DCX announced BlueTec for their E320 CRD... they also sell Liberty CRD's in Germany with a particulate filter iirc. The availability of ULSD will be an influencing factor on when they can ship diesels with the particulate filters and NOx reducing controls. But these rumors keep showing up as variants on the following theme:
1. The Liberty is discontinued for 2008 - based on a redesign mentioned on Allpar.com - this one reported by many who don't like the Liberty and some who genuinely don't know. The rumor transforms a redesign into dropping the vehicle!
2. The CRD will go away in 2007[8] - EPA and CARB finally won - No diesels for you!!
3. An oldie but goodie, both the Liberty and the CRD are gone in 2007[8] - a Liberty and diesel opponents fondest wish.
So, DCX sales are so good that they are willing to drop 225,000 Liberty sales (worldwide) from their bottom line. Oh yeah, this is going to happen real soon.
DCX can develop and sell Hybrids at either a loss or nearly no profit (similar to Toyota and Honda) or they can sell diesels that meet 2007 EPA regulations at a profit. Which way to go, what are they going to do? Notice how Honda is talking diesels now for larger vehicles, not hybrids. Toyota ordered their top engineer to cut the cost of producing hybrids in half. Nissan CEO openly talks about the lousy business model hybrids represent - business speak for no profit involved. Ford complains that the Japanese are limiting Hybrid batteries and other powertrain components to Ford while taking care of Japanese auto companies - gee what a surprise. So GM and DCX should line up for that business model? Unless hybrid component costs reach parity with diesels, there isn't a good incentive to make them. With the Japanese designing and making most of the hybrid technology, when will competition bring the cost down?
Customers are increasingly aware that hybrids are not getting EPA sticker mileage and are not cost effective when compared to even a 4 cylinder manual Civic or Toyta equivalent. As time goes by, the real cost of maintaining a hybrid long term will become even more apparent to the buying public.
So diesel still has a good chance once USLD gets here. So even in worst case scenario, diesels are introduced late in the 07 model year, with dire warnings about using anything other than ULSD, or even for 08, the hybrid alternative is still a weak proposition as a business model.
So lets wait and see if both the Liberty and diesel dissapear for 08
