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Business English: Diesel - no longer a dirty word in the US

In the new climate of energy efficiency, this could be a breakthrough year for the fuel in America. von Bernard Simon (Detroit)

An Audi high-performance sports car, a big Dodge truck and a Mitsubishi coupe unveiled at the Detroit auto show last week have something in common: a diesel version. After being a dirty word among Americans for the past three decades, diesel could be on the verge of a comeback - or perhaps not. Almost all leading carmakers have added diesel to the list of technologies that could help them meet the recently mandated target of a 40 per cent rise in fuel efficiency standards by 2020. Jim Taylor, Cadillac's general manager, says that while market research consistently suggests that Americans' prejudice against diesel remains intact, the luxury brand has "resurfaced for active debate" the prospect of producing diesel vehicles in the US. Diesel engines are about 30 per cent more fuel efficient than petrol. They also provide more torque, and thus more powerful acceleration. "It is absolutely appropriate to name 2008 the year of breakthrough for clean diesel in the US," Matthias Wissmann, president of the German Association Automotive Industry Association, enthused in Detroit. But that is by no means a foregone conclusion. Rebecca Lindland, an analyst at Global Insight, a consultancy, cautions that "there are a lot of positives about diesel, but it's all about educating the American consumer". She adds that US politicians and regulators have yet to be convinced that diesel does not spew particulates and noxious emissions into the air. General Motors helped sully diesel's name during the the 1970s oil crisis by converting an Oldsmobile petrol engine to diesel, with disastrous results. The converted vehicles were smelly, noisy and also prone to breaking down. The bad reputation has lingered. Diesels made up only 3 per cent of US car and light-truck sales last year, compared with more than half in Europe. While diesel pumps at retail filling stations in the US are easier to find than they used to be, they are still only available at fewer than half of all outlets. Unlike Europe, diesel typically costs more than petrol in the US, mainly because it competes for refining capacity with home heating oil. Diesel currently sells for $3.43 a gallon, versus $3.07 for petrol, according to the AAA motoring organisation. Diesel cars are also more expensive. The Mercedes-Benz E-320, which went on sale last month, was the first diesel to comply with stringent emission standards in all states. BMW, Volkswagen and Honda's luxury Acura brand, among others, are set to follow in the next year or so. "We must keep showing [the Americans] the advantages of diesel, and showing that the diesel engine is not like a truck", says one VW executive. JD Power, a consultancy, projects that diesels will make up 15 per cent of US vehicles by 2015. But others are hanging back, waiting to see whether the image problems can be overcome. The Audi and Mitsubishi cars that have been shown in Detroit are only design concepts at this stage. "It's something we're watching very closely," says Steve Shannon, general manager of Saab, all of whose models are available in diesel versions in Europe. "If conditions change, we have the capability," he added.

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