by Adam Aston, businessweek.com
For most of the past century, diesel engines have been associated with smoky, smelly trucks and buses. Now there's a surprise: A new generation of diesel-powered passenger cars is delivering punchy performance and emission levels so low they pass muster in all 50 U.S. states. Boasting good fuel efficiency, the new "clean diesels" may well overtake hybrids in the market for eco-cars.
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And while trucks and SUVs currently make up most U.S. diesel sales, the action is shifting to high-mileage sedans. Consider VW's experience. A few years ago, it had to pull most of its popular diesels from the U.S. market to comply with tougher emissions rules. This year, the company is launching an updated diesel Jetta in all 50 states. Honda also has a tale to tell. After suffering an embarrassing flop with its hybrid version of the Accord, Honda is replacing it with a diesel model adapted from its European line and plans to sell a six-cylinder diesel Acura.
The high fuel efficiency of diesel cars makes for attractive economics. Compared with similar gas engines, diesels deliver up to 35% better mileage. So even though prices for diesel at the pump are now running about 12% more than gasoline, per-mile fuel costs for new diesel cars are 15% to 20% lower than for gas-powered autos.
Add up the numbers, and diesel owners may do better than drivers of hybrids. According to researchers at Edmunds.com, shoppers who chose a Toyota Camry Hybrid over a comparable gas-driven model last year paid premiums of as much as $3,800. With gas at $3 per gallon, it would take those buyers anywhere from 3 1/2 to 8 years to recoup the higher cost through savings on gas. In contrast, the premium on a Mercedes E320 Bluetec diesel was about $1,400, and the fuel savings would pay off in under 2 years.
Complete article at:
http://www.businessweek.com/magazine/content/08_16/b4080056305408.htm?chan=top+news_top+news+index_lifestyle