DaimlerChrysler is ending production of the fuel-efficient diesel version of its Jeep Liberty SUV for the U.S. market because the compact SUV doesn't meet tougher federal emissions standards that go into effect next year.
Chrysler executives said it wasn't cost-effective to the replace the engine with a more modern version, even though the SUV is proving to be popular.
Liberty sales more than doubled expectations of 5,000 units last year.
Chrysler will continue to sell the diesel Liberty in Europe where diesels are far more popular, fuel is cleaner and emission regulations are less stringent.
Diesel vehicles account for a small portion of U.S. auto sales, but are expected to grow as high gas prices stoke demand for more fuel-efficient vehicles.
In an unrelated action, federal regulators expanded a defect investigation of the front suspension on the Jeep Liberty to include all 2002 to 2006 models of the vehicles with the suspension.
