Diesels under pressure amid higher gas prices

By Jerry Flint

updated 2:41 p.m. ET June 14, 2006

NEW YORK - Under the hood, Europe and America take different roads. Half of Europe’s 15 million new car sales a year are for models with diesel engines. In the U.S., manufacturers sell fewer than 50,000 diesel cars a year.

Once again, diesels have a chance — but only a chance — at gaining ground in America. Rising fuel prices work in their favor, as does the advent of cleaner diesel fuel in the U.S., which will help open the door for the importation of Europe’s high-technology diesel engines.

The problem is that while cleaner diesel fuel is coming to market here, federal emission standards are climbing, too. The Europeans say that their new technology diesels will be able to meet our tougher rules, but not for a few years.

In Europe, diesels have a double-barreled advantage. First, they get better mileage, 25 percent to 30 percent better than gasoline-powered vehicles. Measured by the U.S. Environmental Protection Agency standard, the Volkswagen diesel Jetta (stick shift) gets 36 miles per gallon in the city and 41 on the highway, versus 22/30 city/highway for the 2.5-liter five-cylinder gasoline model.

Second, European governments do not tax diesel fuel as much as gasoline. The difference in taxation may run as much as $2 per gallon. In the U.S., diesel does not have a price advantage. A colleague recently paid $2.71 per gallon for regular gasoline in Detroit, while diesel was going for $3.

DIESELS AMERICANS CAN BUY Click the links for photos, prices, more. Chevrolet Silverado / GMC Sierra Dodge Ram Ford F-Series Hummer H1 Jeep Liberty Mercedes-Benz E-Class Volkswagen Golf 1.9L TDI Volkswagen Jetta TDI Volkswagen New Beetle TDI

Diesel motors have other pros and cons. The diesel engine is stronger and heavier than a gasoline engine because it must stand much greater pressure. An automotive diesel engine often lasts for several hundred thousand miles. Then again, today’s gasoline engines are quite durable, too.

Diesels cost more to build, but European manufacturers hold down the prices of diesel cars to boost sales. A VW Jetta diesel sold in the U.S. lists for $1,315 more than the comparable gasoline model, while a Mercedes E320 CDI is $1,000 more expensive. Then there is the smell, the noise, the nitrous oxide and particulate emissions, and the slow winter warm-up of diesels, but the new technologies are supposed to have minimized these drawbacks.

General Motors, Ford Motor and Chrysler use diesels only on their biggest pickups. They do not make them for their cars or other trucks, and they are not eager to spend billions retooling engine factories. The Japanese have not embraced diesels, either, but they have made a big bet on fuel-saving hybrids.

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