DETROIT -- The Chrysler group will being selling a diesel-powered version of the Jeep Grand Cherokee in the U.S. market early next year.

The diesel Grand Cherokee will be powered by a turbocharged, 3.0-liter V-6 with common rail fuel system. It goes on sale in the first quarter of 2007, the Chrysler group said early Thursday. The engine will be supplied by Mercedes-Benz, and the vehicles will be assembled at the automaker's plant in Detroit.

This will be the second diesel-powered Jeep in the automaker's lineup. Last year the Chrysler group launched a diesel-powered version of the Jeep Liberty. Demand for that model has outstripped supply.

The Chrysler group said fuel economy of the diesel Jeep Grand Cherokee will be up to 30 percent higher than a gasoline-powered version of the SUV. The diesel Grand Cherokee will have a driving range of about 425 miles, compared with about 300 miles for a gasoline version.