http://www.planetark.org/dailynewsstory.cfm/newsid/19322/story.htm

AUTOSHOW -
GM considering diesels for N. American SUVs

USA: January 8, 2003

DETROIT - General Motors Corp. (GM.N) is considering offering diesel 
engines on its sport utility vehicles sold in North America to help 
boost fuel economy, a top company official said.

GM is expanding capacity for its diesel engines on its full-size 
pickup trucks sold in North America, and could also offer them on 
their large sport utility vehicles to consumers wishing to save money 
on fuel, said Gary Cowger, head of GM's North American operations.

But U.S. clean air laws could prevent their widespread use in 
passenger cars unless the laws are rewritten, he said.

"Diesels in cars here, because of the way pollution and the ways the 
laws are written... diesels are not appropriate unless we get some 
rule changes. They are in trucks," Cowger said.

More fuel efficient diesel engines have taken off in Europe, and now 
represent around 40 percent of all new vehicle sales. Diesels achieve 
higher fuel economy but also emit more pollutants.

But many in the auto industry are skeptical that Americans, who 
remember the sputtering and smelly diesel engines of the past, will 
want cars with diesel engines. Relatively cheap gasoline in the 
United States offsets the added costs of diesel engines, officials 
have said.

However, John Smith, GM's head of vehicle sales, service and 
marketing in North America, said that he thinks that the regulatory 
opposition to diesel engines is changing.

"I sense that the door is swinging open on the regulatory front to 
more diesels," he told Reuters in an interview. "I've always thought 
that there was a big opportunity in this market for diesels. Today's 
diesels are very elegant, high performance machines."

An alternative to diesels could be hybrid gasoline-electric vehicles, 
which save fuel by using batteries. GM announced plans this week to 
offer hybrid gas-electric motors as an option on at least seven 
vehicles by 2007, which combined with new technologies, could boost 
fuel economy from 15 to 50 percent.

Story by Michael Ellis

REUTERS NEWS SERVICE


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