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James F. Thompson Jaime (Blueboy)
Posted on Tuesday, November 26, 2002 - 03:49 pm:   Edit Post Delete Post Print Post

JEEP ADDING DIESEL JEEP
Acknowledging it will be an uphill battle to bring the diesel back to the U.S., Chrysler CEO Dieter Zetsche nonetheless announced plans to launch a version in the Jeep Liberty. A modified version of what Chrysler is already selling in Europe, the 2.8-liter turbodiesel-powered sport-ute will reach the American market in the second half of 2004 and carry a 2005 model year designation. The move carries some risk, Zetsche conceded, because it is unclear that the automaker will have the necessary technology in place to meet tough new emissions standards going into effect in 2007. Meanwhile, Chrysler’s technology chief, Bernard Robertson, admitted that at least initially, “We’ll end up subsidizing the diesel.” Delivering about 25 percent better fuel economy than gasoline engines, diesels now account for 30 percent of the European passenger vehicle market, and up to 80 percent in some countries, such as Austria. But Americans are reluctant to embrace the high-mileage technology, Chrysler officials acknowledged, because they remember the problem-plagued diesels of the 1980s. New systems, such as common rail turbodiesels have resolved such problems as smoke and noise, Zetsche insisted, but it will take some effort to make consumers feel comfortable with diesels. And he called on government regulators to take steps—such as offering tax credits—to encourage the sale of diesels in an effort to reduce American dependence on foreign oil. Chrysler expects to sell about 5000 Liberty diesels annually. Zetsche said if demand proves strong, the automaker will look at adding other models. Meanwhile, DaimlerChrysler’s other big brand, Mercedes-Benz, intends to bring a diesel version of the new E-Class to the U.S. next year. —Paul Eisenstein

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