Buying a New Vehicle? Consider The Many Benefits of Clean Diesel Power

SEE ALSO: Diesel Vs. Hybrid
SEE ALSO: Cash For Clunkers Consumer Guide
SEE ALSO: Diesel Sedans Ranked By Combined MPG
SEE ALSO: Diesel SUVs Ranked By Combined MPG
SEE ALSO: Rank All Vehicles by MPG

By Thom Cannell, Senior Editor
and Allene Stark, Contributing Editor
Detroit Bureau
The Auto Channel

Are you as convinced that diesel engines have a role in transporting your family or business as we? Today that hope is dimming. Ford, Chrysler, and GM, plus Honda, Nissan, and Toyota have all retreated from their avowed plans to bring light duty diesel engines to the US passenger car fleet. Additionally, Nissan and Toyota have postponed diesel engines for pickup trucks. In total, these six manufacturers have dropped nine planned diesel powered models due to debut in 2010.

Diesels will continue to be available in GM, Ford, and Chrysler heavy duty pickups and passenger cars and CUVs from Audi, BMW, Mercedes Benz, and Volkswagen (who offer diesel versions for $2000-$3000 over similar capacity gasoline models.)

It's not that diesels have suddenly lost their ability to deliver 30%+ better fuel economy than comparable gasoline engines. The issues are dual, cost and political correctness.

Cost is immutable given the US, and soon the European Union stand on nitrous oxide emissions. Satisfying that single requirement costs as much or more than the engine itself, in many cases. Diesel engines cost more to make and always have, primarily because of expensive fuel injection systems. Adding a turbocharger and the latest piezo-electric common rail high-pressure injection systems further escalates power train costs. In the last two years the addition of particulate filters and exotic exhaust gas treatment devices necessary to meet US EPA regulations has added a reported $3,000-$8,000 to vehicle prices, though Mercedes and VW charge less.

According to two very good sources, Bob Lutz, GM’s outgoing global product maven and Tom Stephens, the executive who replaces him, diesels don’t make sense for North American customers. Lutz contends that diesel engines would add about $6,000 to the cost of an automobile, CUV, or light truck. He also says that at the current low cost of fuel, with diesel priced higher than gasoline, the equation continues to fail.

Stephens' explanation is a bit longer, but more detailed. In an exclusive interview, Stephens said that GM has diesel engines displacing 1.3-liters, 1.7-liters, 1.9-liters, 2.0-liters, and 3.0-liters in other markets, as well as their current 6.6-liter Duramax in North America. Obviously, the company does not lack for diesel engines or diesel technology (and don’t forget the fully-developed 4.5-liter light duty diesel that just got shelved) to use where the company thinks it makes sense (more on that, later.)

According to both executives, Europe has a bias towards diesel power in tax incentives and customer attitude. Either will tell you that putting a diesel engine into a light duty vehicle—a Malibu, Fusion, Camry, Altima, Equinox, Escape, RAV4, Rogue, any minivan, or a Colorado, Ranger, Tacoma or Frontier mini-truck—offers no reasonable payback with their 25% fuel economy benefit. They will extol the virtues of stuffing a 6+-liter V-8 diesel into a Heavy Duty 2500-3500 pickup where fuel economy payback can be 40, 50, even 60% when towing or hauling near-maximum loads. That logic is hard to escape. However…

Europeans are not fools when it comes to power plants. They understand that torque whips horsepower every time you “step on the gas.” It’s torque that pushes you quickly onto the freeway or speedily around two-lane slow boats. With fuel prices in excess of $6, getting the most bang for every Euro is essential. This makes you question the argument about diesel’s payback.

Currently, European vehicles require only diesel particulate filters. To meet upcoming emission regulations, which will be similar to US regulations, they will also pay the price for either nitrous oxide traps or selective catalytic reduction catalysts. They will be expensive, though VW and Audi say (and in the US use) NOx traps they say are sufficient for engines up to around three liters. So, what else is going on?

Green. Green as in dollars and Green as in energy. Green and electric are the political mantras in Washington and if you think that GM and Chrysler do not reflect Washington’s thinking…

The other green, currency and debt, is a more worthy argument. New engines require development dollars, funds that have been spent and the engines created and shelved. Aftertreatment is a high-cost, bolt-on accessory. The real money is in engine plants and tooling that cost 120-250 million dollars to build and equip. That is money the automakers do not have, cannot borrow, and, given the political emphasis on plug-in hybrid electric vehicles and electric vehicles, would be incredibly unwise to push for.

Additionally, a new engine plant requires investment on the part of companies who supply turbochargers, fuel systems, and emissions treatment systems, even commodity metal suppliers. They have less access to capital and are extremely wary of making a commitment to new tooling required to supply a new engine plant. Add to that the topsy-turvy world of contracts where nothing seems enforceable and nobody is going to expend an unprotected dime, cent, peso, pence, yen, or won.

So, despite the fact that 3.0-liter Audi Q7 diesel gets fuel economy similar to a mid-sized sedan at 30 mpg as does a Volkswagen Touareg, or a VW Jetta TDI’s real world 45+ mpg, or the 34 mpg you can easily squeeze out of a Mercedes E320 BlueTEC, you won’t see a Honda with its exotic self-catalyzing exhaust any time soon. Nor will there be a tow-worthy Ford, GM, Chrysler, Toyota, or Nissan 1500 pickup or even a diesel powered Ford Transit Connect.

If diesels come to the US in any timely fashion, it will be the European engines built by GM, Ford, Toyota, Fiat, Honda, and others. Most are barely a year old, extremely clean on their own, and amazingly fuel-efficient. It takes years to build an engine plant so don’t believe any announcement until you see the new facility under construction or a diesel engine option at the dealership.

Author's Note: VW Diesel’s real cost/benefit.

Compare Total Vehicle Operating Costs

Volkswagen says that in June of 2009, 40% of its Jetta sales were TDI and an astonishing 81% of Jetta SportWagen sales were diesel. That 2.0-liter engine has an easily beaten EPA raging of 29 mpg City and 40 mpg Highway and it costs a mere $2000 more than the gasoline version. But Wait! There’s More! Buyers get a $1300 credit for clean air and either vehicle will normally qualify for the full $4500 Cash for Clunkers program.

VW’s Touareg TDI also qualifies for at least $3500 in Cash for Clunkers rebates which makes its $3000 diesel engine premium a benefit, not a liability.

Overall VW’s sales are now 26% diesel and trending towards 30%, according to the company. Maybe American citizens know more than their elected representatives do.