Fuel prices hamper push for diesel cars
Sunday, August 3rd, 2008European automakers’ efforts to persuade more Americans to buy cars with diesel engines are turning into an uphill battle because of rising prices at the pumps.
German manufacturers Volkswagen AG, Daimler AG and BMW AG have launched initiatives to make diesel cars more popular in the U.S. as they bet Americans will eventually overcome the perception that diesel engines are loud, smelly and polluting. But their plans appear to be stalling on the back of soaring oil prices.
“The recent price hike is a major blow for the companies’ initial plans to offer more cars with diesel engines in the U.S.,” said Global Insight analyst Roman Mathyssek. He said more-focused marketing efforts along with the diesel engine’s superior fuel efficiency still might be able to win over American customers, if the price for diesel eases again.
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