Quote:
Originally Posted by 68fastback
I think it's more a problem of gas is 3.69 and diesel is 4.55 and the EcoBoost 4-banger is much cheaper to produce and makes up most of that cost spread. Also diesel has a highly fixed production base and more demand will just drive the price out of sight. Prior to diesel pick-ups and some cars in the US diesel was considerably cheaper than gas and it was predicted then that deman would drive price up (which it did).
On the other hand I think there is a market for small diesels that didn't exist when folks changed cars ever couple of years, but realize that Mark Fields doesn't pull the stats out of his @$$ -- you can bet there's a lot of market analysis behind that decision ...it could also be a way to delay expectations until it's more financially worthwhile to respond.
I don't think it's plant space that's the problem -- space is cheap right now. It's all the build-specific fit-up that goes into the plant that's really expensive. Would the US market embrace a $30K Fiesta (or a $35K Focus as they do in Europe)? Dunno, but I'd rather see an alloy EcoBoost I-4 Verve or Focus than a diesel -- not because there's anything wrong with the diesel (besides maybe weight) since they offer good mileage, are [fnally] clean, and make great trorque, but because I think the economics simply aren't there at the bottom of the model food-chain in the US market given price points, fuel costs and competing technologies at this point in time.
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From a consumers stand point look at it from a cost per mile
gas = $3.69/gallon
best fuel economy std. they are shooting for by 2012 is 35 mpg
35mpg times 20 gallons = 700 mile range
20 gallon fuel tank @ $3.69 gallon = $73.80
$73.80 divided by 700 mile range = 0.105 cents (cost per mile)
diesel = $4.55/gallon
Ford Fiesta (diesel) fuel Economy is 65mpg
65mpg times 20 gallons = 1,300 mile range
20 gallon fuel tank @ $4.55 gallon = $91
$91 divided by 1,300 mile range = 0.07 cents (cost per mile)
That's a (3 1/2) cents per mile saving. If you drive 20,000 miles a year that = $700 less per year you spend for fuel & we use less barrels of oil driving demand down more because less gasoline needs to be made (which takes a lot more refining then diesel does) if you use Bio-fuel in the lower & warmer states it cost even less & oil companies are not need as much.