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The big three need diesel

http://dailyuw.com/2008/12/3/big-three-need-diesel/

By Mike Noon
December 3, 2008

If you have been listening to the auto industry bailout debate, you might think the major problem is generous union contracts (Full disclosure: I am a member of UAW Local 4121). While the list of problems of GM, Ford and Chrysler is long, the greatest of these is that few people believe Detroit can regain its former glory. No one is going to give an industry $25 billion if they see no hope in its future. With some careful planning, the big three can make a comeback by going retro. They need to bring back the diesel car.

The years of neglect of Detroit’s non-SUV division has taken its toll. Every year, Consumer Reports releases its top vehicle pick for 10 different categories. In 2008, only one American vehicle, GM’s Chevrolet Silverado, was chosen as the best in its class. The popular Edmunds.com Consumers’ Top Rated Vehicle shows a similar result. Out of 20 vehicle categories, American vehicles only won in six classes. This gap is especially prevalent for sedans and wagons, where American vehicles were top-rated in only two out of 13 categories.

Vehicles such as the Chevrolet Malibu, Ford Fusion and the exotic Chevrolet Volt have been the answer to this growing dearth of American passenger vehicles. This approach is likely to fail because companies such as Toyota and Honda have years of experience in producing small, cheap compact cars and hybrids Americans love. GM or Ford will have a tough time trying to unseat these giants if they play the game as the visiting team.

Diesel-powered cars are the best way for U.S. automakers to regain their market share. While gasoline’s petroleum cousin powers approximately half of European vehicles, only 3 percent of American vehicles run on diesel. There is significant room for growth in the U.S. diesel market.

American automakers also have many years of experience in diesel vehicles. Cars such as the Ford Temp, Buick Century and even the Chevrolet El Camino had diesel-powered versions in the 1980s. Overseas, both GM and Ford have successful diesel vehicles, such as the Cadillac CTS, Ford Fusion TDCi and the Ford Fiesta ECOnetic that gets 65 mpg.

Domestically, the diesel engine option is relegated to the truck and SUV classes. GM has diesel alternatives of its Chevrolet Silverado, Dodge Ram and GMC Sierra pickup trucks. Ford offers diesel on some of its F-Series pickups. Even Chrysler has a diesel version of its Jeep Grand Cherokee.

The biggest obstacle to widespread adoption of diesel vehicles in the U.S. is that they do not pass our air quality requirements. Diesel vehicles generally emit more pollutants than their gasoline counterparts, requiring additional pollution control equipment. Mercedes-Benz has developed one such system that is included in its E320 BlueTec sedans. Another development that has helped reduce diesel vehicle pollution is the switch to ultra-low-sulfur diesel in the U.S., which is significantly reducing sulfur dioxide emissions.

Switching to biodiesel means an even greater reduction in air pollution. GM, Ford and Chrysler could regain market share in an environmentally friendly manner by introducing a product line of biodiesel-ready cars. Beyond helping comply with U.S. air pollutant laws, the three automakers could partner with local producers to expand biodiesel production nationwide.

While the list of problems facing U.S. automakers is long, biodiesel-powered cars represent a plausible path for the big three to regain their place in American garages. All the technology and knowledge exists for GM, Ford and Chrysler to bring their successes in foreign diesel markets back home.

Reach columnist Mike Noon at [e-mail].