Volkswagen on Diesels: Where is the Love?
August 22, 2013 10:26 AM
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VW wants more incentives
Volkswagen AG (VW) wants diesel vehicles to get federal and state incentives similar to those for electric vehicles (EVs). Instead, the automaker feels diesels are "penalized."
“We’re not feeling the love,” said Anna Schneider, vice president for industry and government relations at VW Group of America. “This is one of the greenest choices... It’s time the U.S. government included clean diesel in its ‘all of the above’ strategy’ for greening U.S. roads. Putting these vehicles on the road should be incentivized and not penalized, and that’s our goal.”
Diesels are about 30 percent more fuel efficient than gasoline vehicles, but the problem is that diesels have a higher carbon content than the gasoline-powered cars. For that reason, the U.S. Environmental Protection Agency (EPA) said that diesels only cut carbon emissions by 7 to 20 percent.
Hence, diesels don't get the same treatment as EVs. EVs receive many advantages, such as federal and state tax credits, access to carpool lanes, etc. This is because EVs are seen as key contributors to "greening" the auto industry, and that's especially important right now with the new
54.5 MPG CAFE standards
in place for 2017-2025 model years.
In fact, these new standards don't give diesels additional credits the way it does other vehicles. The EPA said it doesn’t believe diesel vehicles push the commercialization of technologies that will help autos reach zero (or even near-zero) emissions. In addition, the EPA doesn't seem to think that diesels have an issue with "consumer acceptance."
Further hurting the cause of diesels is that 15 U.S. states place additional taxes on diesel, and federal taxes for diesels are 6 cents higher than those of gasoline-powered autos.
EVs, on the other hand, are eligible for a $7,500 federal tax credit.
VW is a known promoter of diesel vehicles. For instance, the company confirmed
its XL1 hybrid
for production earlier this year. The two-seat Volkswagen XL1 has a plug-in diesel hybrid system that allows it to achieve 314 MPG and 31 miles on electric power alone. The CO2 emissions sits at 21 g/km, and it is considered the most aerodynamic car with a Cd figure of 0.189. It's also very light at just 1,752 pounds.
The Detroit News
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Amount of Crude
8/23/2013 2:08:14 PM
Doesn't the larger amount of crude oil required to produce Diesel vs. Gasoline negate the benefits of Diesel in small vehicles?
RE: Amount of Crude
8/23/2013 4:35:11 PM
Supply and demand drives cost and prices.
There is less demand on Diesel than there is on Gasoline. As diesels become more prevalent in cars, this will change.
The gas company's biggest gripe today is that very reason. They see gasoline becoming less valuable and the harder to produce diesel more valuable. Because there is always more gasoline produced per barrel of crude than diesel, this will create a surplus of gasoline on the world markets and gas prices will fall as a result of less demand. Oil companies don't like to seeing their bread & butter money maker devaluing in favor of something that is harder for them to produce in projected quantities.
Clean diesel engines are a great thing today, but I personally envision trouble (and high costs) on the horizon as these start supplanting petrol engines.
MONKEY'S UNCLE PREDICTS:
Expect to see diesel become the new "Premium" grade gas 10-15 years from now.
Remember, you saw it here first! ;)
RE: Amount of Crude
Dr of crap
Dr of crap
8/26/2013 3:41:45 PM
I'm sorry but I've seen this to many times on here to let it slide -
Supply and demand
have no place in gas pricing and if you research it you'd see that it has no bearing. OPEC has very little to say about oil price any longer. We have increases in gas supplies and the price goes up, we have conflicts in Middle East countries and the price goes up.
Look into it and see the oil futures trading determines the direction that gas prices will go.
"It seems as though my state-funded math degree has failed me. Let the lashings commence." -- DailyTech Editor-in-Chief Kristopher Kubicki
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