New Turbo Gas Engines, Diesel Engine/Fuel Prices Threaten Diesel Prospects in the US
04-02-2013 | 06:57 PM
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New Turbo Gas Engines, Diesel Engine/Fuel Prices Threaten Diesel Prospects in the US Diesel benefits shrink as gas engines get more fuel-efficient, torquier
By Karl Henkel
The Detroit News
General Motors and Chrysler are adding diesels to their U.S. car and truck lineups, but traditional gasoline engines and hybrids are becoming so fuel-efficient that American consumers have fewer financial and performance reasons to buy them.
Diesel-powered cars are losing ground to advanced gasoline engines: They cost thousands of dollars more than comparable models with gas engines. They no longer have nearly the advantage in pulling power, at least in passenger cars. They don't deliver significantly better fuel economy. And diesel fuel costs about 36 cents a gallon more than regular unleaded.
Improvements in gasoline engines have closed the gaps in fuel efficiency and pulling power, said Allen Schaeffer, executive director of the nonprofit Diesel Technology Forum. "There is quite a competitive landscape today, compared to what it was five or 10 years ago," he said.
While GM and Chrysler have decided to join European brands in offering more diesels, Ford Motor Co., Toyota and Hyundai have decided to stick with increasingly fuel-efficient gas engines and hybrids. All automakers are under pressure to squeeze more miles per gallon to meet federal fuel efficiency standards.
"There's no doubt the advancement in gasoline technology has improved and that has, in some respect, slowed down diesel options from OEMs," Tony Schultz, vice president of the Americas for technology supplier Honeywell International Inc.'s Turbo Technologies, said in a telephone interview.
And on a cost-basis, hybrids trump diesels, too. John Krafcik, president and CEO of Hyundai, said the added cost to the consumer of hybridization is about $1,500, compared to $5,000 for diesel.
"When we ask if consumers are willing to pay that, they ask, 'What are you smoking?'" he said. "We all have great diesel engines available to us, but gasoline engines are growing."
Last year alone, U.S. sales of diesel vehicles rose 25 percent. But as a percentage of total industry sales, diesels made up only 2.7 percent of new-car purchases, said Edmunds.com. Hybrid vehicles — at about 3 percent of industry sales — outsold diesels in 2012.
Some analysts project growth will be much slower and limited to self-proclaimed diesel fans. And some automakers, like General Motors Co., have decided to take a methodical approach to diesel car introductions in the U.S. market.
Diesel's advantages ebb
Diesels for decades have been known for having better torque, or pulling power, than gas engines. But that advantage is dwindling.
Ford Motor Co.'s new 1-liter EcoBoost engine, a marriage of turbocharging, direct-injection and twin independent variable-camshaft timing, delivers 147 foot-pounds of torque. On a per-liter basis, the engine beats any other mass-produced car available in the U.S., and at a premium of about $1,000, compared to several thousand dollars for a diesel engine with comparable attributes.
Other gas engines will see torque improvements in coming years: GM's new 3.6-liter twin-turbo V-6 will have its torque boosted from 353 foot-pounds to 430 in the new Cadillac CTS sedan that's expected to hit showrooms later this year. And GM's turbocharged 1.4-liter is significantly more efficient than a comparable 2.2-liter from four years ago.
Diesels have also had an advantage in fuel efficiency, but that, too — at least by Environmental Protection Agency standards — is being challenged by gas engines.
Take for instance the new Chevrolet Cruze turbo diesel. GM says the car will get 42 highway miles per gallon — exactly the same fuel efficiency of the gasoline-powered Chevrolet Cruze Eco, which costs about $4,000 less than the diesel.
The diesel will likely get better real-world fuel efficiency, as most diesels do, but the upfront expense will extend greatly the time it takes to recover the cost. Depending on fuel costs, some consumers may never recover the cost.
Honeywell's Schultz admits that diesels, at least initially, are not the best value proposition.
"The math is not a great payback," he said. "But when you take into account the residual, there is some added value there."
