GM marketing boss Mark LaNeve apparently unaware that diesel is now cheaper than gas
Over the last several years, we've heard a lot of excuses from many auto executives as to why their companies aren't offering diesel engines in their American market cars. Yesterday, General Motors' Mark LaNeve, the company's vice president of sales and marketing, made an appearance on C-SPAN's Washington Journal. The final question of the segment came from a viewer wondering why GM has failed to offer U.S. consumers the chance to buy some of the high-mileage diesel cars it offers in Europe.It would appear that LaNeve might have done better to take a pass on the question. Instead of talking about the cost of making those diesels meet U.S. emissions regulations or the difficulty in helping Americans overcome the misconceptions about the fuel, he claimed that no one has successfully cracked the diesel passenger nut in the U.S. (which, based on VW's May sales, appears to be wrong). More startlingly, LaNeve went on to claim that diesel is $1.25 a gallon more expensive than gasoline. According to the Energy Information Agency, the national average for diesel this week is $2.35 / gallon while regular gas is $2.52. We'll repeat: gas costs $0.17 more than diesel. Admittedly, the fact that diesel is now cheaper than 87 octane gas is a recent development (a trend that nobody is sure how long it will last), but – going on national television and quoting outdated fuel prices as a reason for your bankrupt company's business decisions... well, that doesn't strike us as a terribly hot idea.
You can hear the question and response at 20:30 into the video replay over at C-SPAN.
[Source: C-SPAN]
Reader Comments (Page 1 of 2)
why not the LS2LS7? 11:49AM (6/05/2009)
VW has cracked the nut to the tune of maybe 40,000 cars a year. That's not a ton, but it is a start.
Also, I've seen VWs Diesel ads during Mythbusters. They try to take a scienc-y angle on it (using the Jr. Mythbusters in the ads), and then purposely conflate greenhouse gases and trace emissions to "show" that Diesels aren't dirty anymore. Argh, come on VW, if you want to really be the good guys, don't do it by misleading.
Reply
Matt 11:59AM (6/05/2009)
Misleading? What do you mean, they really are cleaner. See here:
"The TDI became the first 50-state clean diesel by reducing it’s CO2 emissions to 15 ppm or less with Ultra-Low Sulphur Diesel (ULSD) and some help from VW engineers. That is a huge jump from 500 ppm with Low Sulpher Diesel. Additionally, clean diesel has 10% lower CO2 emissions compared to gas.
Without the use of injecting Urea into the system, the TDI engine exhaust treatment system produces mostly Nitrogen and water. This is accomplished with improved engine technology, electronic control, a Diesel Particulate Filter (DPF) and Nitrogen Oxide (NOX) storage catalyst cleaning things up after the combustion process. This catalyst is basically a trap that temporarily holds the offensive emissions. Periodically, the engine will switch to an air-fuel mixture that will burn off the material in the traps. The result is that modern diesel engines generate about 25% less greenhouse gas emissions than equivalent gasoline vehicles."
LaughingMan 1:37PM (6/05/2009)
Even with the DPF and NOx scrubbing, the latest round of diesels from VW, Mercedes, and pretty much anybody still put out more particulates and NOx than most conventional gasoline burning cars.
Modern diesels are rated LEV II, the bare minimum to be allowed on the road these days. Conventional vehicles and hybrid vehicles reach SULEV II levels, meaning 90% fewer particulates and NOx.
VW can make the case that it produces fewer greenhouse gases, but that doesn't have anything to do with the particulate filter, for example.
jharlan 6:04PM (6/05/2009)
And it's just the start. GM isn't offering fuel efficient diesels because they are always a day late and a dollar short. Everyone except the lunatic fringe would like to see these modern highly efficient, clean diesels offered. It's as simple as this: If you don't offer modern diesel engines in your cars you will lose market share. When it comes to losing market share, GM is king.
Emissions are a solvable problem, and the Europeans are solving that problem.
The US is playing catch up again! Dam it's frustrating.
Did you ever wonder why trucks and trains use diesel? It's simple, they are in competition and they have to make a profit to survive (unless you marxists have a better answer).
