Author Topic: Diesel sales outpacing expectations  (Read 1397 times)

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Offline Jeffy

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Diesel sales outpacing expectations
« on: September 08, 2005, 01:31:10 PM »
By JULIE M. McKINNON
BLADE BUSINESS WRITER
http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20050806/BUSINESS02/508060374

DaimlerChrysler AG expects to sell at least 3,000 more diesel versions of the Toledo-made Jeep Liberty, or more than 50 percent more than originally anticipated.



And, as the nation's drivers deal with consistently high gasoline prices, the automaker is gearing up to offer a diesel-engine option on the redesigned Jeep Wrangler next year.

Chrysler this year has delivered nearly 8,300 Liberty diesels, which cannot be sold in California and four other states with higher emission standards than federal requirements, said Max Gates, a Chrysler spokesman.

"We are very pleased," he said. The company originally expected to sell 5,000 diesel Libertys.

Next year, meanwhile, Toledo Jeep Assembly will begin building a second diesel model for the U.S. market when the redesigned Jeep Wrangler is offered with the alternative-fuel engine, said Dan Henneman, chairman of United Auto Workers Local 12's Jeep unit.

Chrysler is considering offering diesel engines in additional U.S. models but has not announced any plans, Mr. Gates said. Diesel versions of heavy-duty Dodge Ram pickups are offered in the United States, too.

U.S. sales of both Toledo-made Jeeps surged last month as Chrysler offered employee pricing to everyone and are now on pace with last year. One vehicle excluded from that ongoing 2005 model program, however, is the Liberty's diesel version, which first hit dealership lots in January and was widely available in March.

Diesel Liberty sales have not taken off at Yark Automotive Group, which has one of the country's largest Jeep dealerships, and don't appear popular in the Midwest, an official said. The Sylvania Township group sold three of the 10 Liberty diesels it ordered within the first couple of months but then sales stalled, said Jack Streit, assistant manager for the Jeep dealership.

"I don't get that many [dealership trade] requests within a 300-mile radius of the store," he added.

The Liberty's 2.8-liter diesel engine gets 22 miles a gallon in the city and 27 miles a gallon on the highway, compared with 17 and 22 for a Limited with its 3.7-liter V-6 engine, according to Chrysler. It also is priced $1,000 or more above the Limited, depending on optional equipment.

Chrysler knows the Liberty's diesel engine will have to meet emission standards set in California and being adopted by other states, and the technology for that is advancing, Mr. Gates said.

Production of the Liberty diesel, he said, depends on factors such as engine availability and capacity for it at Toledo Jeep, where the versions are fueled with B5, a 5 percent biodiesel made from soybeans.
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