In Wake of High Gas Prices, Demand for Diesel Cars and SUVs Jumped 31 Percent in 2005

President Bush Promotes Expanded Incentives to Encourage Purchase of Fuel-Efficient Clean Diesels

WASHINGTON, April 27 -- With oil costs shattering records and gasoline prices causing concerns nationwide, savvy American consumers are increasingly turning to diesel-powered vehicles as a fuel-sipping alternative to gasoline, according to new research released today by the Diesel Technology Forum (DTF). The driving force behind this leap is that diesel engines are 20 to 40 percent more fuel-efficient than comparable gasoline-powered engines without requiring consumers to sacrifice power or performance.

Data compiled by R.L. Polk & Co. show that registration of diesel passenger vehicles in the U.S. -- including cars, trucks and SUVs -- has grown a remarkable 80 percent since 2000, up from 301,000 diesel vehicles that year to 543,777 diesel registrations in 2005. For the all-important light-duty market, diesel registrations nearly doubled (95 percent growth) from 2000- 2005, with 31 percent growth coming in 2005 alone. When given a choice between a gasoline or diesel engine, consumers purchased the diesel engine option almost half the time (45 percent) in 2005.

"In this era of sky-high gasoline prices, Americans are increasingly looking to diesel as a readily available solution to help alleviate their pain at the pump," said Allen Schaeffer, DTF's executive director. "Gasoline hybrid's and flexible-fueled ethanol vehicles aren't the only fuel efficient choices consumers have today."

Most analysts expect the diesel trend to continue due in part to rising fuel prices and the desire to improve U.S. vehicle efficiency. Researchers at J.D. Power and Associates predict that diesel sales will approximately triple in the next 10 years, accounting for more than 10 percent of U.S. vehicle sales by 2015 -- up from 3.6 percent in 2005.

Earlier this week, President Bush proposed extending federal tax credits for the purchase of fuel-efficient clean diesel vehicles. In a speech to the Renewable Fuels Association on Tuesday, he said that part of a good plan "to confront high gasoline prices is to promote greater fuel efficiency. Clean diesel vehicles take advantage of advances in diesel technology to run on 30 percent less fuel than gasoline vehicles do ... so here's an idea that can get more of these vehicles on the road, and that is to have Congress make all hybrid and clean diesel vehicles sold this year eligible for federal tax credits. We want to encourage people to make wise choices when it comes to the automobiles they drive."

It's no surprise that clean diesel's are gaining so much momentum. Consider the facts:

  * Diesel vehicles are much more fuel efficient, typically getting 20 to 40
    percent more miles to the gallon than a comparable gasoline car. The
    federal government's 2005 Fuel Economy Guide shows that four of the top
    10 most fuel-efficient vehicles are diesel powered.

  * Diesel could help reduce America's addiction to oil. According to
    officials at the U.S. Environmental Protection Agency, America could
    save up to 1.4 million barrels of oil per day, an amount equivalent to
    the oil we currently import from Saudi Arabia, if one-third of U.S.
    cars, pickups and SUVs were diesel-powered.

  * Diesels provide superior power and performance, an important feature for
    American drivers who want to save money at the pump without sacrificing
    their driving experience.

  * Diesel drivers have the option of filling their tanks with blends of
    biodiesel, a domestically produced, renewable fuel that reduces U.S. oil
    dependence and contributes to our own economy.

"Those that haven't experienced the new generation of diesels are in for an awakening," concluded Schaeffer. "These cars are clean, quiet and very performance oriented -- they're fun to drive while delivering 20 to 40 percent better real-world fuel economy than their gasoline counterparts."

For more information, including complete data from R.L. Polk & Co. and a list of diesel vehicles currently available for sale in the U.S., visit http://www.dieselforum.org/.

The Diesel Technology Forum is a non-profit organization dedicated to promoting clean diesel technologies. Forum members include engine and vehicle manufacturers, diesel fuel refiners, and manufacturers of emissions control devices. For more information about the Forum, visit our web site at http://www.dieselforum.org/.

R.L. Polk & Co. is the premier provider of automotive information and marketing solutions to the automotive world and its related industries- automotive and commercial vehicle manufacturers and dealers, automotive aftermarket companies, insurance companies, finance companies, media companies, advertising agencies, consulting organizations, government agencies and market research firms. http://usa.polk.com/default.htm