Fiesta EcoNetic - Making the Case

Ford recently unveiled its 65-mpg Ford Fiesta EcoNetic diesel in Europe. For a production car of any sort, hybrid or non-hybrid, this is remarkable fuel economy. Even considering that measurement is probably imperial gallons, as opposed to U.S. gallons, you're still looking at mileage in the mid-to-high 50s. Still darned good.

Yet Dearborn currently has no plans to sell the Fiesta EcoNetic in the U.S. The reasons the company gives are several and not altogether irrational. Due to the current valuation of the Euro and British Pound relative to the dollar, the Fiesta EcoNetic would sell for approximately $26,000 if brought to the U.S. right now. Secondly, the company claims there's not much of a demand for diesel passenger cars in the U.S.

However, I'd like to point out a few "what if" scenarios that could make this happen. First off, Ford has already committed to selling a gas-powered version of the Fiesta in the U.S. starting in the 2010 model year. Our version will be built in Mexico, a vastly lower-cost production base than Europe. On a short timeframe, it's not realistic to expect an entire engine plant to be built in Mexico for the diesel engine, which Ford says would cost around $300 million or so.

But Volkswagen builds its bread-and-butter Jetta models in Mexico, and for the new TDI models, imports engines and drivetrains from Germany, and installs them in Mexico. Why couldn't Ford do the same? Seems like that would knock several grand out of the cost.

So for argument's sake, you've got a $22,000 car. Then the question is whether enough people would be willing to cough up that sum of money for a car that's smaller than a Prius or Civic, might only be available with a manual transmission, and takes diesel fuel.

The two potential deal-killers here are the price and the lack of an automatic transmission. Like it or not, the Fiesta will compete in a segment that generally has a transaction price of between $11,000 and $15,000. On the high, high end would be something like a Honda Fit with Nav, which might tickle $19,000, fully-loaded. Add to that the percentage of American drivers that still know how to drive a manual transmission is dropping precipitously, and you potentially have a recipe for a lot-sitter. Then again, it could be a smash hit and fly off dealership lots.

But lets remember that the early years of the Prius did not see the blockbuster sales we're seeing now. The first-gen car was a favorite of urban intelligentsia, but few others. It wasn't until well into the second-generation car's model cycle that it became a fixture of suburban driveways coast-to-coast. Arguably, one of the reasons for its success was its conspicuously different styling. The EcoNetic, on the other hand, would look little different from a standard Fiesta to the untrained eye. So other than the driver that's cruising past fuel pumps, who else would know you're saving the planet?

Although I'm all for more economical vehicle choices, and think the EcoNetic could have a chance in the U.S., it's far from a "sure thing", and I think Ford is entirely rational in its reluctance to take this big of a gamble right now. Who knows, in 2012 or 2013, we might just get a diesel-powered surprise in showrooms if the number-crunchers can make a case, and diesel sales surge.

Our question to you is: Would you pay $22-24k for a diesel-powered, manual-trans, 55+ mpg Fiesta?