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          |     | October 
            26, 2005 
 Detroit News
 
 
 Forget Hybrids America; Diesels 
              will Provide Economy, Performance
 Technology allows diesels to meet toughest upcoming emissions 
              rules;
 automakers' hybrid alliances show lack of belief in gas-electric 
              future
 
 By Neil Winton
 
 GRANADA, Spain -- Peugeot of France doesn't sell its 
            cars in the U.S. but its new 407 Coupe (pictured) is powered by an 
            engine that will induce a warm glow in Americans.
 
 The engine is a diesel, and it means that Americans forced by high 
            gas prices to seek alternatives to fuel-guzzling motors can do so 
            without making sacrifices. The new car, launched here in October, 
            is powered by a 2.7 litre V-6 diesel which is quieter than a gasoline 
            engine, has so much torque that its acceleration is blistering and 
            instantaneous, does a average 27.6 miles per U.S. gallon, and most 
            important of all, the engine is made by Ford and is already used in 
            top-of-the-line Jaguars and Range Rovers. This is no smokey, under-powered, 
            bag-o-nails old diesel rattlebox. It is creamy smooth, quiet, sophisticated, 
            and environmentally friendly.
 
 To be fair, Ford makes this latest technology common rail diesel engine 
            in a joint venture with Peugeot. But the capability of the engines 
            like these in terms of economy and refined performance makes Europeans 
            wonder why Americans are making such a fuss about hybrid engines.Despite 
            all the hullabaloo about hybrids, experts predict that by 2012 Americans 
            will be buying roughly twice as many diesels as hybrids. By then, diesels 
            will also be able to match the toughest emission regulations set by California.
 
 Expensive Hybrids
 
 The runaway price of gasoline has forced Americans to look for more economical 
            fuel. Sure, the gas-electric hybrid engines powering the Toyota Prius 
            and Lexus RX400h are breathtaking technological achievements. But 
            they are heavy and expensive. And claims by Toyota that the Prius 
            will average 54.7 miles per U.S. gallon have not been borne out in 
            Europe, where you can expect around 42 mpg (35 miles per U.S. gallon). 
            Diesel-powered cars like the VW Passat can easily better that, and 
            can combine frugality with much better performance than the Prius.
 
 You would expect leaders of big European manufacturers to echo this 
            idea, and they do, describing hybrids as an expensive blind alley.
 
 "Despite the big public debate right now, it (hybrids) will just 
            be a niche technology," German luxury car maker BMW AG chief executive 
            Helmut Panke told Reuters at the Tokyo car show.
 
 "They (hybrids) do not have long-term economic prospects because they 
            are a lot more expensive to produce (than diesels) with the same results," 
            said Jean-Martin Folz, chief executive of French mass car manufacturer 
            PSA Peugeot Citroen.
 
 Experts like Peter Schmidt, editor of the pan-European bi-weekly newsletter Automotive 
            Industry Data, reckon that Toyota's hybrid venture, although an impressive 
            engineering program, was more of a public relations exercise.
 
 "Toyota lacks one fundamental element -- image - unlike BMW or Mercedes. Toyota 
            cleverly used the environmental theme to boost this," said Schmidt.
 
 Schmidt agrees that diesels are at least the match for hybrids in 
            terms of economy and performance at a cheaper price, but says the 
            crucial element in diesel success in America will be its ability to 
            match tough new laws curbing emissions of soot or particulates, and 
            dangerous nitrogen oxides (NOx).
 
 Meeting California Laws
 
 "Exhaust emissions from diesels will easily meet the next laws in 
            2007, which don't differentiate between petrol and diesel, and diesels 
            will easily meet significantly tougher laws coming up, particularly 
            in California; these can be met without sweat, no problem whatsoever," 
            said Schmidt.
 
 According to Schmidt, three hurdles need to be jumped in diesels' 
            race to be clean:
 
 "Quality of fuel - Late next year a U.S. federal law will force diesel fuel's 
            sulphur content down to 15 parts per million, comparable to European levels 
            of 10 ppm.
 
 "Particulate emissions - That nasty black soot which diesels used 
            to spew out has been eradicated by particulate filters, now commonplace 
            on European diesels.
 
 "NOx filters - Diesels emit more nitrogen oxide (NOx) than gas engines, 
            but emissions can be reduced to comparable levels by fitting a de-NOx 
            filter, an additional catalyst. Mercedes "Bluetec" technology is an 
            example of this.
 
 Automotive research firm J.D. Power and Associates agrees that diesels 
            will be clean enough to compete and its latest data predicts that 
            by 2012 almost twice as many diesels as hybrid cars and light trucks 
            will be sold in America - 4.1 percent hybrid market share versus 7.6 
            percent diesel. In 2004, hybrids powered about 0.5 percent of cars 
            and light trucks, with 3 percent diesel.
 
 "We are assuming that diesels will make the tough emission standards," 
            said J.D. Power analyst Anthony Pratt.
 
 Little Impression in Europe
 
 Pratt reckons that the U.S. accounts for about 70 percent of global 
            hybrid sales, with 23 percent in Asia and only 7 percent in Europe. 
            He doesn't expect hybrids to make much of an impression in Europe 
            because diesels, which account for a whopping 50 percent of car sales 
            currently, are so well established there.
 
 Why then did BMW recently announce that it had joined the General 
            Motors and DaimlerChrysler alliance to develop its own hybrid engine? 
            VW, and its subsidiary Audi, also said they had joined Porsche to 
            develop a hybrid.
 
 "California is a very important market for luxury brands and some 
            vehicles will have to be able to drive with zero emissions some of 
            the time. Luxury manufacturers must look as though they are environmentally 
            friendly, they need to have at least one vehicle to prove their green 
            credentials," Pratt said.
 
 Alliances also show a lack of conviction about the future of hybrids, 
            which currently add about $3,000 to the cost of each car. "These alliances 
            indicate they (manufacturers) don't really accept the technology. 
            They are spreading the risk because they don't have much confidence 
            in its (hybrids') future," said Pratt.
 
 John Lawson, European auto analyst for investment banker Citigroup, 
            reckoned that European manufacturers' belief in hybrids was not very 
            deep.
 
 "They see it as a way of selling more SUVs in the U.S. There's low expectation 
            that European consumers will pay up for the additional engineering. 
            But they can see some potential in the medium term for next generation 
            hybrids which will be able to run entirely electric in town," said 
            Lawson. It is likely that some towns in Europe and possibly the U.S. 
            will decree sometime in the future that only electric vehicles can 
            be used in rush-hour traffic.
 
 Lawson agrees that American's enthusiasm for diesels is gathering 
            pace, led by oil-burning VW Jettas, Passats, and Beetles, although 
            the gas station infrastructure needs to be improved. Diesel pumps 
            need to be moved from the truck sector to the car area.
 
 AID's Schmidt has no doubts.
 
 Diesels Superior
 
 "Diesels are all round superior to hybrids in terms of running costs, manufacturing 
            costs, flexibility in town and highway, they are winning hands down. 
            Hybrids' only plus? A marginal advantage in very heavy traffic congestion," 
            said Schmidt.
 
 So will Ford send that creamy V-6 diesel engine to America? I'm sorry 
            to report the answer is no.
 
 "Ford has no plans at the moment to use this engine in the U.S.," 
            said a spokesman.
 
 Come to think of it, that doesn't sound like a very serious "no".
 
 Neil Winton, European columnist for Autos Insider, is based in Sussex, 
            England. E-mail him at neil@jinks.demon.co.uk.
 
 ARTICLE SOURCE: Diesel Technology Forum http://www.dieselforum.org/newsarticle/article/351/56/
 
 
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