To: Marlin C. Harmon who wrote (9451 ) 5/30/1998 9:46:00 AM From: John Chylek Read Replies (1) | Respond to of 13091
USA Today article on diesel fuel. No link is available, but it appeared on May 26, 1998,in the Money section: DIESEL: OPPORTUNITY KNOCKS Gas Prices Fuel Global Demand for Engines By Micheline Maynard USA Today DETROIT - Diesel engines still have a tarnished image with consumers, but they may have a bright future with the automakers. Almost every major company, from GM to Toyota, has developed a new diesel engine family or has one in the works. While most are aimed at overseas markets, where gasoline prices are five times what they are in the USA, automakers think diesels could help address growing concerns here about fuel economy spurred by rising truck sales. "Diesels will prove to be very marketable commodities," says McDonald and Co. analyst Greg Kagay. Diesels enjoyed some popularity in the early 1980s after two energy crisis sent gasoline prices soaring. But once gas prices fell, drivers turned up their noses, tired of start-up rattles and smelly fumes. That was never the case elsewhere in the world, where $5 gallon gas prices have kept diesels in demand. In Europe, diesels own 28% of the car and truck market, spurring automakers to invest billions of dollars to stay competitive. *This past year, GM introduced small diesel engines made in Germany for its Opel cars. *Mercedes buyers here can choose a super-smooth turbo-diesel on the flagship S-Class and mid-priced E-Class. Next year, Mercedes will offer a diesel engine to European consumers on M-Class sport utility, built near Tuscaloosa, Ala. *Volkswagen beetles can ordered with a diesel. So can Saab's newest cars, the 9-5 and 9-3. *Engines are in the works at Peugeot and Isuzu. The Ford Focus will be in Europe in the Fall. Diesels have been available on big pick-ups sold by US automakers, mostly bought for business use. But Chrysler officials suspect the diesels might attract a wider audience: consumers lusting for bigger and more powerful vehicles but quivering at frequent stops for $35-a-tank-fill-ups of gasoline powered sport vehicles and minivans. While diesel fuel isn't cheaper, drivers get many more miles to the gallon with it. That's why one Chrysler concept vehicle at this year's Detroit auto show was Dodge's Big Red Truck featuring a 24 valve, 5.9-liter, 6 cylinder, electronically fuel-injected turbo-diesel by Cummins Engine. Available as a $4,625 option on Dodge Ram 2500 and 3500, the engine can lug 11,000 pounds. Chrysler already has 1,300 orders for the engine and thinks it can sell as many as 60,000 this year. The engine, whose predecessor topped out at 2,700 rpm, now revs to 3.200 rpm. It has a new turbo-charger, and electronic fuel system, a new engine block and new cylinder heads, all designed to make it more "gasoline-like," says Cummins Engine marketing director Peter Hartzell. The improved performance still comes with admirable fuel economy. A Ram truck equipped with a Chrysler V-10 gasoline engine gets 12-14 mpg; the Cummins diesel averages 22-25mpg. Chrysler is so pleased that that CEO Robert Eaton has said the company will continue to do business with Cummins even after Chrysler merges with Daimler-Benz, a deal that gives Chrysler access to Mercedes engines. Meanwhile, Kagay expects even more impressive developments. Auto makers are teaming with oil companies to develop cleaner diesel fuels. GM's partner is Amoco: Ford has teamed with Mobil. And automakers hope a new generation of diesels will offer power and response without the clanking. Says Hartzell, "The big question is, will diesels show up on your typical suburbanite vehicle? That's what we'll be watching for the next five years. END