Thursday, September 30, 2010

Toyota and diesel engines in the U.S.

Why doesn't Toyota make new diesel vehicles for the US market? Here's a perspective that speaks from the standpoint of consumer perception of diesal.


The California Air Resources Board (CARB) requires that diesel passenger vehicles and light trucks meet the same emmissions requirements as gasoline vehicles. Some other states (Massachusetts, New York, Vermont, and Maine) also follow CARB standards. Depending on who you talk to, it's either cost-prohibitive or technically not possible to make diesel engines that meet CARB standards for passenger vehicles using the low-quality, high-sulphur diesel fuel currently sold in the US. Most manufacturers don't want to go through the expense of EPA/DOT testing and certification for a vehicle that can only be sold in non-CARB states -- which exclude some of the largest vehicle markets in the country.

Market research probably also shows that many Americans have a negative opinion of diesel vehicles. They think of large trucks with plumes of thick black exhaust, the noisy, clattery diesel engines in early Mercedes, or the disastrously unreliable diesel engines produced by GM in the early 1980's. Also, there's no getting around the fact that there's an inconvenience factor involved in owning a diesel. Only 1-in-4 gas stations in the US have diesel available.

Some people also believe there's an oil industry conspiracy to keep fuel-efficient vehicles out of the US market.

Things may be changing for the better though. Current regulations will require refiners to start producing low-sulphur diesel fuel (ULSD) in 2007. That may make it easier for manufacturers to produce diesel engines that meet CARB requirements for a reasonable cost. Also, recent spikes in fuel prices have greatly increased public demand for fuel-efficient vehicles.

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