Since the introduction of their all-new Dodge Ram 1500 last summer, Chrysler made it clear that their 2010 Ram 1500 would have a clean and green diesel option. In January, Chrysler said it was delaying the introduction of the diesel light-duty Ram until at least 2011. Frank Klegon, then Chrysler's executive vice president of product development, cited stricter federal emissions standards and the high cost of diesel fuel in announcing the change. Long-time Ram HD engine supplier Cummins, Inc. was set to deliver the new engine.
However, AutoWeek just reported that in a group of supplier rejections filed Wednesday in U.S. Bankruptcy Court, Chrysler killed the contract. Representatives from Chrysler declined to comment, but the automaker is attempting to re-invent its bottom line after emerging from Chapter 11 last week.
Cummins had not expected the "new" Chrysler to assume the agreement, said Mark Land, a spokesman for the engine maker. "We're OK with it," Land said, adding the contract was signed in 2006. "Obviously a lot's changed in Chrysler's world and the world at large since then."
Apparently, a new agreement is in the works. We'll keep you posted.