Filed under: Chrysler, LLC., GM, Nissan
Yesterday, the Rumormill spewed out more bad news for Chrysler: the $3 billion project to design the new "Phoenix" V6 was all but dead. But vice chairman Jim Press says it isn't so.

Press told reporters that the program was moving "full speed ahead" and that prototypes are out in the wild as we speak. There is little doubt that Chrysler needs more efficient V6 engines that can compete with the competition, particularly after spending time with the Dodgeler/VW minivan.

We noted yesterday that either GM or Renault/Nissan already have modern V6 engines, and spending $3 billion to produce something that is just as good or marginally better doesn't sound like a solid plan. And while we believe Press when he says that Phoenix is still on, if a merger happens any time soon, we're guessing future owners won't be interested in investing billions in Chrysler engine programs, unless much of the $3 billion has already been paid for.

[Source: Reuters]

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