Revving Up Sales of Cleaner Diesel Cars

When you think of diesel engines, you might think of big, noisy, stinky trucks. But that’s changing. And a domestic automaker has plans to bring a cleaner, higher performing diesel engine to passenger cars. The company insists: it’s not your father’s diesel. The GLRC’s Julie Halpert has the story:

Transcript

When you think diesel engines, you might think of big, noisy, stinky
trucks, but that’s changing and a domestic automaker has plans to bring a
cleaner, higher performing diesel engine to passenger cars. The
company insists: it’s not your father’s diesel. The GLRC’s Julie Halpert
has the story:


In Europe… people have been hearing this catchy little tune on a
television commercial…


(Sound of commercial)


If you hate something, improve it. That’s the message of this Honda UK
commercial that highlights the historically loud, smelly diesel engines.
It’s intended to promote Honda’s new, cleaner diesel, something it’s
launching in Europe.


Diesels have always been more popular in Europe than the U.S. That’s
because there diesel fuel is roughly 20 to 30 percent cheaper than
gasoline there, and diesels get great fuel economy… 30 percent better
than in gasoline engines.


Here in the U.S., diesels haven’t sold well. In the 1970s, when diesel
fuel was cheaper than gas, diesels gained in popularity briefly, but people
didn’t like the stench of the smoky fumes and the clunky sounds of diesel
engines. Those lingering attitudes have scared Honda off from bringing
its new diesels here.


But Daimler/Chrysler is trying to change all that. The company is
drawing on its European expertise to bring advanced technology diesels
to more U.S. passenger cars, and now, they think Americans will buy
them.


Jim Widenbak is a manager of small diesel systems for Daimler/Chrysler.


“We think that there’s a niche for diesels in the North American market,
and We’re not sure exactly how big, but I would characterize us as kind
of bullish on diesels. We really think there’s a place for them and
that customers will ultimately be very happy with diesel products.”


Daimler/Chrysler currently offers a diesel engine on its newer models of
the Jeep Liberty and the Mercedes E-320. Sales of these vehicles were
more than double what the company expected – 10,000 for the diesel
Jeep Liberty and 5,000 for the E-320.


Widenback says that electronic controls have improved over the past 30
years, making diesels better performing, more fuel efficient and cleaner
burning.


The company is in negotiations with the Environmental Protection
Agency to use a new technology, currently in use in Europe, that cuts
pollution further – just in time for tough new federal emission controls
that take effect by 2008. The process uses a material called urea that’s
injected into the exhaust before the exhaust hits the pollution control
device. This ultimately removes troublesome emissions of nitrogen
oxides.


There is one problem with the pollution control system, though.
Anthony Pratt directs power train forecasting for J.D. Power Automotive
Systems. He says the car periodically will run out of its supply of urea.


“So, in other words, you’re not getting the injection of urea in the
exhaust, the vehicles will continue to perform normally as if the urea
tanks were full but they will not meet the more strict emission
standards.”


If the company finds a way to ensure the tanks stay full, Pratt thinks it
will work. Pratt projects diesel engine sales will grow from 3 percent of
the market in 2005 to seven and a half percent in 2012, overtaking sales
of hybrid vehicles, which are only projected to be 4% of the market.


“I think the vehicle manufacturers will be successful in ultimately
educating the consumer in that the new diesel technology is not the dirty,
clanky, loud and sluggish technology they may be familiar with from the
late 70s and early 80s.”


(Sound of car dealership)


That message – that diesels are worth buying – is falling on deaf ears for
the customers of Schultz Motors. Tyler Shultz, the general manager, doesn’t
think it will fly, based on what he’s seen.


“As diesel prices went up in the last six months to a year, we virtually
have lost interest. Again, it’s not that the consumer doesn’t want it, but
when they see fuel prices go above gasoline prices, it was almost like
somebody flipped a switch.”


Shultz says it’s too expensive to buy and maintain a diesel and customers
won’t recoup the cost savings from better fuel economy unless they own
their car for several years. He, and some other dealers in the area don’t
think diesels will ever become popular.


Daimler/Chrysler’s Widenbak disagrees. He expects those fuel prices to come
down, and as they do, he says people will start buying diesel vehicles.


“We’re confident that our vehicles, diesel vehicles in general and our vehicles
specifically, can appeal to people.”


