Diesels Poised For American Comeback?

By Mike Thomas, FCN

Driven by fuel economy needs and the development of clean diesel technology, new life is being breathed into the possibility of diesel powertrains making a comeback in America's light-duty vehicles.

At the North American International Auto Show in early January, at least five major automakers announced plans to market diesel-powered light-duty vehicles in the United States. Also at the Detroit show was Ford Motor Company's Reflex concept car, showcasing the possibility of a diesel-hybrid powertrain.

All manufacturers are at least looking at the possibility of adding diesels to their light-duty lineups, said Anthony Pratt, an auto analyst with J.D. Power and Associates. Pratt predicted that diesel will power 4.5 percent of new light-duty vehicle sales -- cars and trucks excluding the biggest pick-ups -- by 2012, as compared with only 1 percent last year.

"Modern diesel engines are better than 25 percent more fuel efficient than an equivalent gasoline engine," said Tom Erickson, manager, Gas/Diesel Powertrain Integration. "High fuel prices in Europe have increased the popularity of diesels which has also spurred the development of new clean-diesel technologies. The new diesels are highly refined with increased torque and reduced smoke, odor and noise."

In the United States, diesels for light-duty vehicles all but vanished in a cloud of black smoke during the 1980s, but in Europe a new generation of diesel-powered vehicles is poised to capture more than 50 percent of the non-commercial market.

Ford Motor Company has actively developed clean diesel technology in Europe and for the heavy-duty segment in the United States. "The PowerStroke 6.0-liter V8 diesel engine sells more than all of its competition combined and is chosen by three out of four Super Duty buyers," Erickson said.

Mercedes-Benz announced at the Detroit auto show the goal of introducing five more diesel models into the United States. The current mid-sized E320 CDi diesel sedan will be replaced by a new version with a new engine. It will be joined by the GL320 and ML320 SUVs and the full-sized S320 sedan and R-class sport wagon.

In addition, Honda, Nissan, BMW and Daimler/Chrysler all indicated a renewed interest in diesels.

Currently, Volkswagen is the leader in light-duty diesels in the United States, with the company's diesel sales climbing from 10 percent in 2004 to nearly a third of vehicle sales last year. Along with the Volkswagen and Mercedes models, the Jeep Liberty SUV is available in a diesel alternative.

Diesel light-duty vehicles are sold in only 45 states because of stricter rules on exhaust emissions imposed by California and four other states. The introduction of low-sulfur diesel fuel into the United States later this year is expected to help increase the rate of diesel emissions-control technology, but not to the point of initially meeting the California standards.

If diesels make a comeback in the United States, the rewards are great, according to Margo Oge, head of the EPA's Office of Transportation and Air Quality. "If we had a light-duty vehicle population that was one-third diesels, that could save up to 1.4 million barrels of oil per day in the U.S, the amount of oil the U.S. currently imports from Saudi Arabia," Oge said.

While the current interest in diesels is driven by the need for fuel economy, diesels offer additional benefits, what Erickson calls their value equation. "Diesels by their very nature produce more torque than an equivalent gasoline engine," Erickson said. "The added torque produces significant gains in towing ability. And even more than that, a diesel's responsiveness makes them a great deal of fun to drive."

Diesels are popular in Europe, like these 2.7-Litre V6 engines being assembled at the UK's Dagenham Diesel Centre.