Data from Kelley Blue Book show the residual value of diesel vehicles is about 4.6 percentage points higher than gas cars — partly because of higher base prices on diesels — and in all instances have higher resale values.
"In spite of the resale value and fuel economy advantages, consumers in the U.S. have been slow to accept this different form of powertrain and as a result, there are not a lot of diesel vehicles to choose from," said Eric Ibarra, KBB's director of residual values.
'Waning' in Europe
The Diesel Technology Forum says 23 diesel cars, SUVs and pickups are offered for sale in the U.S. It projects that number will grow to 54 by 2017.
Automotive forecaster ALG expects diesels to account for 5 percent of new-vehicle sales within three years, and auto supplier Robert Bosch predicts diesels will comprise 10 percent of the U.S. market by 2020.
Ford and GM sell plenty of diesel-powered cars in Europe. Diesels make up half of all new-car sales there. But even in Europe, their popularity there is "waning," Krafcik said. If U.S. market demand for diesels increases, Ford and GM could quickly make production adjustments to boost output.
Mark Fields, Ford's chief operating officer, touted Ford's manufacturing flexibility during a recent speech at the University of Michigan's Ross School of Business.
"If we see diesels start to take off here in the U.S., we can react very quickly," he said.
Some have said that by 2018, emissions standards in Europe and the United States will become close enough to allow for more economical diesel production.
But Jim Hall, analyst at 2953 Analytics, says even that won't significantly close the cost gap between diesel and gas.
"A diesel engine will always be more expensive than a gas engine built in similar quantities," Hall said in a telephone interview. "Higher volume doesn't make it less expensive to build than a gas engine."
http://www.detroitnews.com/article/20130401/AUTO01/304010352/1148/rss25
By Karl Henkel
The Detroit News
General Motors and Chrysler are adding diesels to their U.S. car and truck lineups, but traditional gasoline engines and hybrids are becoming so fuel-efficient that American consumers have fewer financial and performance reasons to buy them.
Diesel-powered cars are losing ground to advanced gasoline engines: They cost thousands of dollars more than comparable models with gas engines. They no longer have nearly the advantage in pulling power, at least in passenger cars. They don't deliver significantly better fuel economy. And diesel fuel costs about 36 cents a gallon more than regular unleaded.
Improvements in gasoline engines have closed the gaps in fuel efficiency and pulling power, said Allen Schaeffer, executive director of the nonprofit Diesel Technology Forum. "There is quite a competitive landscape today, compared to what it was five or 10 years ago," he said.
While GM and Chrysler have decided to join European brands in offering more diesels, Ford Motor Co., Toyota and Hyundai have decided to stick with increasingly fuel-efficient gas engines and hybrids. All automakers are under pressure to squeeze more miles per gallon to meet federal fuel efficiency standards.
"There's no doubt the advancement in gasoline technology has improved and that has, in some respect, slowed down diesel options from OEMs," Tony Schultz, vice president of the Americas for technology supplier Honeywell International Inc.'s Turbo Technologies, said in a telephone interview.
And on a cost-basis, hybrids trump diesels, too. John Krafcik, president and CEO of Hyundai, said the added cost to the consumer of hybridization is about $1,500, compared to $5,000 for diesel.
"When we ask if consumers are willing to pay that, they ask, 'What are you smoking?'" he said. "We all have great diesel engines available to us, but gasoline engines are growing."
Last year alone, U.S. sales of diesel vehicles rose 25 percent. But as a percentage of total industry sales, diesels made up only 2.7 percent of new-car purchases, said Edmunds.com. Hybrid vehicles — at about 3 percent of industry sales — outsold diesels in 2012.
Some analysts project growth will be much slower and limited to self-proclaimed diesel fans. And some automakers, like General Motors Co., have decided to take a methodical approach to diesel car introductions in the U.S. market.
Diesel's advantages ebb
Diesels for decades have been known for having better torque, or pulling power, than gas engines. But that advantage is dwindling.
