TPT November 2008

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From the AmericaS
81 November 2008 ›
that the American driving public dislikes the fuel. Only 3 per cent of
cars on the roads of the US run on diesel (‘The 65mpg Ford the US
can’t have,’ 4 September).
Mr Kiley wrote, “Automakers such as Volkswagen and Mercedes-
Benz have predicted for years that a technology called ‘clean diesel’
would overcome many Americans’ antipathy to a fuel still often
thought of as the smelly stuff that powers tractor trailers. Yet, while
half of all cars sold in Europe last year ran on diesel, the US market
remains relatively unfriendly” to the fuel.
“Americans see hybrids as the darling,” Global Insight auto analyst
Philip Gott told Business Week, “and diesel as old-tech.”
Even so, and despite the fact that diesel costs from between
40 cents and a dollar more per gallon than gasoline in the US,
European and Japanese auto makers – including Nissan and Honda
– are readying diesel entries for the US market. Why not Ford?
“First of all, the engines are built in Britain, so labour costs are
high,” explained Mr Kiley. “Plus, the pound remains stronger than
the greenback. At prevailing exchange rates, the Fiesta ECOnetic
would sell for about $25,700 in the US. By contrast, the Prius [a
hybrid built by Toyota] typically goes for about $24,000. A $1,300
tax deduction available to buyers of new diesel cars could bring the
price of the Fiesta to around $24,400. But Ford doesn’t believe it
could charge enough to make money on an imported ECOnetic.”
• For Business Week’s Mr Kiley the question is whether the US
ever will embrace diesel fuel and allow automakers to achieve
sufficient scale to make money on such vehicles. Volkswagen
and Mercedes diesel cars were certified for sale in California
only this year. James N Hall, of auto researcher 293 Analysts,
said that California and the Northeast remain ‘hostile to diesel’.
But Mr Kiley sees this risk to Ford in waiting for the hostility
to subside: “The fuel takes off, and the car maker finds itself
playing catch-up despite having a serious diesel contender in its
arsenal.”
Elsewhere in automotive . . .
› According to theAmericanCustomer Satisfaction Index, compiled
by the University of Michigan and published 19 August, US car
buyers in greater numbers are dissatisfied with their purchases from
domestic automakers. The results of a telephone survey show Asian
and European carmakers gaining in appeal to Americans at the
expense of the Detroit producers.
Customarily, US brands raise their customer satisfaction scores
each year – although not as much as their overseas rivals. This
time, however, the ratings of the domestic companies declined even
as their competitors’ scores continued their climb. Lexus and BMW
tied for first place, followed by Toyota and Honda – ousting General
Motors’ Buick and Cadillac brands, and Ford Motor’s Lincoln and
Mercury lines, from the No 2 slot.
The survey inquired of 5,500 people who bought cars within the past
three years how their satisfaction level compared with expectations,