Risk

Without risk, there’s little gain. This is why the American carmakers are in a pickle in the first place. They won’t take a chance on something new and innovative states-side. Toyota, Honda and others, are killing them as a result. Who needs an American car that gets 65 miles per gallon? Here’s another prime example why Detroit is in so much trouble, the 2009 Ford Fiesta ECOnetic. It will be offered in Europe, but not in North America. A top executive at Ford said, “We just don't think North and South America would buy that many diesel cars.” Then why are Nissan and Honda developing diesel vehicles for the US market? Why are VW and Mercedes bringing diesel cars back into their lineups for North America? The writing is on the wall. California certified VW and Mercedes diesel cars earlier this year, after a four-year ban.

There’s never been a better climate for diesel engines, especially with the new advances in clean diesel technology. Not to mention the alternative fuel options with diesel engines running on cooking oil and bio-diesel. Diesel engines also have a proven longevity – they last years and hundreds of thousands of miles longer than conventional gasoline counterparts. The old stigma and the fact that they don’t have enough “horse power” are factors that have kept them from being widely accepted in the US. Americans need to realize a few truths and get over the bias. First of all, horse power isn’t everything. 250 horse power is not always more powerful/better than 150. Second, diesel engines are no longer the loud, smelly, black smoke producers they were before.

The ultimate determining factor though is going to be price. The average citizen isn’t going to pay a premium up front if they can’t recoup the cost quickly enough down the road. Current pricing models are not conducive to widespread acceptance. It might be trendy to be green, but only the wealthy can actually afford to do it. I mean five plus years to break even on a car when choosing the hybrid version isn’t very appealing (e.g. – Honda Accord hybrid vs. gasoline). I was looking at Diesels four years ago, but the closest thing I could find to what I wanted was the VW Passat TDI. Unfortunately the last model year they were imported was 2005 (at the very time I was looking). Volkswagen also had reduced the number they imported in the years preceding 2005. That meant there were not a lot of used ones out there and there weren’t going to be any new ones. When gas prices shot up, I knew I wasn’t going to be able to afford a used one anymore, let alone find one. I kick myself for not being more diligent at the time. Maybe I’ll be rewarded with some nice options in the next few years, albeit brand new cars. We’ll have to wait and see.