Germans to fight the Japanese on the beaches for diesel sales

With the advent of Ultra Low Sulphur Diesel and other emissions and particular matter reducing technologies, diesel is back in a big way in markets like the U.S. and down here in Australia. Of course the clear advantage diesel has over petrol in fuel economy is old news to the Europeans where favourable taxation rules have seen diesel passenger vehicles compete head to head with petrol vehicles for a long time. This huge market at home has meant that the European car makers have led the world in new diesel technologies like Common Rail and Turbodiesel Direct Injection.

But don't expect the Japanese car makers to ignore a booming market - the share of new diesels in the U.S. car and light truck will likely double to around 7.5 percent by 2010. Japanese automakers have forged an early lead in petrol-electric hybrid technology in the US, leaving the German car makers counting on their reputation for cutting-edge diesel technology in a US market that is expected to shrink overall in 2007. And don't expect the Germans to share the diesel market with anyone if they can help it. Bernd Gottschalk, head of the Germany car industry association VDA, said at the Detroit auto show, "The goal can only be to make life as difficult as possible for the Japanese."

[Source: Playfuls]

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