UK: BMW eyes US launch for diesel-powered cars

BMW already has a vast range of diesels in Europe from the entry level 1-series hatchback to the luxury 7-series sedan pictured

London UK July 19, 2006; Auto industry website Just-Auto.Com reported that BMW is looking to launch diesel-powered cars in the US by 2008, according to a a published report in the UK.

The Financial Times, reporting from the British International Motor Show, said the company was going to use a urea-based additive to meet emissions standards.

"Urea will take another two years but then diesel is really clean and can be sold in all 50 states," the paper quoted BMW sales and marketing head Michael Ganal as saying.

"The US is more open to diesel than two or three years ago."

Prospects for diesel engine vehicles in the US light vehicle market are positive on the back of high petrol prices and increased manufacturer interest in offering diesel options, according to a research report published by just-auto.

But growth is unlikely to be spectacular, with hybrids retaining an important role as an alternative to petrol in the US auto market mix. However, European manufacturers are the most likely to seize the diesel initiative, as they have market-ready products, but much depends on pricing, the research suggested.

Year-on-year figures suggest that diesel registrations within the light duty segment rose by 30% in 2005. Move the accounting period back to 2000 and broaden the scope out to include light and medium duty vehicles, and the increase is over 80%, from just over 300,000 units to 543,777 last year. But stick with just the light duty segment, and the increase is one of 95%, from 22,543 units in 2000 to 44,031 in 2005.