To the average American car buyer, diesel is synonymous with truckers, farm equipment, and an upscale clothing brand. For Europeans however, diesel is the must-have fuel for those who can’t stomach the $8.70/gal (current average price in Germany) for gasoline. With diesel selling for $1 less per gallon and providing greater fuel economy, it’s no wonder more Europeans prefer diesel cars. While American fuel prices remain far cheaper, recent price hikes have had more people asking: where’s our diesel option?
A host of factors have contributed to the dearth of diesel cars here in the United States. Until 2007, the allowable sulfur content in American diesel fuel was far higher than in Europe, requiring manufacturers to completely re-engineer engines for our market. While the sulfur content is now the same, American limits on NOx and NO2 emissions are still significantly lower than their European counterparts, demanding use of an expensive urea-injection additive such as AdBlue to meet standards. Higher labor costs have also been an issue, as most diesels built in European countries suffer from unfavorable exchange rates when exported overseas. Building a diesel engine factory in either the U.S. or Mexico would reduce labor cost – if buyers can be found for the 350,000 units a year a typical $350 million factory puts out. Finally, EPA certification for a new engine adds even more to the bottom line.