Chrysler dropping Jeep Liberty diesel

A week after announcing the diesel-powered Jeep Grand Cherokee, DaimlerChrysler announced on Monday that it has stopped production of its diesel Jeep Liberty.

The oil-burning Liberty launched in 2005 to test the U.S. market's appetite for the fuel, but as the engine in the Liberty does not have DaimlerChrysler's new clean-burning diesel technology, it doesn't meet next year's federal emissions standards. Upgrading the diesel Liberty was deemed too expensive to be worthwhile, so the company is nixing it.

Over 11,000 diesel Libertys have been sold in the 16 months since its U.S. launch. We suspect the Liberty will have diesel power again one day, just not tomorrow.

[Sources: Reuters, DaimlerChrysler]

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