Developing new diesel vehicles for the US market must be supported with a solid business case, according to a top product development executive at Chrysler Group.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“We still need to make a strong business case in order to justify expanding our diesel offerings,” Frank Klegon, vice president of development process and components, told a session on advanced powertrains at a motor industry seminar in Michigan last week.
Klegon will become executive vice president, product development, at Chrysler Group on January 1.
DaimlerChrysler diesel vehicles already in the US are the Mercedes-Benz E320 CDI and the Jeep Liberty (Cherokee) CRD. The company also sells Magna Steyr-built diesel versions of the Jeep Grand Cherokee, Chrysler 300C and Voyager in Europe, along with a Toledo-Ohio-built Chrysler PT Cruiser. All bar the Liberty/Cherokee use Mercedes engines.
In the US, more than 60,000 potential buyers inquired about the Jeep Liberty CRD before US-specification production began, and initial production and sales estimates have already been surpassed.
“[To the end of] July we had shipped nearly 8,300 units and sold more than 4,000 – compared with our original estimate that the market might buy 5,000 units the first year,” Klegon said. “Dealers report that the Liberty stays on the lot less than a month, about one-third the industry average.”
Referring to the wider choice of Chrysler and Jeep diesels on sale in Europe, and Stateside speculation more will come to the US, Klegon said: “We can’t just bring a European diesel-powered passenger vehicle and put it unchanged into the US market.”
Differences in consumer preferences, regulations and fuel quality require extensive development to adapt such models for American buyers.
“The fundamental costs are the same whether you are going to produce 5,000 vehicles or 500,000,” adding to the challenge of re-introducing diesel to US consumers, Klegon said.
Recent studies have predicted a doubling of the diesel market in the US over the next several years as the latest engines can provide the power and performance customers want with a typical 30% improvement in fuel economy, as well as reducing greenhouse gas emissions and cutting dependence on oil.
Chrysler said that diesel engines typically run thousands of miles longer than their petrol counterparts and offer significantly higher re-sale value.
The environmental benefits of diesel can be further enhanced with use of biodiesel, fuel made from plants. The Liberty CRD is fuelled with B5 – 5% biodiesel made from soybeans – at the factory in Ohio.
This makes diesel one of the cornerstones of DaimlerChrysler’s overall vision for lessening the motor vehicle’s impact on the environment and on our world’s dependence on oil, Klegon said.
“We’ll keep looking at powertrain alternatives that provide a better experience for our customers or help us meet societal goals like cleaner air and reduced dependence on oil,” Klegon said.
