it's just a joy to watch capitalism work ... Diesel Gets Another Chance Drive in a Chrysler Sedan From Europe Could Hint At Future for the U.S. May 8, 2006
I spent part of last week driving around in a diesel-powered Chrysler 300 sedan that was fast enough to zip me past the speed limit before I even knew it, yet still averaged nearly 28 miles per gallon in city and highway driving, compared to an EPA rated 22 miles per gallon for a U.S. street legal gasoline V-6 model. Right now, you can't buy the Chrysler 300 CRD in the U.S. I borrowed mine from a friend in the business whose mission was to demonstrate the latest in European diesel technology. It's not clear whether Chrysler will ever offer this European spec diesel 300 in the U.S. But it looks like diesel power is about to get its best shot in at least 20 years in the U.S. car and light truck market. As gas prices have gyrated during the past couple of years, much of the discussion of how Americans could dramatically cut down on gasoline consumption has focused on gas-electric hybrids. Diesel technology, the solution favored in Europe, was marginalized as too dirty, too expensive and too redolent of the gas shocks of the 1970s and 1980s. Now, auto makers, led by Europeans but with Japanese and U.S.-based producers right behind, see an opening created by a convergence of cleaner diesel technology, cleaner fuels and U.S. consumers who are starting to get the feeling that the days of super cheap gas are really gone. This fall, big oil companies will be required to supply the U.S. market with the low sulfur diesel fuels that the advanced diesel engines sold in Europe, along with their exhaust scrubbing technology, need to run properly. Auto makers are poised to jump on this opportunity to expand their diesel offerings in the U.S., basically transferring the technology developed to meet European fuel economy and environmental standards, plus some extra hardware they'll need to achieve tougher U.S. clean-air targets. Within the next few years, American consumers could see substantially more diesel options available for large sedans, sport utility vehicles and half-ton pickups. Around 3% to 4% of light vehicles sold in the U.S. are equipped with diesel engines. Industry executives say they're comfortable with a J.D. Power and Associates estimate that by 2010-2012, diesel could have about a 10% share of the U.S. market. John Moulton, president of the powertrain division at Robert Bosch GmbH's U.S. operation, says his company has an "optimistic forecast" of a 15% diesel share by 2015. Put another way, if these forecasts are right, the number of diesel-powered sedans, SUVs and pickups could roughly triple in four years, and quintuple in nine years. By contrast, half or more of European vehicles now have diesel engines. That's driven in part by tax policies that make diesel cheaper than gasoline as well as European regulations aimed at limiting CO2 emissions while allowing higher levels of other pollutants, such as nitrous oxide, than in America. Diesel power could quickly find its way into vehicles that are large, expensive and fuel thirsty: luxury sedans, SUVs and half-ton pickups, industry executives say. These are segments where the 20%-30% fuel savings diesels can offer will get noticed most, and the added expense of diesel technology -- which ranges from $2,000 to as much as $6,000 depending on who's estimating -- is noticed least. Diesel power already dominates the heavy duty pickup market. But the more popular "half-ton" pickups like the Ford F-150 are still mainly gasoline powered. With gas prices at current levels, diesel-technology suppliers say that situation is likely to change. "It would be very unlikely not to have diesel offerings post 2010" in the half-ton pickup market, says Jeff Donnell, turbo technology vice president and general manager Americas for Honeywell, which supplies turbo chargers for diesel engines. In Europe, diesels have taken over the large luxury sedan market, dominated by DaimlerChrysler's Mercedes-Benz and Bayerische Motoren Werke AG. Now, DaimlerChrysler is preparing to expand its diesel offerings in the U.S. Mercedes has already said it plans to start offering its latest clean diesel technology, called Bluetec, in an E-Class sedan later this fall. A different diesel engine will be offered in the M-Class and R-Class SUV-wagons. Meanwhile, the Chrysler unit will announce in the "near term" plans to expand its array of diesel offerings in the Chrysler, Jeep or Dodge brands beyond the Liberty diesel, says Frank Klegon, head of Chrysler product development. Mr. Klegon won't say exactly what Chrysler plans, but he points out that the efficiency gains from diesel technology could be important to sustaining sales in the SUV segment. Chrysler has shown at U.S. auto shows a version of the diesel Grand Cherokee it sells in Europe. Volkswagen AG currently is the top seller of passenger cars with diesel engines in the U.S. As gas prices spiked in April, sales of VW's diesel powered Jettas, Golfs and Beetles soared. The diesel Jetta is rated at 36 mpg city, 41 highway compared to 22 city, 30 highway for the base five-cylinder model. More than one in five VW's sold in April in the U.S. had a diesel engine, compared to a 14% diesel share in 2005 and 11.8% in 2004. VW's diesel offerings will take a hit in 2007, because the company hasn't outfitted 2007 models with technology to meet new clean-air standards. But in 2008, VW's plan is to offer new diesels in virtually all its mainstream models that are clean enough for all 50 states, says VW of America spokesman Steve Keyes. Among the new models -- a diesel Rabbit. "People are getting the idea that diesel is a viable alternative here," Mr. Keyes says. Diesel's image is getting a boost from pop culture icons like Willie Nelson, who promotes his BioWillie brand of biodiesel fuel -- made from vegetable oil or animal fat -- as a way to cut petroleum consumption. Behind the wheel of the Chrysler 300 CRD, the first question is, "what's not to like?" The car's 3.0 liter V-6 diesel is quiet, except for a pleasant rumble that makes it sound like an old school V-8. Pickup from a stop is excellent, because big torque is this engine's specialty. On the freeway, the 300 CRD lopes along at just under 1,800 revolutions per minute. The problem is that my car probably didn't comply with U.S. clean-air rules, and the technology to make it clean enough to meet California or New York standards, which are tougher than the federal limits, is "extremely challenging," says Mr. Klegon, the Chrysler product development chief. "We know how to meet them," he says. "But at some cost." And that cost, which he puts at around $5,000 to $6,000 all totaled, is probably not fully recoverable from the customer. At Mercedes-Benz North America, Patrik Borenius, manager advanced product planning, says the auto maker has "shown what we believe is a technology that will meet 50-state requirements." But so far that technology is only in production on commercial vehicles in Europe. Mercedes has said it plans to adapt the "Adblue" technology to passenger cars. Auto makers have been reluctant to ask outright for environmental regulators to relax clean air standards. The EPA has labeled diesel soot a carcinogen. But car makers are working feverishly to persuade federal regulators that certain relatively low-cost treatment technologies under development will work. Whether the renewed emphasis on fuel conservation in Washington will make that task easier remains to be seen. A breakthrough in exhaust scrubbing that clears the way for diesels in all 50 states, plus tax breaks that offset the higher cost of diesel engines, could spark a rush to outfit gas guzzlers with higher mileage, longer range diesels. That could, in turn, put a new spin on the debate about where car makers put their technology bets hybrids, diesel or advanced gasoline technologies. "All of the (car makers) Japanese, European and American, are all very bullish on diesel," says Bosch's Mr. Moulton. "Even if they're not stating that." ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Message: http://www.houseoffusion.com/lists.cfm/link=i:5:206286 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
