Chrysler to launch diesel pickup trucks after 2009

TRAVERSE CITY, Michigan (Reuters) - Chrysler LLC will introduce diesel-powered versions of its light-duty pickup trucks after 2009, improving fuel efficiency of the vehicles by up to 30 percent, Frank Klegon, executive vice president of product development, said on Thursday.

"We anticipate that diesels will comprise up to 15 percent in the next decade," Klegon said at an industry conference.

Klegon said the pickup trucks would feature the all-new turbo diesel engine by Cummins Inc. (CMI.N)

The diesel engine, which will meet emission standards in all 50 U.S. states, is expected to cut carbon emissions by up to 20 percent compared with a regular gasoline-powered engine, Klegon said.

Globally, Chrysler sold about 295,000 diesel-powered vehicles last year.

Klegon also said Chrysler would launch a significantly upgraded version of its popular 5.7-liter Hemi V-8 engine.

Rival General Motors Corp. GM.N has also said it planned to offer diesel-engine in passenger cars, sport utility vehicles and other light-duty trucks.

Starting with 2008 model year cars, the United States will begin phasing in what will be the world's strictest regulations for harmful nitrogen oxide and particulate matter emissions.

Diesel cars have had higher exhaust levels of nitrogen oxide than gasoline cars, and automakers have been lukewarm about diesel engines as a solution for boosting fuel economy, citing the high cost of developing an engine clean enough to meet the coming U.S. standards.

(Reporting by Poornima Gupta)