BMW, Audi, VW, and Mercedes Benz to dominate US Diesel Market

Many thought that the major car manufacturers were ready to commit to the introduction of diesel-powered vehicles to the U.S. market. However, mainstream automakers like Honda, Chrysler, Ford, General Motors, Nissan and Toyota have dropped their diesel car plans. Why? A Toyota exec said that it is hard for diesel to overcome its reputation of being “smoky and stinky.

Well, that's not the only reason. Even though diesel engines commonly have a fuel economy of 20 percent to 30 percent better than gasoline engines, the major companies nixed the idea because a diesel can add between $3,000 and $8,000 to a vehicle’s price. Moreover, the Environmental Protection Agency has come up with fuel economy and carbon standards that benefit gasoline-electric hybrids over diesel. In 2006, the EPA changed its standards and based them on the assumption that Americans drive 43 percent of their miles in the city and 57 percent on the highway. Diesel seems to only have an advantage if fleet average standards, which assume that a vehicle is driven 55 percent in the city and 45 percent on the highway, are used.

It appears that only the German companies -- Volkswagen, Audi, Mercedes-Benz and BMW --will follow through with diesel in the U.S.


via AutoWeek