The modern era

DaimlerChrysler and a new mission

2006 Dodge Charger SRT8 sedan

Chrysler Corporation merged with Daimler-Benz AG in 1998 to form DaimlerChrysler, touted initially as a "merger of equals". Rationalizing Chrysler's broad lineup quickly became the first order of the day, and Dodge's sister brand Plymouth was chosen for the axe. With this move, Dodge now became the company's low-price leader as well as its performance division.

Most models, including the Intrepid, Stratus and Neon, were redesigned in a careful evolutionary way during the early 2000s as the company felt things out. Dodge's first experience of any synergies with the German side of the company came in the form of the new Magnum sports wagon, introduced for 2005 as a replacement for the Intrepid. Featuring Chrysler's first mainstream rear-wheel drive platform since the 1980s and a revival of the Hemi V8 engine, it was a modest success. But it was the rebirth of the Charger in 2006 on the same platform that was the real winner. Offered in a variety of models ranging from very mild to very wild, it quickly became a top contender in the mid-size market.

Further synergies were explored in the form of an extensive platform-sharing arrangement with Mitsubishi, which spawned the Caliber subcompact as a replacement for the Neon and (in a limited way) the Avenger sedan. The rear-drive chassis will be used in early 2008 to build a brand new Challenger, in the same style as the original 1970 edition.

In Spring 2007, DaimlerChrysler reached an agreement with Cerberus Capital Management to sell off its Chrysler Group subsidiary, of which the Dodge division remains a part.

In Spring 2008, Dodge released a commercial claiming that, upon purchase of a Dodge vehicle, they will guarantee that the buyer will only have to pay $2.99/gallon in gas costs for the next 3 years.