Diesels already match the much beloved two-mode gas-electric hybrid on the highway -- mile for mile -- but here in America they remain the Rodney Dangerfield of powertrains: They get no respect.

 

Although diesels are up to 30 percent more efficient than their gasoline equivalents, U.S. carmakers have relegated diesel engines to big trucks. And U.S. consumers have placed only hybrids on the pedestal of environmentalism.

 

Diesels make sense when you buy them, and they make extra cents when you sell them.

 

Consider this: A new 2006 Volkswagen Jetta TDI cost about $22,000. Two years later, the same vehicle sells for nearly the same price, according to Kelley Blue Book.

 

During that same time frame, a similar gas-powered Jetta has already lost nearly 30 percent of its value. In fact, every diesel car sold in the past five years still fetches a significantly higher resale price than its gasoline counterpart.

 

"What we're seeing now are the small diesel fanatics going after the few diesels out there," said Jack Nerad, Kelley Blue Book's market analyst. "There's no substitute for a diesel."

 

And until carmakers begin to provide more diesel models to American consumers, the demand for used diesels will continue to outweigh the supply, experts say.

 

Gas-powered vehicles aren't expected to hold their value as well as their diesel counterparts, even as the U.S. auto industry begins to embrace diesel, says Ed Kim, an industry analyst with AutoPacific Inc., an automotive market research and consulting firm.

 

"For the next couple of years, you're going to see diesel vehicles keep their value much better than their gasoline cars," Kim said.

Europeans embrace diesels

 

Some consumers, desperate for high mileage and solid performance, are starting to consider diesels as a viable alternative.

 

Just ask Joe Shannon, a VW salesman at Melton Motors in Southgate who holds up a full page of potential customers when asked if people are interested.

 

"All 33 of these people have told me to call them when the diesels arrive here in August," he said. "One guy even put down a deposit. Over the past three years, we've seen an incredible surge in interest."

 

VW is one of three companies planning to introduce a diesel car this year. Honda Motor Co., through its high-end Acura brand, and BMW will have diesel vehicles in the U.S. as well.

 

At the same time, Ford Motor Co. and General Motors Corp. continue talking about the small V-8 diesels they intend to put in trucks. Of the Detroit-based carmakers, only Chrysler LLC offers a six-cylinder diesel -- in the Jeep Grand Cherokee.

 

More European and Asian automakers plan on bringing diesel cars and trucks to the American market by 2010.

 

It makes sense for European automakers to offer some of the first set of diesel cars here. More than half of the cars sold in Europe are diesels. GM, Chrysler and Ford sell diesel cars there; they just don't sell them here.

 

Last week, Chrysler bragged on its media Web site how a European couple drove a diesel Jeep Compass and Patriot through six countries on one tank of fuel. I would write the same story, driving them to Chicago and back on a single tank, if any diesels were around.

Diesel market will grow

 

In fairness, diesels operate in a much different climate in Europe than in the United States. Diesel fuel there is cheaper than regular gas and California is not part of the Iberian Peninsula. Tough emission standards made it nearly impossible to sell diesel cars here the past few years, though many carmakers have caught up to the regulations.

 

Detroit's automakers say they're not producing diesel cars because there isn't a market for them. Diesels only make up 3.2 percent of the U.S. light vehicle market.

 

It's the "chicken and egg syndrome; there's none in the market, so there isn't a market for them," said Casey Selecman, a powertrain analyst at the forecasting firm CSM Worldwide

 

Nonetheless, everyone expects the diesel market to grow. J.D. Power and Associates told The Detroit News the diesel market could double to 1.2 million vehicles by 2012.

 

But Detroit seems to be reacting slowly to the growing market. Are things secretly going so well no one can use a car that can post 50 miles per gallon highway numbers or am I the only person reading monthly sales reports?

 

Detroit will arrive to the party late, proving once again that for every inaction there is an equal and opposite market reaction. European and Japanese car companies will import their diesels and steal more of Detroit's market share.

 

"Honda bringing a diesel through its Acura brand is going to do a lot to legitimize them," Kim said. "They're a company known as environmentally friendly, and it could help diesels get over their very negative perception."

 

That's a big hurdle to leap, Nerad said. Consumers still aren't sold on the diesel option. The pumps are dirty, the fuel is not available at every filling station and the fuel costs more.

 

"Most people scratch their head when they see the high diesel prices," Nerad said. "Then they say, 'This doesn't make any sense for me.'"

 

But the tide is changing. Diesels provide excellent mileage, can pass emission requirements and according to resale values, they even make a wise investment.

From: auto viewpoint/news