Chrysler Group today announced that they will be significantly improving the overall gas mileage of their vehicle lineup by introducing new hybrid and diesel  models over the next few years.

"Chrysler Group is focused directly on improving fuel efficiency across our vehicle lineup," said product development chief Frank Klegon. "We have developed and are implementing a series of major initiatives - including a bigger push in hybrid and clean-diesel technology - to meet the needs of American consumers."

This is seen as a smart move for Chrysler, which - like other domestic automakers - has seen its market share dwindle over the last few years. Japanese automakers Toyota and Honda, already known for their fuel-efficient vehicles, are continuing to make record sales here in the US.

Chrysler will be adding a clean diesel engine to the 2009 Jeep Cherokee SUV, and improving the efficiently of the company's 5.7-liter Hemi and 4.7-liter V8s for better gas mileage. Chrysler expects fuel efficiency gains of 6 to 8 percent in its new "Phoenix" family of engines, available in 2010.

The Chrysler Citadel concept vehicle uses a hybrid power train.