Tougher emission regulations cited as reason popular version of compact SUV is going extinct.

While DaimlerChrysler’s Jeep brand is touting its plan to build a Grand Cherokee with a fuel-efficient diesel engine, the automaker quietly ended production of a successful diesel version of its Jeep Liberty SUV for the U.S. market.
The reason? The engine for the compact SUV doesn’t meet tougher federal emissions standards that go into effect next year, and Chrysler said it wasn’t cost-effective to the replace the engine with a more modern version.
“The emission standards are becoming very stringent, and we weren’t able to make a credible business case for a limited production vehicle,” Chrysler spokeswoman Dianna Gutierrez told The Detroit News.
Chrysler’s move to stop selling the Liberty in the United States comes despite its success. Liberty sales more than doubled expectations of 5,000 units last year.
In addition, Chrysler has strongly supported diesel engines as a more fuel-efficient option for U.S. drivers. Last week, Chrysler CEO Tom LaSorda touted diesel technology at a meeting of Michigan political, business and civic leaders on Mackinac Island.
LaSorda announced Chrysler will roll out a diesel-powered Grand Cherokee SUV in 2007. Mercedes, Chrysler’s sibling division in DaimlerChrysler AG, will make the Grand Cherokee engine.
“This doesn’t mean that since we’re discontinuing the Jeep Liberty diesel that we’re not committed to diesel,” Gutierrez said.
She declined to say whether Chrysler will eventually market the Liberty with a more modern diesel engine. For 2007, at least, the Liberty will be available only with a gasoline engine.
The diesel Liberty, which is built in Toledo, will still be sold in Europe, where diesels are far more popular and emission regulations are less stringent.
“Our goal was to test (U.S.) consumer interest in a diesel-powered vehicle and, based on the Liberty diesel, it obviously exceeded our expectations,” Gutierrez said.
Dealers are eager to get the diesel Grand Cherokee.
Alan Helfman of River Oaks Chrysler-Jeep in Houston sold 30 to 40 Liberty diesels last year.
“It was a good little seller,” Helfman said. “But the Grand Cherokee will sell even better. The diesel in the Grand Cherokee will be utopia, especially since it’s a Mercedes diesel.”
Italy’s VM Motori makes the diesel engine for the Liberty.
Chrysler’s decision to end diesel Liberty sales in the United States makes sense given the regulatory environment, said Casey Selecman, an automotive analyst with Farmington Hills-based CSM Worldwide Inc.
Volkswagen will temporarily discontinue diesels in the United States and come back with versions that meet the new emissions standards, Selecman said.
“Everybody’s waiting for the diesel fuel quality to change over so that they’re able to use future emissions equipment that they can’t use right now,” he said.
Diesel vehicles account for a small portion of U.S. auto sales, but are expected to grow as high gas prices stoke demand for more fuel-efficient vehicles.
In April, J.D. Power and Associates said light-vehicle diesel sales are projected to grow from 3.2 percent of U.S. auto sales in 2005 to more than 10 percent by 2015.
Holy crap - are the automakers blind, or just blind?
I mean, sales are down for trucks and SUVs as a direct result of the price of fuel in North America. Here’s a way to ensure these cash-cows (trucks and SUVs) can be maintained a sales leaders, and the automakers seem ready walk away from it.
Diesels are nothing new, and the auto-rumor mill says folks like the General (should they survive) are planning an assault in North America with diesels. I guess they’re hoping the drivers of today will forget the butchered cobble-job GM was responsible for in the late 70’s/early 80’s. Back then they simply figured it’d be easy to converty a gas engine to diesel and the market was so starved for fuel efficient vehilces that GM would own the market.

Wrongo - it was a POS - a BIG POS! And that one move single-handedly helped create the image of diesels as slow, under-powered, unreliable, smelly and bad. Because, largely, that particular offering from GM was all of those things.
Fast forward though to today’s offerings, (more accurately this action is known as North Americans getting their heads out of their asses), and we see full-sized diesel-powered pickups capable of embarassing sportscars with their power, while returning mid-20 mpg economy. Pretty damn good when you absolutely need the kind of power to pull houses off foundations.

On the car front, we’ve got Mercedes offering token diesel models to the moneyed few, while VW is left to fly the flag for diesels everywhere and for the common pocket-book.


No wonder they own the market and will continue to do so for years to come.
The Europeans are laughing at us right now. THEY know high fuel costs. THEY know what a fuel efficient car is. THEY know the value of running a small car with a diesel engine.
So, while it’s great to see Jeep saying they’re getting rid of a motor which won’t meet future emissions requirements in NA, for crying out loud - the replacement is the freakin’ Grand Cherokee. COME ON! If I could afford a Grand in the first place, do you think I would settle for the spotty built quality of the Liberty? Don’t you think I WANT to buy the best for myself?
I do - I really do. Trouble is, I can only afford so much. A Grand (stupidly priced now anyway) will only be even MORE EXPENSIVE with the diesel option. And if you think you’ll claw the difference back in fuel savings - think again. Fuel efficiency will only save you so much - just ask those who paid a premium for a hybrid. Sure it’s cool - but what else could I get for my $50,000+?
OK, Jeep - hear me know!
Make the new 3.0 CRD diesel engine available in the Wrangler Unlimited AND the Liberty at a future date - THAT would make things right for Jeep owners. Hell, the Commander, more than any other model, should see this option. Imagine having the Commander and everything it actually is, PLUS more than 20 MPG?
Shit, I might have to consider a second mortgage if that combo came to market…
Parts of this story originally posted here.
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