Daimler/Chrysler is so confident, it expects to roll out diesel engines in
more of its passenger cars over the next few years.


For the GLRC, I’m Julie Halpert.

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New Tax Credits for Hybrid Owners

People who buy a hybrid car or truck this year could get a bigger tax credit. The IRS has issued new tax credit guidelines for the purchase of hybrids. The Great Lakes Radio Consortium’s Celeste Headlee reports:

Transcript

People who buy a hybrid car or truck this year could get a bigger tax credit. The IRS has issued
new tax credit guidelines for the purchase of hybrids. The Great Lakes Radio Consortium’s
Celeste Headlee reports:


Beginning this month, hybrid owners will be eligible for a tax credit of up to 3,400 dollars. That
money will be subtracted directly from what the taxpayer owes the IRS. Under previous tax law,
hybrid owners could only claim a 2,000 dollar tax deduction.


Don McKenzie is a Vehicles Engineer with the Union of Concerned Scientists. He says the new
law is a step forward because it’s performance based… vehicles with better fuel economy are
eligible for a higher tax credit.


But he says the credit is phased out after a company builds about 60,000 eligible vehicles… and
there’s another important component missing as well.


“It doesn’t require an increase in overall fleet fuel economy and it is possible that some
automakers could use increased sales of hybrid vehicles to offset increased sales of gas guzzlers.”


Automakers are responsible for getting their vehicles certified as eligible vehicles. They hope to
have vehicles certified beginning this summer.


For the GLRC, I’m Celeste Headlee.

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Poll: Americans Want to Reduce Dependence on Foreign Oil

As President Bush prods Congress to pass his Energy Bill, a new poll suggests nine out of ten Americans want to reduce the nation’s dependence on foreign oil. The Great Lakes Radio Consortium’s Sarah Hulett reports:

Transcript

As President Bush prods Congress to pass his Energy Bill, a new poll
suggests nine out of ten Americans want to reduce the nation’s dependence on
foreign oil. The Great Lakes Radio Consortium’s Sarah Hulett reports:


The Yale University survey suggests that anxieties in Washington over America’s reliance on foreign oil match people’s concerns at the dining room table and around the water cooler.


Dependence on imported oil was ranked highest on people’s list of concerns – above jobs and the economy, high gasoline prices, and pollution.


Dan Esty is the director of the Yale Center for Environmental Law and Policy. He says the survey also suggests that Americans don’t want to develop more domestic fossil fuels.


“They don’t want to drill in Alaska National Wildlife Refuge. They don’t want to have more coal-based power, even though that might come from domestic sources. They really want to see a big new push for some alternative energies, and for some new technologies.”


Nine out of ten people surveyed also cited higher fuel economy standards as a good way to reduce foreign oil dependence. But lawmakers have so far rejected efforts to impose new efficiency mandates.


For the GLRC, I’m Sarah Hulett.

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Automakers Scoff at “Suv Tv”

An environmental group has designed a safer, more fuel-efficient Sport Utility Vehicle. Now, it’s trying to get you to write the government to get the big automakers to make SUVs a lot like the one it designed. The Great Lakes Radio Consortium’s Lester Graham reports:

Transcript

An environmental group has designed a safer, more fuel efficient Sport Utility Vehicle. Now, it’s
trying to get you to write the government to get the big automakers to make SUVs a lot like the
one it designed. The Great Lakes Radio Consortium’s Lester Graham reports:


The environmental group, the Union of Concerned Scientists started with a Ford Explorer and
then looked at ways to improve the SUV to solve what the group saw as some design
problems.


“The Union of Concerned Scientists has developed a blueprint for a safer and more fuel efficient
SUV.”


On its website, the group lists about a dozen improvements to the SUV ranging from better,
stronger materials to keep passengers safer during a rollover to engine and transmission designs
that would mean much better gas mileage.


David Friedman is the Research Director for the Clean Vehicle Program at the Union of
Concerned Scientists. He says consumers should have those choices.


“When you step into a showroom, sure, you can choose the cup holders, you can choose the color
of your SUV. But, you can’t choose the fuel economy. You’re stuck between 16, 17, 18 miles
per gallon. What we’re talking about is taking technologies that the automakers already have to
save thousands of lives every year and to save on the order of $2,500 on fuel.”


