Come November, Ford Motor Co. will begin selling a sporty little model called the 2009 Fiesta ECOnetic.
This subcompact seats five, costs about as much as a Toyota Prius and gets much better mileage – 65 miles per gallon.
But if you want to test-drive an ECOnetic, you'll have to travel to Europe. Ford isn't selling it here.
As Ford America President Mark Fields told Business Week recently, "There are business reasons we can't sell it in the U.S."
What's the story here? Is this another dumb marketing decision by a U.S. automaker? A repeat of GM selling Hummers instead of hybrids?
Perhaps. But Ford's decision is wrapped up in an important feature of the ECOnetic: It runs on diesel fuel. The United States has tougher emission standards on diesel than Europe does, and Europe has relatively high taxes on motor fuels. Therefore, it makes sense that Ford would see a clear market for the fuel-efficient ECOnetic in Europe instead of the United States.
Even so, it's only a matter of time before consumers, regulators and the auto industry see the potential of cleaner-burning diesel.
Diesel vehicles can be mass-produced at a lower cost than hybrids, and generally they get much higher fuel economy. Although many consumers equate diesel with stinky tailpipes, automakers (prodded by environmental regulations) are making cleaner models all the time.
This year, the California Air Resources Board certified the sale of diesel cars made by Mercedes and Volkswagen because of their cleaner emission systems. In 2006, the federal government enacted regulations that call for a 97 percent reduction in the sulfur content of diesel fuels, a big reason that diesel is cleaning up its act.
Currently, a gallon of diesel costs about 60 cents more than a gallon of gasoline, but that price differential should narrow over time. As refiners become more accustomed to making the low-sulfur diesel, prices for the fuel will drop, and penny-conscious consumers will be attracted to vehicles that could get 65, 70 or even 80 miles per gallon.
Wondering what the cars of the future will look like? Plug-in hybrids? Cars with hydrogen fuel cells? Both of those are promising. Diesel vehicles could well serve as a bridge to that cleaner future, assuming they ever show up in our car lots.
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