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Home | Green Cars News | Clean Diesel | VW Expects 30 Percent Diesel Share in U.S., Diesel Share in Europe Has Peaked

VW Expects 30 Percent Diesel Share in U.S., Diesel Share in Europe Has Peaked

20 May, 2008 04:09:00

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At a recent a press conference at Automotive News Europe Congress in Turin, Italy, Volkswagen director of powertrain research Wolfgang Steiger stated that roughly 30 percent of VW's total U.S. sales will likely be derived from its diesel models by 2018.

Rising fuel prices are making diesels more attractive to U.S. car buyers, Steiger told the reporters.

"We used to be the leader of diesel sales in the U.S.," Steiger said.

Before VW stopped selling diesel cars in the U.S. last year to comply with stricter US emission standards for diesels, 15 percent of the carmaker's U.S. sales were diesels.

VW will offer its 2.0-liter TDI four-cylinder clean diesel engine in the newly redesigned Jetta, Passat and Tiguan models. The engine produces 140 horsepower and 236 lb-ft of torque. Sister company Audi is also planning to debut its own clean diesel vehicles using its 3.0-liter V-6 TDI to power a version of the Q7 SUV and A4.

U.S. consumers have not bought diesel cars in large numbers in the past because many consider diesels to be dirty and underpowered.

Today the average price for a gallon of gasoline is $3.79, while a gallon of diesel runs $4.55, but diesels has about 30% better fuel economy.

Last year, diesels accounted for about 3 percent of US vehicle sales. In Europe, 53.3% of new-car buyers chose diesels last year, according to ACEA, the European automakers' association.

Passat will be one of the models that VW will offer to U.S. with 2.0 TDi clean diesel engine

Meanwhile, a new study by the Centre Automotive Research (CAR) at the college of Gelsenkirchen, Germany, found that the diesel share in Europe market has peaked and that it will start falling from around 53.3% today to 30% by 2020.

The study, reported by Automobilwoche, said the main reason for the end of the diesel boom is the improved efficiency of petrol cars, downsizing, second generation technology and double turbocharging.

Another reason is falling values of used diesel cars. CAR attributes this partly to the fact that private used car buyers generally drive fewer kilometers than new car owners and this, combined with the reduced price advantage, means that diesel no longer adds up as an alternative.

From 2010 all diesel cars will be required to have NOx filters, which will add further cost. These filters will require servicing, too, leading to even more cost for owners.

For 2015 CAR is forecasting a 38% share in diesel, falling to 30% by 2020.

[source: Auto News, Just-Auto / Subscriptions required]

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