VW tests China diesel waters

Diesel Fuel News, April 23, 2003

Hart Downstream Energy Group 's Singapore correspondent Keith Ho recently interviewed Volkswagen-China 's senior manager of public relations, Michael Wilkes, about prospects for diesel vehicles in China. Highlights:

Question: How many diesel vehicles have VW-China produced to retail in China to date? How does it compare to your gasoline vehicle production?

Wilkes: VW is the only company in China currently producing a diesel passenger car. We started only last year (1 ,000 diesel cars produced). We test the market, do promotions, and are in negotiations with taxi companies.

Question: Which VW facility in China manufactures diesel passenger vehicles?

Wilkes. The plant in Changehun (FAW) is producing the Jetta SDI. (Unlike VW's "TDI ," this diesel car lacks a turbo).

Question: What are VW-China' s future plans in terms of diesel vehicles?

Wilkes: We are willing to produce more diesel passenger cars, if the acceptance in the market grows. We are ready to offer modern TDI engines, depending on improved quality of Chinese diesel fuel. Talks with experts and decision makers from the petroleum industry and relevant government offices are under way.

(Meantime, an analysis by International Fuel Quality Center - a Hart Downstream Energy Group unit - foresees China cutting highway diesel sulfur levels to 500-ppm by as early as mid-2004, compared to the 2,000-ppm sulfur specification for today's highway and non-road diesels. Shanghai last month adopted Euro-II equivalent emissions standards for diesel and gasoline light vehicles, following in Beijing's footsteps at the beginning of this year.)