Chrysler pegs hopes on diesel

Carmakers have a number of solutions for reducing their fleet-average fuel consumption and emissions levels, but for a cash-strapped company like Chrysler the options are limited. Some of the ideas being suggested include launching more fuel-efficient models, introducing compact turbo engines and adding more hybrid models but most of these options are expensive and will require significant development time.

Unlike its closest rivals GM and Ford, which offer a range of compact fuel-efficient models in global markets, Chrysler’s lineup is made up mostly of heavy SUVs and sedans. Officials have admitted plans to launch more hybrid models but in the immediate term Chrysler is looking at diesel engines to meet tighter fuel-economy standards.

"We believe today that there is room for diesel," Chrysler exec Deborah Morrissett told Bloomberg. "You are going to see diesels in our product line."

Chrysler currently offers a diesel option for its Jeep Grand Cherokee and heavy-duty Ram pickup, but Morrissett revealed there will be more diesel models soon although she wasn’t willing to reveal which cars specifically.