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Paris Auto Show: Diesel Engines Make Jeep More Euro-Friendly

Chrysler is looking to more than triple Chrysler, Dodge and Jeep sales outside North America. Diesel engines unveiled at the Paris auto show this week should be a big help, especially in Europe, where consumers are diesel-mad.

That's mostly because Europeans put a much higher priority on fuel efficiency. A diesel engine gets up to 25 to 30 percent better mileage than the same size gasoline engine.

Diesels make up a majority of new-car sales in some European markets, but only a tiny fraction of U.S. sales. A few diesel models available in the United States, like the popular Volkswagen (VLKAY.PK) Jetta TDI diesel, are the exception to the rule.

At this week's Paris auto show press preview, Chrysler expected to unveil a new 2.8-liter turbodiesel engine for the Jeep Cherokee, Jeep Wrangler and Jeep Wrangler Unlimited. The latter is the four-door version of the Jeep Wrangler.

The Jeep Wrangler and the Wrangler Unlimited also get Chrysler's first use of fuel-saving Stop/Start engine technology. That shuts the engine off when the car is at rest, say, at a stop signal.

The Jeep Compass and Jeep Patriot crossovers also got a smaller diesel engine variant, a 2.2-liter. At launch, none of those innovations is aimed at the North American market, the company said.

In addition, the redesigned Jeep Grand Cherokee also made its European debut in Paris. Its early development took place when DaimlerChrysler was still a going concern, so it got the benefit of Mercedes-Benz (DDAIF.PK) thinking with regard to on-road ride and handling. That should help make the redesigned model more popular with Europeans.

However, at its launch in Western Europe, the Jeep Grand Cherokee gets only gasoline engines. By next spring, a diesel version will be added for markets outside North America. There are no plans for a U.S. diesel version of the Jeep Grand Cherokee.

The Chrysler five-year business plan calls for it to boost sales outside North America from a relatively paltry 150,000 units to 500,000 in 2014. That would be from just over 10 percent of worldwide sales to about 18 percent.

Chrysler is much more dependent on North America than Ford (F) or General Motors. If Chrysler can tailor its products for Europe, that should help reduce that risk.

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Photo: Chrysler
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