Chernoby said. "The big challenge is going to be satisfying the value equation
for a large group of customers."