TPT November 2008

From the AmericaS

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,

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