More proof that American car companies just don’t get it comes this week as Chrysler announces a new diesel engine option for the Dodge Caliber. The Europe only engine is an all new 2.2-liter common-rail diesel (CRD) developed with Daimler before the big divorce.

This all-new Euro V capable engine is paired to a six-speed manual transmission and produces 163 hp and 236 lb.-ft. of torque. This combination will no doubt deliver 35-45 mpg for European customers while also meeting stringent clean diesel standards.

This all brings the question of why if they can design and engineer these cars here, they can build them here, why cant they sell them here? In Chrysler’s weak position in the American market right now, don’t they think that something bold like a diesel engine option might be just the thing to start moving some of their distressed products. Namely, we refer to products like…….the Dodge Caliber for instance.

According to their “What’s new for 2010” product guide, there is nothing new for showrooms this year. How will Chrysler survive when they have nothing to woo new buyers into the showrooms? The diesel option just released for the Caliber could change things considerably. The Euro-only diesel options they have for the Jeep Liberty and Chrysler 300 sedans could also be a shot in the arm for dimly lit and demoralized dealers across America.

But even though the company is now owned by Fiat, who knows well the virtues of diesel cars, don’t hold your breath. There are still likely many American executives up in Auburn Hills who still foolishly believe Americans don’t want diesel cars. All the while Volkswagen sells every one they can build.