Dead Diesels: Six automakers reportedly kill plans for oil burners
Diesel's near-term prospects in America took a huge hit with the revelation that nine diesel-powered 2010 models are on hold. Ford, General Motors, Chrysler, Toyota, Honda, and Nissan have put the kibosh on rolling out more oil burners due to cost and perception issues.
Toyota's obviously on a hybrid run and doesn't want to expelnd the effort or expense of investing in diesel for the American market - and having to overcome America's dirty diesel perceptions. The others, as mass market manufacturers, simply need more justification for the cost and complexity of oil burners in order to make the case for consumers to spend more.
Additionally, diesel's benefits are weighted differently according to EPA or CAFE standards. The EPA mileage numbers present diesels well, but CAFE's differing fuel mileage equation makes gas-hybrids look better than diesels, and CAFE is something all automakers are looking at. However, you'll notice that German brands aren't mentioned - their price premium and European diesel volumes make a worthwhile case for diesels, so those diesel Jetta Sportwagons won't be going away any time soon.
Gallery: 2008 VW Jetta CleanTDI
[Source: Automotive News - Sub. Req.]
Reader Comments (Page 1 of 1)
Throwback 9:42AM (7/01/2009)
I suspect this has to do with California getting their EPA waiver. If they change the rules again, the newer diesels won't be able to be sold there. If you can't sell in the largest market is it worth spending the money to develop a US diesel?
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locoyocal 9:58AM (7/01/2009)
I think it has to do with the fact 09 Jetta TDI's are selling below sticker, even before tax-rebate.
The 15k-20k hybrids coming online, leave little margins for the diesel folks. Until they realize high margin days are over.
Alex 10:26AM (7/01/2009)
What cars aren't being sold under sticker?
Who wants a used hybrid where you don't know when you're going to have to replace the battery pack? The Jetta TDI is a whole lot more fun to drive than the Honda Civic Hybrid.
jeffzekas 12:42PM (7/02/2009)
Where is the Subaru diesel?
Come on, Fuji, bring it in!
jay 10:27AM (7/01/2009)
:facepalm:
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Throwback 10:42AM (7/01/2009)
Jetta TDIs are in huge demand and are NOT selling below sticker. My wife is interested in a TDI wagon and we could not find one anywhere to drive. However, all the dealers where willing to take an order. Each delaer said the same thing, they don't last more than a few days on the lot if they are not already pre-sold. They can't get enough of them, same for the sedan.
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rob 8:46PM (7/01/2009)
Really? Follow this link....
http://www.crownvolkswagen.com/VehicleSearchResults?pageName=NewVehicleSearch&make=Volkswagen&model=Jetta+Sedan&search=new&bodyType=CAR&priceSearch=0&minPrice=19000&maxPrice=53000&=325&=900&minYear=2006&maxYear=2009&minMPG=20&maxMPG=41&fuelType=Diesel
They have 6 sedans on the lot and they had a recurring monthly special going ($1300 off but it looks like Beetles are now on special).
But I see you are looking for a wagon. Americans don't buy wagons (I heard a Big 3 marketing guy say this in a meeting one day, he also talked about lack of a market for hatchbacks too, I chortled out loud) so they probably don't make many...the law of supply and demand holds. If I recall correctly, Puebla's build rate was only going up about 1000 a month to accomodate the wagon. That doesn't leave a lot of them out there to choose from. If it was a heavy seller you'd expect them to really crank up the volume! But then again, my local Dodge dealer never had a Viper on the lot either and we know what a huge seller that one was.
John 11:30AM (7/04/2009)
Jetta TDI's are selling below sticker. I just paid $300 over dealer invoice for an '09 sedan (approx. $700 under sticker) and that was before the add'l $500 VW loyalty rebate. If the dealers are hungry enough to move the vehicle, they will negotiate with you.
Doug 1:34PM (7/01/2009)
Any word on whether Subaru still has US diesel plans?
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James 2:51PM (7/01/2009)
Here is one corporate contributor to misconceptions about diesel: http://bit.ly/uhaul
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ale 3:33PM (7/01/2009)
what a bunch of mofos.. u-haul, our buddies in the trucking/hauling industry
Kalle 3:44PM (7/01/2009)
Does volvo sell their diesel cars in US?
They been bragging alot here in Europe lately with the their C30 and their new V70.
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Rick 3:35PM (7/01/2009)
The germans will lead the way. VW, BWM and Merc brought over there diesels and so is Audi. After a few years, people will see. Turbo diesels will be popular among the young tuner crowd because they have massive torque and can be chipped to allow for increases in HP and torque while maintaining good mpg numbers. I'd love to be able to get a diesel, it's power & mpg numbers, there just aren't many options other than the affordable Jetta and the expensive BMWs, Mercs and Audis.
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Phil 4:30PM (7/01/2009)
Too bad you gas guzzling Americans aren't getting the excellent Honda diesel. It's the best choice in all the Euro Honda range: Civic, Accord and CRV.
My diesel CRV often gets 38 US mpg across a tank (about 600 miles) and life time average is over 34 mpg. There is no way the gas version would get near that, and the diesel has more grunt!
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