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Analysis: Automakers look to clean diesel

By CHRIS KILLIAN, UPI Energy Correspondent

KALAMAZOO, Mich., Nov. 16 (UPI) -- For decades, diesel engines were associated with plumes of thick black smoke and loud noise created from the heavy machinery and trucks they powered.

Carmakers are hoping that image is about to change, however.

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With the advent of a new, ultra-low sulfur diesel fuel that burns 97 percent cleaner than previous low-sulfur diesels, they are looking to significantly increase the number of passenger vehicles that run on diesel fuel.

J.D. Power & Associates is expecting the U.S. market for diesels to grow from 3.6 percent this year, or about 600,000 vehicles, to about 9 percent in 2013, or 1.66 million vehicles. By 2015, the group is projecting diesel cars to have a 12 percent market share.

"Demand for diesel cars is up after the recent spikes in gas prices," said Kevin Riddell, an analyst with J.D. Power and Associates. "The challenge now is to make consumers realize the quiet dependability of the new diesel engines."

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In January, new diesel engine regulations will force automakers to cut emissions by as much as 95 percent. As a result, new diesel-powered vehicles will run smoother and quieter than previous models.

Eron Shosteck, of the Diesel Technology Forum, calls ULSD "the great enabler" when referring to the way the fuel has enticed automakers to increase the number of models that use the fuel.

"There is a direct correlation between this new fuel and the predicted rise in passenger cars that use ULSD," Shosteck said. "The fuel is the catalyst."

Europe, where nearly 50 percent of cars run on diesel fuel, has for decades been a leader in the use of diesel technology, Riddell said. But Detroit should be catching on soon, he said.

Ford Motor Co. offers several diesel heavy-duty pickups, such as the F-250 and 350 pickups, and is planning to make it available in the popular F-150.

General Motors Corp. offers several diesel heavy-duty trucks and is planning to offer V-8 diesel engines for use in light-duty pickups after 2009.

Even Japanese automaker Honda Motor Co. -- long known for its fuel-efficient models -- has said it plans to introduce a diesel vehicle within three years capable of meeting California's emissions standards, which are the strictest in the nation.

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"Diesel engines have the fuel economy that people want," said Susan Garazadlia, manager of communications for GM Powertrain, the automaker's engine and transmission development arm. "In the future, we could even see SUV's that run on diesel."

Under normal driving conditions, diesel engines get about 25 percent better gas mileage than gasoline engines, Garazadlia said, adding that their dependability should also be attractive to consumers.

Still, automakers will need to overcome initial price premiums, which can be more than $1,000 for passenger cars to about $4,000 for trucks, and tough emissions standards in states such as California and Massachusetts.

Currently, the cost to refine and distribute ULDS, which has been available at service stations since Oct. 15, is about 4 to 5 cents more expensive than the old diesel.

But the benefits for carmakers could far outweigh the initial challenges, Riddell said.

"Carmakers could significantly expand their market scope by getting on-board with the new diesel movement," he said. "The new regulations are going to force them to develop engines that meet the new requirements.

"One day, we might even see luxury cars that run on diesel."

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