Friedman says all the options the Union of Concerned Scientists have suggested are off-the-shelf
technology.


The auto industry says those options are available in SUVs. But nobody’s asking for them. Eron
Shosteck is a spokesperson for the Alliance of Automobile Manufacturers, a trade association.
Shosteck says most people want more cargo space, more power, and more towing capacity from
their SUVs. They’re not clamoring for the added safety and efficiency features that the
environmentalists are pushing.


“For consumers who wish to have better fuel economy than other attributes, automakers offer
more than 30 different models of vehicles that get 30 miles per gallon or better. They are very
poor sellers.”


That statement sounds a lot like a video cartoon satire of the auto industry on the Union of
Concerned Scientists website, SUV-TV.org.


“Look, if you want fuel economy, go drive a compact.”


The auto industry is portrayed as a cigar puffing fat cat who offers lots of excuses for why SUVs
have to be made the way they’re made. The cartoon declares satirically it’s all because “Industry
Knows Best.”


The auto industry actually says the chief reason SUVs are made the way they’re made is: that’s
what consumers want.


The Union of Concerned Scientists’ David Friedman says he doesn’t see it that way.


“They’re saying they’re responding to the marketplace, but when consumers say they want an
SUV that gets higher fuel economy, they literally do tell them to go drive a compact.”


So, the Union of Concerned Scientists is launching a campaign called the SUV-TV Challenge.
It’s trying to get 50-thousand people to visit the website and then write to the government and
automakers, demanding better fuel efficiency standards for SUVs and other vehicles.


“Well, what we’re trying to do is show consumers they have a choice and have consumers contact
the U.S. government, who’s responsible for taking care of consumers, and let them know they
want better SUVs. They want a real choice when they step into the showroom.”


The auto industry says those choices are there if you order them. But most people buy vehicles
on the showroom floor. The Auto Alliance’s Eron Shosteck says the demand for the SUVs there
is strong.


“We respond to consumer demand, not to publicity stunts by special interest groups.”


The environmentalists hope demands for safety and fuel efficiency are felt through the SUV-TV
challenge. But the real demand for fuel efficiency is more likely to come from rising prices at the
pump, which are expected to reach record highs this summer.


For the Great Lakes Radio Consortium, this is Lester Graham.

Related Links

Enviros List Greenest and Meanest Cars

A Canadian environmental group has released a list of the greenest and meanest vehicles on the road. The Great Lakes Radio Consortium’s Karen Kelly reports:

Transcript

A Canadian environmental group has released a list of the greenest and meanest vehicles on the
road. The Great lakes Radio Consortium’s Karen Kelly reports:


It’s no surprise that hybrid vehicles such as the Toyota Prius, the Honda Insight and the Honda
Civic hybrid topped the list of environmentally-friendly cars.


As for gas guzzlers, Environmental Defence Canada rated the Volkswagen Touareg, the
LandRover Range Rover and the Lexus LX 470 as the worst.


Jennifer Foulds is with Environmental Defence Canada.


She says traditionally, the green list has been dominated by Japanese automakers.


“The big three hasn’t really cracked the green list yet. They tend to have vehicles that aren’t quite
as fuel efficient, don’t have the same level of tailpipe emissions as some of the foreign made
vehicles.”


This year, the Ford Focus did qualify for the green list.


Foulds says it may soon be joined by other American cars as Ford, GM, and Daimler Chrysler
prepare to release their own hybrid vehicles.


For the Great Lakes Radio Consortium, I’m Karen Kelly.

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Senate Debates Fuel Efficiency

Few U.S. Senators in the region supported stricter fuel standards in the most recent vote on the issue on Capitol Hill. The Great Lakes Radio Consortium’s Sarah Hulett has more:

Transcript

Few U.S. Senators from the region wanted stricter fuel standards in the most recent vote on the issue on Capitol Hill. The Great Lakes Radio Consortium’s Sarah Hulett reports:


The legislation called on domestic car makers to produce fleets of vehicles that get
better gas mileage. The standard called for an average fuel economy of 40 miles per gallon by 2015. The current standard is 27-and-a-half miles per gallon. Three of the region’s senators opposed the measure for every one senator who supported it.


