Inspired by styling from the Dakar and Jeepster concept cars, the Liberty was intended as a replacement for the discontinued Jeep Cherokee. Three trim levels were initially offered; the top end Limited, a more rugged looking Renegade and the base Sport. All were made available with either 2WD or 4WD. In 2007, the Renegade trim level was replaced with the Latitude that appeared to focus more on an urban appearance., , The Liberty was the first Jeep to use two new PowerTech engines; the 150 hp 2.4 L straight-4, dropped in 2006, and the 210 hp 3.7 L V6. The VM Motori 2.8 L straight-4 common rail turbodiesel, became available in CRD branded 2005–2006 Sport and Limited models. The overbuilt nature of the diesel powerplant added nearly 200 pounds to the CRD's curb weight versus the gasoline model. DaimlerChrysler introduced the CRD to gauge the marketability of diesel engines in North America; diesels are already common in Europe. The Liberty was also the first Jeep vehicle to use rack and pinion steering., , The Liberty was not the first Jeep vehicle to use an independent front suspension, as the Jeep Wagoneer first used it in the 1960s. However, the Wagoneer with the independent front suspension was never put into production, due to how quickly the bushings would wear out. Jeep exceeded their expectations by selling 10,000 Liberty CRD models in its first calendar year of production. In addition, the Liberty was nominated for the North American Truck of the Year award for 2002., , The Liberty is available with either a part time Command-Trac or full time Selec-Trac transfer case., The Command-Trac transfer case has four positions: 2-HI, 4-HI, Neutral, and 4-LO. The lever is placed in 2WD HI for regular driving. This allows the two rear tires to receive power. The second position, 4WD HI, is used for driving on slippery or loose surfaces. This position locks both the front and rear drive shafts together splitting engine power equally between all four tires. The third position, Neutral, disengages both drive shafts from the transfer case allowing the car to roll freely; this is used for towing behind another vehicle, for example. The last position, 4WD LO is used for situations when higher torque is needed. A common misconception is that 4WD LO provides more traction. It only changes the gear ratio and does not add any more friction between the tires and the driving surface. This position, like 4WD HI locks both the front and rear drive shafts together, and by using a lower gear ratio, allows for 2.72 times more torque (however, the speed is limited to around 25 MPH max). It should be noted that using 4WD HI or LO on dry pavement is hazardous to vehicle components, through driveline binding and wheel-hop., The Selec-Trac transfer case has five positions: 2-HI, 4-HI Part-Time, 4-HI Full-Time, Neutral, and 4-LO. The transfer case is different from the Command-Trac transfer only in the extra 4WD HI Full-Time position. The 4WD HI Full-Time position adds the same traction benefits that the part-time 4WD setting offers, but features an open differential between the front and rear axles to allow the two axles to spin at independent speeds and eliminate drive line binding and wheel-hop. The down side of 4WD Hi Full-Time is that, due to the open differential between front and rear drive lines, at times the drive train will only deliver power to the front or the rear e.g. when the front of the vehicle has reached a high traction surface such as dry pavement and the rear is in sand, the rear tires will spin with 100% of engine power, the front receiving no traction. Under equal traction conditions (front-rear) this position gives the rear wheels 52% of the engine's power and the front wheels 48% of the engine's power. The division of power and open center differential allows the Selec-Trac transfer case to be operated at all times in an "All Wheel Drive" mode with no adverse effects.