Behind The Wheel

LATEST FROM OUR BLOGS

» More

- Don't Dwell on Investment Mistakes; Move on, Like Buffett

MORE HEADLINES

» Markets | Economy | Companies

- Kraft Weighs Higher Cadbury Bid as Rivals Circle

BEHIND THE WHEEL VIDEO

» More

BMW Signed as Olympic Partner

20 Nov 2009

BMW has been chosen as the official automotive partner of the London 2012 Olympic and Paralympics games. Ian Robertson, board member of BMW Group, spoke to CNBC about the sponsorship.

Economic Roundtable 19 Nov 2009
CNBC's Steve Liesman and Larry Lindsey, of the Lindsey Group, share their economic insight.

Assessing Obama's Tour of South Korea

18 Nov 2009

Assessing the joint press conference held by U.S. President Barack Obama and South Korean President Lee Myung-bak, with Frank Lavin, former White House political director, speaking with CNBC's Oriel Morrison.

Safest Vehicles on the Road 18 Nov 2009
The Insurance Institute for Highway Safety released its latest list of safest vehicles, and CNBC's Phil LeBeau has the details.
Insurance Industry's Top Car Safety Picks 18 Nov 2009
The insurance industry's closely watched annual list of safest new vehicles is out, and CNBC's Phil LeBeau has the details.

RSS FEED

» Help

Subscribe to this RSS feed
Stay up to date with Behind The Wheel.

CNBC ON DIGG

Are Diesels Better Than Hybrids?

Published: Wednesday, 8 Jul 2009 | 9:32 AM ET

Text Size

By: Phil LeBeau

Volkswagon Jetta TDI
Source: vw.com
Volkswagon Jetta TDI
I get the e-mails on a pretty regular basis. Almost all of them say the same thing: clean diesel cars are a great alternative for people who want fuel efficiency and a better driving experience so why aren't Americans waking up and buying more diesels?

Invariably, we have an e-mail exchange where I say there are not many diesel models for sale, and many Americans still remember the days when diesel cars were smelly, noisy, and incredibly unimpressive. The diesel lovers respond, "don't be ignorant" about the virtues of the new clean diesel models.
Green Invests Here | See Complete Coverage

Well, for those people (and yes, there are tens of thousands out there) the latest study from Intellichoice is a reason to rejoice.

In its annual cost of ownership study, Intellichoice finds the 5 year savings for the Volkswagen Jetta TDI (versus a standard model Jetta) is greater than the savings you get from a Toyota Prius vs. a standard model Camry.

The full results are below.

Annual Cost of Ownership

2009 Model and Trim	MSRP Premium	5-Yr Cost of Ownership Savings
Volkswagen Jetta TDI	$2,070	$6,210
Toyota Prius (vs. Camry)	$1,805	$4,930
Saturn Aura Green Line	$1,480	$2,185
Mercedes-Benz GL320 BlueTEC	($1,000)	$4,645
Chevy Silverado 1500 Crew Cab 4WD .	$615	$3,821
Ford Escape Hybrid AWD	$4,725	$2,123

Keep in mind Intellichoice factors in more than just what you save at the pump in calculating ownership savings. Also included are other factors like insurance, maintenance, etc.

VW has long been pushing diesel models in the U.S., and in fact, it has sold more than 800,000 in this country. It's now running a marketing campaign promoting clean diesel as the best option for those who want fuel efficiency. While gas prices are not as high as they were last year, the message has a better chance of connecting with buyers than a few years ago when diesel was an option with limited appeal.

2009 NY Auto Show

Top Ten Gas-Sipping Cars

Milestones in the Auto Industry

But can diesel replace hybrids as the most attractive option for those who want a car powered by something other than unleaded gasoline?

I doubt it.

Yes, I know that answer is going to drive diesel fans nuts. But two factors will limit sales of diesels.

First, there are far fewer diesel models than hybrid models. Second, until the cost of diesel becomes substantially lower than unleaded, car buyers will see no incentive to buying diesel of a standard model.

Still, the latest Intellichoice study is reason for optimism among diesel fans.

_____________________________________
Click on Ticker to Track Corporate News:

- Ford Motor [F Loading... () ]