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October 19th, 2008


In preparation for the acquisition of or by General Motors, Chrysler appears to have dropped its ongoing construction for building the Phoenix engine family, which would have been a world-class V6 with direct injection, variable valve timing, and multiple displacement systems. No confirmation has been received but a plant which was to make engine components has reportedly been told that the project is no longer going forward.

Late last week, Chrysler suddenly stopped the dual-clutch automatic transmissions project as well, by cancelling its agreement with Getrag. If true, the close proximity of the events suggests that negotiations with General Motors are going well for Cerberus - and very poorly for Chrysler buyers and employees.


Fron our friends over @ allpar

http://www.allpar.com/news/index.php/2008/10/rumor-phoenix-v6-engine-cancelled/
 
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