Truck Stop Unlimited - All About Trucks & Trailers

More Diesel Cars on the way

Representatives from a number of car companies say high diesel prices will not deter them from introducing Diesel vehicles in coming years. Diesel engines get 20% to 40% better mileage than similar-size gasoline engines and even at current prices would save the average driver hundreds of dollars in fuel costs. Currently, only Mercedes-Benz sells multiple diesel models in the USA — one sedan and three SUVs, all priced $1,000 more than similar gasoline models.

“Our diesel customer research shows that total cost of ownership, factoring purchase price, fuel economy and cost, maintenance and resale value, has greater influence than diesel fuel cost in isolation,” says Keith Price, spokesman at Volkswagen of America, which is reintroducing its diesel models next year, after a one-year hiatus to engineer its diesel engines to meet tougher U.S. pollution standards.

“There is a belief that prices will moderate,” says Larry Dominique, vice president in charge of product planning and advance strategy at Nissan North America, which is expected to introduce a V-6-diesel-power Nissan Maxima sedan in the USA in 2010, Nissan’s first diesel in the country. “Where they settle is a gamble.”

High oil prices aren’t the only reason behind the surge in diesel. Prices will likely stay high, and could go even higher, in the near future, even if oil prices fall.

U.S. supplies of distillate fuel, which includes diesel and heating oil, are down more than 5% from this time a year ago, the Energy Department said Wednesday. There have even been reports of diesel shortages for Tractors & Trucks in North Dakota during harvest time.