NewsTalk

Welcome to the archives for NewsTalk, an IBJ blog published from November 2007 through December 2010.

The future for diesel cars

January 19, 2009
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A number of car companies have introduced, or plan to introduce, clean-diesel engines to cater to buyers wanting better fuel efficiency.

Diesels from Volkswagen and other manufacturers boost mileage by about a third, but much of that advantage in the past year or two has been wiped out by the gaping difference between diesel and gasoline prices. That spread was about 80 cents at points last year.

Diesel currently runs about 53 cents a gallon over the national average of $1.78 for unleaded, according to the Energy Information Administration.

Tom Kloza, one of the nationâ??s foremost energy analysts, believes the gap will shrink to as little as 25 cents over the next few years.

That will make the diesel option more attractive for buyers, says Kloza, who publishes Oil Price Information Service.

Buyers most likely to steer toward diesels are soccer moms and other upscale buyers who want to keep driving big SUVs, he says.

Diesel burners â??have a more substantial future,â?? Kloza contends.

What about you? Is a diesel engine appealing?
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