All Mercedes cars to be turbocharged by 2010

Mercedes-Benz will introduce turbocharged engines across its entire lineup in the next 2½ years.

"All our vehicles will have turbocharged engines in series production by the end of 2010 at the latest," Thomas Weber, Daimler board member responsible for research and development, told Automotive News Europe at a press event here.

Forthcoming legislation in Europe and the U.S. is forcing automakers to reduce auto emissions.

Demand for turbochargers is growing because they offer a proven and relatively inexpensive way to reduce fuel consumption. With the addition of a turbocharger, Daimler will be able to install smaller, lighter and more fuel-efficient engines without sacrificing performance.

Under current proposals, the European Commission will ask the German automaker to cut its average fleet emissions from 178 grams per kilometer to 138 g/km by 2012. The Commission will fine automakers that fail to meet the targets.

Improving the efficiency of its existing engines is the first part of Daimler's strategy to reduce CO2 emission levels across its fleet. Weber said the medium-term step would be to introduce more hybrid technology. The S class -- Mercedes' flagship sedan -- will be offered as a full hybrid vehicle starting in 2009.

Weber also said that zero-emission driving is the German automaker's long-term goal. To get there, the automaker plans to use technology such as fuel cells and electric-powered vehicles. A full-electric version of the ForTwo from Mercedes sister brand Smart goes into production in 2010.

Chrysler: bankruptcy speculation has no merit

Chrysler LLC again sought to reassure dealers on Wednesday that reports of its financial distress are unfounded.

"Speculation has surfaced recently in media coverage of analyst reports suggesting Chrysler might have liquidity issues down the road if the U.S. market does not pick up," the company said in a July 9 letter signed by Jim Press, Chrysler co-president, and Steven Landry, executive vice president of North American sales.

"Chrysler has communicated to the media that the suggestion of a possible bankruptcy situation is without merit."

Press and Landry's note quoted a presentation made to the national dealer council June 27 by Lenard Tessler, managing director of Cerberus Capital Management LP. At that presentation Tessler told dealers that a $2 billion loan drawn down by Chrysler from Daimler AG and Cerberus Capital Management LP was something agreed to in the original transaction when Cerberus bought 80.1 percent of Chrysler from Daimler last August.

The loan "was not something that was a result of Chrysler having any need for incremental cash based on financial performance of the business," Tessler said in his presentation. "The company has exceeded all of its financial targets it set for itself from the day we closed the transaction on Aug. 3. The truth behind the $2 billion is that it was a contractual obligation we had to the company and we were simply meeting our obligation as it came due, and it is reflective of our confidence in the ability of the company to weather the storm and move forward."

Press and Landry noted that Chrysler recently adjusted production levels, announcing its St. Louis South minivan plant will shut down indefinitely and production at its St. Louis North truck plant will go from two shifts to one.

The company will focus on higher-mileage models for the rest of the year, the note said.

The note implored dealers to "hang in there and fight for every sale during this period."

Chrysler has been hammered by soaring gasoline prices, which have crippled sales of the pickups, minivans and SUVs that make up more than 65 percent of its sales. Chrysler LLC's car and truck sales plunged 35.9 percent in June compared with last June.