DaimlerChrysler announced Monday that the company will stop making the diesel Jeep Liberty SUV for sale in the U.S., despite better-than-expected sales in 2005. According to the Detroit News, the compact SUV's engine doesn't meet new tough federal emissions standards that will kick in next year and Chrysler didn't want to put a newer engine into the Liberty. A Chrysler spokeswoman told the Detroit News, "The emission standards are becoming very stringent, and we weren't able to make a credible business case for a limited production vehicle."

The company is not giving up on diesel altogether. A diesel version of the Grand Cherokee SUV is coming in 2007. Diesel Liberty vehicles, which are built in Toledo, will still be sold in Europe. The new diesel regulations have also affected Volkswagen, which recently announced they would not release any diesel versions of their Jetta, Golf or Beetle models in 2007.

[Source: The Detroit News]

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