Reply
TV 4:15PM (6/05/2009)
LaNeve is an a$$hole. He always makes excuses and gives bad numbers about GM's performance. He should have been fired a long time ago.
Reply
paulwesterberg 12:17PM (6/05/2009)
GM: we won't compete in the EV market, batteries don't work, tech is too expensive.
GM: we won't compete in the high mileage hybrid market, hybrid tech is too expensive, gas is too cheap.
GM: we won't compete in the high mileage diesel market, diesel is too expensive, gas is cheap.
GM: we will compete in the market by offering a wide variety of 2wd suvs that look as though they could be used off road.
Reply
Ian 2:50PM (6/05/2009)
Actually GM is at the forefront of electric cars with the EVolt
Actually GM has many more hybrids than ANY other manufacturer. Even their very large 4x4s in hybrid get 20 mpg+ averages.
paulwesterberg 3:25PM (6/05/2009)
The tesla roadster has been in production for over a year. You can lease an electric mini now. Aptera should be releasing vehicles later this year. Toyota will release a plug-in prius for fleet use testing later this year. Low speed electric vehicles like the zenn have been on the market for over a year. Most other manufacturers are scheduled to produce an EV or serial hybrid in the next 2 years.
The volt will not be available for purchase until 2011.
20mpg is not impressive.
DaveD 12:22PM (6/05/2009)
I've been an exec at big companies like IBM. I know how easy it is to be focused on your part of the world and not look at the big picture sometimes. But how can you get so out of touch with reality that you could be in the car business and not even have a clue with what is going on in the industry? He doesn't know what his competitors are doing in the diesel segment and has no idea what is going on with the diesel market and the price of fuel?
Geez, we're a bunch of interested hobbyist on here and we pay more attention than this. No wonder GM is in such trouble if their execs have totally lost touch with the market.
Reply
Yikes 2:23PM (6/05/2009)
Easy. He lives and works in an information deprived bubble know as Michigan.
Sam 12:27PM (6/05/2009)
No surprise Gm is in the boat they're in. I was under the impression things were starting to change, apparently not. You wont see me buying GM.
Reply
GenWaylaid 1:20AM (6/06/2009)
If you're a U.S. taxpayer, you'll be buying GM whether you like it or not. You can still choose not to purchase their cars, though (for now).
Sam 12:57PM (6/05/2009)
Interestingly He's still not willing to admit that E85 is not an energy solution, on top of using food crops (which he said they're trying to change) E85 increases CO2 Output by up to 35-40%.
Reply
paulwesterberg 3:29PM (6/05/2009)
E85 cars get horrible mileage. GM likes it because flex fuel vehicles offer a loophole in cafe mileage standard.
CNCMike 9:14PM (6/06/2009)
Sam,
E-85 does not use food crops for people. It uses crops for animal feed and all the grain in this country, corn, wheat ,barley, rye, etc is still used as high quality animal feed after the starch and sugars have been extracted for ethanol production.
Sam 5:13AM (6/07/2009)
Hey don't shoot the messenger I'm just repeating what he said in the video.
Steve W 12:59PM (6/05/2009)
I suppose the guys only defense is that he is only the VP of Sales and Marketing, and when did they ever need to know anything about the product they are trying to sell or market ;)
All they need do is come up with a catchy slogan, a few cute sound bites, and some pics that convey the message of the day, and they think they can sell the public anything.
Reply
paulwesterberg 3:45PM (6/05/2009)
Like a Rock! (big, heavy, boring)
Live without limits! (spending limits)
America's Best Trucks (Japan makes em better)
mike 2:10PM (6/05/2009)
Is the diesel cheaper than gas thing just a recent trend?
I could have sworn that growing up it was historically cheaper than gas.
Perhaps my memory is just not correct.
I thought the recent upside down situation of diesel to even high-test was the odd man out historically.
Not that I'd be surprised if it happened again.
But hey.... I'm just an inch away from putting my hand up to vote to nationalize the big gas companies anyway.
- mike
Reply
Tommy 2:14PM (6/05/2009)
I'd post a snappy comeback, but I have to go fill my wife's Jetta TDI with B20... she gets better than 45mpg around town and has seen better than 60 on long trips.
Sorry GM
Reply