New Energy Forecast Reaffirms Diesel's Potential in U.S. Market

WASHINGTON, Dec. 9, 2004 -- A growing number of American consumers may find relief from today's Energy Information Administration (EIA) prediction of steadily increasing demand and price volatility thanks to a new generation of diesel cars, trucks and SUVs that deliver power and performance, but sip 20 to 40 percent less fuel than comparable gasoline vehicles, according to the Diesel Technology Forum.

In its updated annual energy forecast for 2005 through 2025, EIA paints a picture of increasing demand for petroleum and fluctuating prices. The report -- available at http://www.eia.doe.gov/ -- highlights the need for increasing energy efficiency in the U.S. transportation sector.

"This report reaffirms what experts are increasingly predicting to be a viable market for light-duty diesel vehicles in the United States," said Allen Schaeffer, executive director of the Diesel Technology Forum. "Diesels are an attractive alternative because of their superior fuel efficiency, ability to decrease dependence on foreign oil and lower emissions of carbon dioxide."

A recent study by the Department of Energy (DOE) forecasts growth of 4 to 7 percent in light-duty diesel vehicles in the U.S. market by 2012.(1) Previous studies by DOE have found that a gradual 20 percent penetration of diesel vehicles by 2020 would save the U.S. 350,000 barrels of oil each day. "Since light-duty diesels currently account for only about 0.2 percent of the market today, this growth prediction is substantial," noted Schaeffer.

While U.S. diesel penetration is still not on a par with that in Europe, where diesel technology accounts for nearly 50 percent of all new vehicles, today's American consumers have more diesel choices than ever before. Four new light-duty diesel models were introduced in the U.S. in 2004 (Jeep Liberty CRD, Mercedes E-320 CDI, and Volkswagen Touareg and Passat), making modern diesel technology now available in four key market segments -- from economy cars and family station wagons to luxury sedans and SUVs.

Thanks to advanced engine technologies, today's diesel owners already enjoy a whole new driving experience that is incomparable to what was experienced in the past. And in 2006 new U.S. Environmental Protection Agency clean diesel fuel regulations will take effect that will help enable the virtual elimination of emissions.

"Today's diesel vehicles are clean, quiet and fun to drive, and evidence suggests that 2004 is just the beginning of a new era of diesel options for the American consumer," concluded Schaeffer.

The Diesel Technology Forum represents manufacturers of engines, fuel and emissions control systems. It brings together the diesel industry, the broad diesel user community, civic and public interest leaders, government regulators, academics, scientists, the petroleum industry and public health researchers to encourage the exchange of information, ideas, scientific findings and points-of-view to current and future uses of diesel power technology. For more information about the Forum, visit our web site at http://www.dieselforum.org/.

(1) Future Potential of Hybrid and Diesel Powertrains in the U.S. Light- Duty Vehicle Market, Greene, David L., Duleep, K.C., McManus, W., August 20, 2004.