Nissan and VW convert to diesel for the US market

19 April 2007

Washington: Nissan and Volkswagen (VW) have joined a growing league of international car giants who are now converting themselves to the cause of diesel. Nissan has announced that it plans to sell a diesel-power version of its Maxima sedan in the USA in 2010, while Volkswagen has announced that it will develop and sell diesel cars specifically for the US market before launching them in Europe.

The announcements mark a turnaround for a market that has traditionally been considered as anti-diesel.

"It's a sort of bet you're making that (fuel-economy) regulations will continue to get stricter and fuel prices will continue to get higher," Nissan Motor CEO Carlos Ghosn said at a meeting of the Council on Foreign Relations here Wednesday.

He said that an "extremely powerful" diesel Maxima that will meet strict anti-pollution regulations in all 50 states would be launched by 2010.

Typically, diesels get 20% to 40% better fuel economy than gasoline engines because of which they also emit less carbon dioxide, a greenhouse gas blamed for global warming. As diesels also generate more low-speed torque than gasoline engines, they're better suited to low-speed, stop-and-go driving common in the USA.

Early next year, VW will offer US diesel versions of its Jetta sedan and SportWagen, roughly $1,000 more expensive than gasoline models but still in the $20,000 range. This compares to diesel models from other companies that start at $40,000.