Honda rethinks diesels for U.S.
Honda Motor is reconsidering its decision to launching diesel-power vehicles next year in the United States, where diesel fuel has become much more expensive than gasoline.
“Right now we are re-evaluating, due to trends in gasoline and diesel prices, and the price of raw materials we use in the exhaust clean-up system,” Honda spokesman David Iida said.
Honda’s move appears to be solo. But Honda’s considered a savvy player in the U.S. market, so others might be tempted to rethink U.S. diesels.
Honda has been promising a four-cylinder diesel next year in a sedan from its Acura luxury brand. After that, it said it would sell larger models, probably SUVs and vans, with V6 diesels.
Diesel cars typically retail for at least $1,500 more than similar gasoline models, but they get 20% to 40% better mileage.
The average price of diesel fuel, though, is running 40% to 50% more than average gasoline prices, according to data from the Oil Price Information Service. That wipes out cost savings from the diesel’s improved mileage.
Rival Nissan says it still plans to sell a V6 diesel in the premium Maxima sedan in the United States in 2010.