Mercedes-Benz is giving second life to the former Chrysler Pacifica Advance Design Center and plans to purchase the building in Carlsbad, California. The companies have entered a contract for the sale of the building though it hasn’t closed yet. Terms weren’t disclosed, but the nearly 35,000-square-foot building listed for $7.3 million. Spokespersons for each company confirmed the pending sale. Chrysler closed the site earlier this year as part of a plan to streamline operations. The 20-person Pacifica design team has relocated or left the company.  Mercedes’ plans for its existing studio, 51 miles to north in Irvine, California, are unclear. It opened in 1990 and employs about 18 people, according to company materials. However, it measures about 13,000 square feet–less than half of the size of the Chrysler property.

The West Coast has been a hotbed of design for both automakers.

The Chrysler Pacifica studio opened in 1983 and spawned the Dodge Challenger concept in 2006. It also was responsible for the concepts that led to production versions of the Dodge Intrepid, Plymouth Prowler and Jeep Compass, as well as a number of influential concepts that were not produced, including the Chrysler Millennium and Chrysler Atlantic.

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Much hubub has been made over the current Let’s Refuel America program in which buyers can choose to lock in the price of gasoline at $2.99/gallon for three years courtesy of Chrysler LLC, but the incentive has apparently been successful. Chrysler announced this morning that the program, launched on May 7th and scheduled to end May 31st, will continue for more than an extra month to July 7th.

The deal is that purchasers who choose the Let’s Refuel America program will get a gas card that’s linked to their credit card. They can use the gas card at 97% of the nation’s gas stations, and while the price on the receipt will reflect the actual price/gallon of gasoline, only $2.99/gallon will show up on the purchaser’s actual credit card. The deal doesn’t apply to every Chrysler vehicle (the Viper, Challenger, Crossfire, all SRT models, Sprinter, Ram Chassis Cab and Jeep Wrangler are excluded), and there are limitations like a yearly allotment for gallons and a cut-off after 36,000 miles. Of course, customers can also choose plain old cash back or 0% financing, too.

According to Chrysler, however, many are choosing the Let’s Refuel American program (we’d love to know a raw number, but none were given in the press release after the jump), and the vehicles with the highest take rate are the most fuel efficient ones in the company’s lineup like the Dodge Caliber, Journey, Avenger and Chrysler Sebring. The states that in which the program is most popular are California, Connecticut, Indiana, Ohio and Washington.

So clearly the program is working for Chrysler, enough at least to extend it another month. This means that it’s helping dealers sell cars, though we wonder what happens if the cost of gas goes up as much in the next three years as it has in the last three years. Could this program end up hurting Chrysler’s bottom line in exchange for the short term gain of selling more cars, or has the automaker somehow hedged its bet against that scenario?

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Chrysler has officially announced that the drag package for its upcoming Challenger, initially shown at SEMA in late 2006, will be released on an unsuspecting public. Previous rumors have the drag pack getting hi-po versions of the 5.9-liter Magnum and Hemi V8’s, while jettisoning around eight-hundred pounds of dead weight unnecessary for mass-acceleration. The National Hot Rod Association is said to be going through the package as we speak in order to certify it for racing duty. After all of the necessary paperwork is complete, the Challenger is expected to race in the Stock Eliminator class. According to Chrysler spokeswoman Patricia Georgevich, Chrysler is looking at a possible introduction in July.

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Chrysler’s last few years have been emblematic of the difficulty some of the older portions of the automobile industry are having adjusting to the increasingly mature, saturated and urban U.S. and global automobile markets. But Chrysler isn’t counting itself out yet. Repackaging the Chrysler structure as a smaller, lighter company is going well, according to Chrysler’s top executives, but it’s not going to be quick - or painless.

Though they don’t hold hope for a profitable 2008, and are doubtful about next year as well, the top brass at Chrysler think it will weather the reformulation of its business to emerge more fit for today’s auto industry. The company is on plan or ahead of its goals to return to profitability, according to CEO Bob Nardelli. They are also proud of their ability to keep fighting despite the tough times.

“Lesser companies would have buckled,” said Nardelli, speaking with the Detroit Free Press.

The company continues to streamline its dealer network, vehicle lineup and worker pay structure as it slims its business model to fit the times. But all of these initiatives are slow, careful maneuvers that will take five to seven years to complete.

The company is also taking some creative new steps to help ensure its changes keep it relevant to the people that will buy its cars. A design forum for the public that allows up to 5,000 people to give their input on videos, presentations and upcoming products will help guide Chrysler’s future direction.

And although the Dodge Challenger - especially the potent SRT8 version - isn’t slated for high-volume sales, the image of strength and performance it presents is something that’s been missing from the brand’s stable, with the notable exception of the Viper, for quite some time. The greater availability and therefore visibility of the new muscle car should help kick start the change in perception the company is seeking as it moves forward.

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Chrysler Crossfire

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Chrysler Aspen

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Chrysler 300

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Chrysler Town And Country

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Chrysler PT Cruiser

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Chrysler Pacifica

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