Ford Sees Diesels Capturing A Larger Share Of U.S. Market

Autoparts Report, June 18, 2001

Ford Motor Co.'s new research chief, Gerhard Schmidt, a German engineer Ford recently recruited from BMW AG, said he thinks diesel engines could account for more than 10 percent of vehicle sales in the U.S. over the next decade, provided the industry successfully clears obstacles that have so far limited the spread of diesel engines in the U.S.

Speaking to a group of reporters at Ford's research laboratory, Dr. Schmidt said gasoline-electric hybrid vehicles could see a similar boost in demand. He said hybrids and other alternative-fuel vehicles could grab a 10 percent share of the U.S. market for cars and light trucks.

Ford is scheduled to launch a hybrid version of the Escape sport- utility vehicle in 2003, while Honda Motor Co. says it will add a second gasoline-electric hybrid to its product lineup in the U.S. next year. Currently two hybrids are marketed in the U.S.: the Honda Insight, a two-seater coupe, and Toyota Motor Corp.'s small sedan called the Prius.

Dr. Schmidt, who became Ford's chief of research in April, admitted diesel engines face a tough future in the U.S. Among the issues, he said, are the "bad" public ***** image diesels have in the U.S. market and U.S. regulations that he said were "unfriendly" toward using diesel engines as a solution to improving fuel economy and emissions. "It's hard to judge," he said, but if the industry can resolve such image, regulatory and other issues, there is a "significant chance" that diesel-powered vehicles may account for "more than 10 percent" of annual U.S. demand for cars and light trucks over the next decade.

Other than a limited number of diesel cars Volkswagen AG sells, the American consumer has little choice in diesel-powered cars or light trucks today. Asked how soon Ford will take the plunge to sell diesel-powered passenger cars in the U.S., Dr. Schmidt said he wasn't sure of Ford management's plans yet, but noted that he is personally all for the idea.