Ford Motor Co.'s new 1-liter EcoBoost engine, a marriage of turbocharging, direct-injection and twin independent variable-camshaft timing, delivers 147 foot-pounds of torque. On a per-liter basis, the engine beats any other mass-produced car available in the U.S., and at a premium of about $1,000, compared to several thousand dollars for a diesel engine with comparable attributes.
Other gas engines will see torque improvements in coming years: GM's new 3.6-liter twin-turbo V-6 will have its torque boosted from 353 foot-pounds to 430 in the new Cadillac CTS sedan that's expected to hit showrooms later this year. And GM's turbocharged 1.4-liter is significantly more efficient than a comparable 2.2-liter from four years ago.
Diesels have also had an advantage in fuel efficiency, but that, too — at least by Environmental Protection Agency standards — is being challenged by gas engines.
Take for instance the new Chevrolet Cruze turbo diesel. GM says the car will get 42 highway miles per gallon — exactly the same fuel efficiency of the gasoline-powered Chevrolet Cruze Eco, which costs about $4,000 less than the diesel.
The diesel will likely get better real-world fuel efficiency, as most diesels do, but the upfront expense will extend greatly the time it takes to recover the cost. Depending on fuel costs, some consumers may never recover the cost.
Honeywell's Schultz admits that diesels, at least initially, are not the best value proposition.
"The math is not a great payback," he said. "But when you take into account the residual, there is some added value there."
Data from Kelley Blue Book show the residual value of diesel vehicles is about 4.6 percentage points higher than gas cars — partly because of higher base prices on diesels — and in all instances have higher resale values.
"In spite of the resale value and fuel economy advantages, consumers in the U.S. have been slow to accept this different form of powertrain and as a result, there are not a lot of diesel vehicles to choose from," said Eric Ibarra, KBB's director of residual values.
'Waning' in Europe
The Diesel Technology Forum says 23 diesel cars, SUVs and pickups are offered for sale in the U.S. It projects that number will grow to 54 by 2017.
Automotive forecaster ALG expects diesels to account for 5 percent of new-vehicle sales within three years, and auto supplier Robert Bosch predicts diesels will comprise 10 percent of the U.S. market by 2020.
Ford and GM sell plenty of diesel-powered cars in Europe. Diesels make up half of all new-car sales there. But even in Europe, their popularity there is "waning," Krafcik said. If U.S. market demand for diesels increases, Ford and GM could quickly make production adjustments to boost output.
Mark Fields, Ford's chief operating officer, touted Ford's manufacturing flexibility during a recent speech at the University of Michigan's Ross School of Business.
"If we see diesels start to take off here in the U.S., we can react very quickly," he said.
Some have said that by 2018, emissions standards in Europe and the United States will become close enough to allow for more economical diesel production.
But Jim Hall, analyst at 2953 Analytics, says even that won't significantly close the cost gap between diesel and gas.
"A diesel engine will always be more expensive than a gas engine built in similar quantities," Hall said in a telephone interview. "Higher volume doesn't make it less expensive to build than a gas engine."
http://www.detroitnews.com/article/20130401/AUTO01/304010352/1148/rss25
04-02-2013 | 08:38 PM
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Maybe it's me, but the general public simply doesn't know squat about engines, diesel or otherwise. Diesels have never been marketed well in North America like they have been across most of Europe and our "powers that be" won't allow people being properly educated on the matter. With that, I don't expect to ever see diesel engines sell here as they do in Europe. Besides, our government has made so many stupid decisions about fuel efficiency standards that the price for diesel power will almost never be feasible to the average American. We could surely have a 100mpg diesel car available to the masses by now, but we don't... Anyone shocked? didn't think so.
Not a bad article, by the way.
Not a bad article, by the way.
04-03-2013 | 01:39 AM
#3
04-03-2013 | 08:11 PM
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From: N. FL
Not really. They're each pointing out half the story, that's all. Many of the new 4 poppers are what we all dreaded during the 70's and into the 80's... hell, into the 90's. They were just bigger(cubes) back then for the same tremendous lack of power. Some of todays 4cyl engines though... really put out like a common *****. They're not 1L engines, of course. I think the older story just points out that many of these new cars lack power in general.
