Commonly referred to as “the poor man’s Rolls-Royce”, the Chrysler Imperial was scheduled to enter production by the end of the decade. Though the current 300 has served the brand well, helping to create a more luxurious image for the smallest member of the Big Three, having a true flagship vehicle to compete with Ford’s Lincoln and GM’s Cadillac was felt to be necessary. The car debuted in concept form two years ago at the North American International Auto Show, complete with rear-hinged doors and a bluff front end that mimicked the look of the ultra-swanky Phantom.

Unfortunately (or fortunately as this was an extremely controversial design), the dream of selling the Imperial has burst. A Chrysler spokesperson confirmed in an interview with Automotive News that development of the ultra-luxury sedan has not only stopped, but production will not occur.

This news is especially troubling to the employees at Chrysler’s Brampton plant who were promised production of another new vehicle in addition to the Challenger, which would ensure a $700 million investment. The Canadian Auto Workers union agreed to wage concessions in exchange for the new vehicle that would keep the plant running at higher capacities.

So what caused the downfall of the Imperial? Besides being tight for cash, the Imperial was a vehicle that was predicted by the media to be not only unpopular but unnecessary. Chrysler’s current flagship product, the 300C is already facing sliding sales, and though a mild update is expected to arrive for 2008, there are still thousands and thousands of existing model year products still on dealer lots. Furthermore, since the split of Chrysler from Mercedes-Benz, new owners Cerberus are more interested in turning a profit, something the Imperial would not guarantee.

The reality, however, has less to do with financial reasons and more to do with the forthcoming proposals by the US government for fuel consumption. Though not yet confirmed, the CAFE (Corporate Average Fuel Economy) standard requires the automobile manufacturers to produce vehicles - including cars, minivans, SUVs and pickup trucks - capable of attaining 35 mpg. Currently the 300, even with its smallest V6 engine is unable to meet these standards, let alone a bigger and heavier vehicle that would require V8 power. MDS cylinder-deactivation or otherwise, we shouldn’t expect much better than half that for the big sedan without the use of diesel or hybrid technologies. And the current CAFE ratings are only the beginning of what is expected to become even stricter regulations.

There is some good news to report, mind you. According to the Detroit Free Press, Chrysler has just invested a reported $1.2 billion into the next generation 300, which will continue to be built in Brampton. These vehicles are expected to arrive on the market in either 2010 or 2011. Also to fill the space that the Imperial would have taken, Chrysler will be allocating its European right and left hand drive production to Brampton, including the Euro-exclusive 300C Touring (wagon). Currently, European-market 300s are built at the Magna-Steyr plant in Austria.

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