Car blogs

By John O'Dell, Senior Editor


Concerns about rising material costs, slumping economic conditions and the growing disparity between diesel fuel and gasoline prices Honda  Motor Co. is  reconsidering its decision to launch clean diesel cars in the U.S. and Japan next year.

----------
Honda displayed its 4-cylinder clean diesel engine at the 2008 Detroit auto show.
----------



While no decision has been made, Honda product and market planners "are carefully assessing the situation, said David Iida, a spokesman for American Honda Motor Co.  "We're concerned about fuel price trends and material costs."


Honda hasn't priced its proposed clean diesel models, but because they require more expensive engines with beefier components and sophisticated high-pressure fuel injection systems, diesels typically cost $1,000 to $3,000 more than comparably equipped gasoline cars.


In a falling economy with rising unemployment and record-low consumer confidence levels, the case for cars that cost more isn't a good one.


Adding to the pressure, the gap between diesel fuel and gasoline prices has been growing steadily as gas prices have plummeted in recent weeks,


Diesel engines typically deliver 20 percent to 30 percent better fuel economy than their gasoline counterparts, and motorists can see the benefit of a diesel car when diesel fuel doesn't cost much more than gasoline.


But diesel today is priced 31 percent more than gasoline on a national average, erasing the fuel economy benefits.


When the national average price of regular unleaded gasoline peaked at $4.11 a gallon on July 17, diesel was $4.84, or 18 percent more, according to the AAA Daily Fuel Gauge Report. Today, with gas at $2.55 a gallon, diesel is averaging $3.35.


Honda had said its first clean diesel for the U.S. would be in an unspecified Acura model (most industry watchers have speculated that it would be the TSX).


If the company pulls back for its 2009 launch date, the only diesel cars sold here will be from European manufacturers.


Like Volkswagen, Mercedes-Benz, BMW and a few others, Honda has developed a so-called 50-state clean diesel that meets the tough California emissions standards and can be sold throughout the U.S.  It uses a special catalytic converter that uses ammonia created in the engine exhaust to neutralize nitrogen oxides, or NOx.

Tags: Diesel, Honda, Honda Clean Diesel

---

Honda Ponders Sinking '09 Clean Diesel Launch Plan was originally published by Green Car Advisor. Read the full story by clicking here.