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.

Related Links

Hybrid Suvs Roll Into Showroom

For the past few years, people who have wanted to buy a more energy-efficient car have had to think small. That’s about to change. The floor of this year’s North American International Auto Show in Detroit offered a look at several new energy-efficient models due out later this year or within the next few years. The auto industry hasn’t sold very many of the cars carrying one type of new technology so far, but officials hope more choices will boost sales. The Great Lakes Radio Consortium’s Michael Leland has more:

Transcript

For the past few years, people who have wanted to buy a more energy-efficient car have had to
think small. That’s about to change. The floor of this year’s North American International Auto
Show in Detroit offered a look at several new energy-efficient models due out later this year or
within the next few years. The auto industry hasn’t sold very many of the cars carrying one type
of new technology so far, but officials hope more choices will boost sales. The Great Lakes
Radio Consortium’s Michael Leland has more:


At the Toyota display at this year’s auto show, a small crowd formed around the newest version
of the gasoline-electric Prius. Toyota’s sold the car since 1997, and has made it bigger for this
year. What makes this car different is it’s powered by a gasoline-electric hybrid engine. A few
months ago, Denny Jones of Toledo, Ohio ordered a new Prius. He’s still waiting for delivery, so
he drove to Detroit to sit in one at the auto show.


“First of all, I’ve had other Toyotas, so I like the quality. They’ve made improvements on this
one. There’s hatchback. On the first style you couldn’t have a hatchback. They get better
mileage than the first one. And, overall it is a larger car.”


Gasoline-electric hybrid engines have lower emissions and get better mileage than cars with
standard gasoline engines. Toyota says the Prius gets about 50-miles per gallon. But the only
hybrids on the market so far have been small cars like the Prius and the Honda Civic.


Later this year and next, larger hybrids will roll into showrooms. Honda will offer a hybrid
Accord. And Ford will sell a hybrid version of its Escape SUV. Jerry Bissi braved an afternoon
snowstorm to come to the auto show, and was checking one out.


“I prefer to have an SUV-type vehicle for driving back and forth, all-wheel drive, the weather
conditions we have today outside. So I prefer something like that rather than the car.”


There will be several hybrid SUV’s available by next year. Toyota will sell a hybrid Highlander,
and its luxury division Lexus will offer its own model.


“Ladies and gentlemen, it is my pleasure to introduce the world’s first luxury hybrid vehicle, the
Lexus RX-400-H.”


Denny Clements is a vice-president at Lexus. He says there seems to be a pent-up demand for
larger hybrids.


“Our dealers have taken a huge amount of orders just off word of mouth about Prius, I think. I
think what we have when you talk to our customers is there is a lot of very affluent people who
would like to make a statement about Middle East oil, would like to make a statement about who
they are, but they don’t want to make the sacrifices in terms of luxury amenities.”


Toyota says Americans bought about 21-thousand hybrid Priuses last year. But that’s a drop in
the bucket compared to the almost 16-million vehicles sold in the U.S. last year.


“If you added up all the hybrids that have ever been made since the beginning of time, they don’t
equal the production of one high-volume auto plant in one year.”


That’s David Cole. He heads the Center for Automotive Research. He says some people have
shied away from hybrids because they’ve only been available as small cars, and others have been
wary of the new technology. But mostly, Cole says a lot of people aren’t willing to pay more for
a hybrid.


“Where it is going to be in the future is dependant on one thing in my judgment and that is
economics. Can it be done at a cost that consumers will pay for?”


So far, Toyota, Lexus and Ford aren’t saying what their new hybrids will cost. Right now a new
hybrid Honda Civic costs about two-thousand dollars more than the most expensive gasoline
model. The federal government offers a tax deduction to hybrid-buyers to help close that gap, but
it is being phased out during the next few years. Some automakers and environmental groups say
it’s not enough anyway. They want Congress to pass a federal tax credit for people who buy
hybrids.


David Friedman is with the Union of Concerned Scientists. He says the automakers’ decision to
offer hybrid engines in more models is an opportunity for the country to become less dependant
on imported oil – if enough people can be persuaded to buy the vehicles.


“If automakers put some of their 10-to-15 billion dollars of advertising muscle behind this, and if
the government is willing to get these tax credits out there, I think we can see hybrids grow into a
significant portion of the market.”


Back at the auto show, Jerry Bissi says he’d consider buying a hybrid SUV. He says he thinks
others will too, if the price is right and they prove to be reliable.


“I think there are a lot of people sitting on the fence. They’re going to watch the first one, see
how it does. If it does prove to be good, they’ll jump on the bandwagon and be late joiners.”


Buyers might need some convincing, though. On this afternoon at the auto show, Ford’s hybrid
version of the Escape SUV drew only a few visitors compared to the crowds surrounding the
standard gasoline-engine Escape and the company’s larger Explorer SUV.


For the Great Lakes Radio Consortium, I’m Michael Leland.

Related Links