Saturday, January 3, 2009

65mpg Ford - and the Realities of Economics

Taken from: "The 65-mpg car Ford won't sell in US" by BusinessWeek. In brief, the 2009 Ford Fiesta ECOnetic gets 65mpg, runs on diesel, is as clean as a gas engine, and won't be sold in the U.S.

It won't be sold in the U.S. because, with the strength of the pound v. the weak dollar, it would run $25,700. The engines are built in the U.K., so even if the cars were built in Detroit, Canada, or Mexico, the key technology for that wonderful MPG figure would still make it cost prohibitive.

The cost to build or retool to build diesel engines in the U.S. is a prohibitive $350 million.

I've long liked diesel engines - the fun, drivable torque, the throaty rumble, and the great mileage. They also adapt well to performance modification. Vehicles like the European Jetta TDI and the Audi A5 TDI are great examples of efficient, sporty vehicles.

In the U.S. though, diesels are largely limited to commercial freight trucks and heavy-duty pickup trucks. The higher particulate levels in emissions are also a worry,as is the higher cost per gallon (which is largely a result of higher taxes aimed at commercial trucks as opposed to non-commercial gas taxes aimed at everyday drivers).

So Ford, which along with Chrysler and GM have become the red-headed step children of the economic downturn, has the potential for green, efficient cars and trucks. Unfortunately, due to U.S. regulations on diesel, consumer prejudice, and general cost issues, the money tree doesn't balance out.

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