Anne Woiwode is with the Sierra Club. She says foreign automakers are producing
more fuel-efficient cars. Woiwode says that competition will hopefully spur lawmakers from
car-producing states to push for stricter fuel standards in the future.


“It’s going to be harder for the states of Michigan, Wisconsin, Ohio, Illinois – the whole Great
Lakes region – to compete.”


Critics of higher fuel economy standards say they would force domestic automakers to
produce smaller, less safe cars. For the Great Lakes Radio Consortium, I’m Sarah Hulett.

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Drivers Worry About Fuel Consumption

A survey of automobile drivers found many people complaining about higher than expected fuel consumption. The Great Lakes Radio Consortium’s Lester Graham reports:

Transcript

A survey of automobile drivers found many people complaining about higher than expected fuel
consumption. The Great Lakes Radio Consortium’s Lester Graham reports:


The JD Power and Associates 2003 Initial Quality Study found that one of the top complaints of
drivers was fuel consumption. Perhaps not surprisingly, it was the number one complaint about
the massive military-modeled Hummer H2. But it was also a complaint about the hybrid models
such as the Toyota Prius, one of the most fuel efficient cars on the road. A JD Power and
Associates spokesperson didn’t want to be recorded, but in a statement indicated that drivers were
probably more aware of fuel consumption because of higher gasoline prices this past year. He
suggested the complaints about the hybrid and other compact cars likely came because drivers
found the cars didn’t always get the kind of mileage suggested by the Environmental Protection
Agency window sticker. That’s been the case in past years, but this year more drivers noticed the
difference.


For the Great Lakes Radio Consortium, this is Lester Graham.

Bush Administration to Redefine Auto Standards?

The government is considering redefining what is a truck and what is a car. The difference will affect the federal fuel economy standards. The Great Lakes Radio Consortium’s Lester Graham reports:

Transcript

The government is considering redefining what is a truck and what is a car. The difference will
affect the federal fuel economy standards. The Great Lakes Radio Consortium’s Lester Graham
reports:


Fuel economy standards for light trucks are less restrictive than they are for cars. The auto
industry takes advantage of the rules regarding the definitions to make vehicles you might think
of as a car fall under the less restrictive light truck fuel economy standards. For example, the
popular Chrysler P-T Cruiser qualifies as a light truck. The New York Times published a report
indicating the Bush administration is looking to further change the definitions. Environmentalists
are concerned.


Daniel Becker is with the Sierra Club.


“You can redesign to either save more gas or guzzle more gas. Our fear is that the Bush
administration, responding to their friends in the auto industry and the oil industry, will instead
decide that we need to guzzle more gas.”


The Bush administration is reported to be considering the changes to achieve greater fuel
economy, but some environmental groups remain skeptical.


For the Great Lakes Radio Consortium, this is Lester Graham.

Proposed Fuel Efficiency Standard Criticized

Environmental groups have been critical of the White House for not going far enough in requiring the auto industry to make light duty trucks, such as SUV ’s, more fuel-efficient. The Great Lakes Radio Consortium’s Lester Graham has this report:

Transcript

Environmental groups have been critical of the White House for not going far enough in
requiring the auto industry to make light duty trucks, such as SUV’s, more fuel-efficient.
The Great Lakes Radio Consortium’s Lester Graham reports:


Many of the big environmental groups said the Bush administration’s plans to increase
the fuel economy standards for SUV’s by a mile-and-a-half a gallon wasn’t enough. The
environmentalists say the proposed standards will do almost nothing to make the nation
less dependent on foreign oil. Chris Struve is a market analyst for Fitch Ratings. He says
if the environmental groups want real results, they should turn their attention from trying
to regulate the auto industry’s behavior and instead try to change public opinion:


“It all comes down to consumer preference and frankly the U.S. consumer has
not demonstrated that they have a concern for fuel economy and until the
environmentalists can demonstrate otherwise, I think, you know, you’ve got to be very
careful what you do.”


Struve says few environmental groups are willing to push the hot button issues that would
change consumers’ behavior, such as higher gasoline taxes to make drivers think before
they buy a gas-guzzling vehicle.


For the Great Lakes Radio Consortium, this is Lester Graham.

Demand Is High for Hybrids

For the first time, demand is high for an environmentally friendly
car. Honda’s new Insight now has a two-month waiting list. The Great
Lakes Radio Consortium’s Julie Halpert has the story: