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Title: The 65 mpg Ford the U.S. Can't Have
Source: [None]
URL Source: [None]
Published: Sep 22, 2008
Author: David Kiley
Post Date: 2008-09-22 16:01:55 by richard9151
Ping List: *Agriculture-Environment*     Subscribe to *Agriculture-Environment*
Keywords: None
Views: 302
Comments: 15

by David Kiley

Friday, September 19, 2008

If ever there was a car made for the times, this would seem to be it: a sporty subcompact that seats five, offers a navigation system, and gets a whopping 65 miles to the gallon. Oh yes, and the car is made by Ford Motor, known widely for lumbering gas hogs.

Ford's 2009 Fiesta ECOnetic goes on sale in November. But here's the catch: Despite the car's potential to transform Ford's image and help it compete with Toyota Motor and Honda Motor in its home market, the company will sell the little fuel sipper only in Europe. "We know it's an awesome vehicle," says Ford America President Mark Fields. "But there are business reasons why we can't sell it in the U.S." The main one: The Fiesta ECOnetic runs on diesel.

Automakers such as Volkswagen and Mercedes-Benz have predicted for years that a technology called "clean diesel" would overcome many Americans' antipathy to a fuel still often thought of as the smelly stuff that powers tractor trailers. Diesel vehicles now hitting the market with pollution-fighting technology are as clean or cleaner than gasoline and at least 30% more fuel-efficient.

Yet while half of all cars sold in Europe last year ran on diesel, the U.S. market remains relatively unfriendly to the fuel. Taxes aimed at commercial trucks mean diesel costs anywhere from 40 cents to $1 more per gallon than gasoline. Add to this the success of the Toyota Prius, and you can see why only 3% of cars in the U.S. use diesel. "Americans see hybrids as the darling," says Global Insight auto analyst Philip Gott, "and diesel as old-tech."

None of this is stopping European and Japanese automakers, which are betting they can jump-start the U.S. market with new diesel models. Mercedes-Benz by next year will have three cars it markets as "BlueTec." Even Nissan and Honda, which long opposed building diesel cars in Europe, plan to introduce them in the U.S. in 2010. But Ford, whose Fiesta ECOnetic compares favorably with European diesels, can't make a business case for bringing the car to the U.S.

Too Pricey to Import

First of all, the engines are built in Britain, so labor costs are high. Plus the pound remains stronger than the greenback. At prevailing exchange rates, the Fiesta ECOnetic would sell for about $25,700 in the U.S. By contrast, the Prius typically goes for about $24,000. A $1,300 tax deduction available to buyers of new diesel cars could bring the price of the Fiesta to around $24,400. But Ford doesn't believe it could charge enough to make money on an imported ECOnetic.

Ford plans to make a gas-powered version of the Fiesta in Mexico for the U.S. So why not manufacture diesel engines there, too? Building a plant would cost at least $350 million at a time when Ford has been burning through more than $1 billion a month in cash reserves. Besides, the automaker would have to produce at least 350,000 engines a year to make such a venture profitable. "We just don't think North and South America would buy that many diesel cars," says Fields.

The question, of course, is whether the U.S. ever will embrace diesel fuel and allow automakers to achieve sufficient scale to make money on such vehicles. California certified VW and Mercedes diesel cars earlier this year, after a four-year ban. James N. Hall, of auto researcher 293 Analysts, says that bellwether state and the Northeast remain "hostile to diesel." But the risk to Ford is that the fuel takes off, and the carmaker finds itself playing catch-up—despite having a serious diesel contender in its arsenal.

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Begin Trace Mode for Comment # 10.

#2. To: richard9151 (#0)

VW has a Jetta diesel which gets 40 - 50mpg.

Ford is out to lunch for not selling here.

Lod  posted on  2008-09-22   16:17:30 ET  Reply   Untrace   Trace   Private Reply  


#3. To: lodwick (#2)

Ford is out to lunch for not selling here.

Who cares?

The govt will bail them out.

Ninpo  posted on  2008-09-22   16:19:03 ET  Reply   Untrace   Trace   Private Reply  


#4. To: Ninpo (#3)

Ford is out to lunch for not selling here.

Who cares?

The govt You and I will bail them out.

Lod  posted on  2008-09-22   16:24:22 ET  Reply   Untrace   Trace   Private Reply  


#7. To: lodwick (#4)

Ford is out to lunch for not selling here.

Did it ever occur to you that maybe it isn't Ford keeping these cars out?

Hint: You supported his presidency in 2000 and 2004 and his crime family and now their latest standard bearer mcinsane and sara twit.

Can you say big oil?

Need any more hints?

LACUMO  posted on  2008-09-22   18:02:00 ET  Reply   Untrace   Trace   Private Reply  


#8. To: LACUMO (#7)

Hint: You supported his presidency in 2000 and 2004 and his crime family and now their latest standard bearer mcinsane and sara twit.

freeper material

Ninpo  posted on  2008-09-22   18:05:11 ET  Reply   Untrace   Trace   Private Reply  


#9. To: Ninpo (#8)

freeper material

I dunno if loddie is still freeper material but just last week he was praising sara the bitch vp wannabe and apparently the whole gopu ticket. If that's freeper material, then I guess loddie wears the shoe.

LACUMO  posted on  2008-09-22   18:12:27 ET  Reply   Untrace   Trace   Private Reply  


#10. To: LACUMO (#9)

I dunno if loddie is still freeper material but just last week he was praising sara the bitch vp wannabe and apparently the whole gopu ticket. If that's freeper material, then I guess loddie wears the shoe.

libertoidism is the reactionary stance of replublocrats trying to distance themselves from bushco.

Ninpo  posted on  2008-09-22   18:14:41 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 10.

#11. To: Ninpo (#10)

libertoidism is the reactionary stance of replublocrats trying to distance themselves from bushco.

Is that what loddie has become? Then why did you call him freeper material?

There is no one that can compare to the best and that is Ron Paul.

Come to grips with that!

LACUMO  posted on  2008-09-22 18:22:43 ET  Reply   Untrace   Trace   Private Reply  


#15. To: Ninpo (#10)

The Opel Eco Speedster Says: Diesels Can Rip and Sip at the Same Time.

rack42  posted on  2008-09-22 23:27:44 ET  Reply   Untrace   Trace   Private Reply  


End Trace Mode for Comment # 10.

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