Kevin McCormally: I am Kevin McCormally of Kiplinger's and I am here with Mark Solheim, Automotive Editor of Kiplinger's Personal Finance magazine to talk about Diesels.
Mark, last summer, when gasoline prices book $3 a gallon, we heard lot about Hybrid cars and Ethanol cars but we did not hear much about Diesels. Are not Diesels pretty fuel efficient alternative to gasoline engines?
Mark Solheim: Yes, in fact, they are. A Diesel gets typically 30% better fuel efficiency than a comparable gas engine.
Kevin McCormally: Okay Mark, I know in Europe there are a lot of Diesels around, but it does not seem like we see so many on American roads. What is going on?
Mark Solheim: You do not see a lot here and there are two reasons for that. One, there is a lingering perception from, it goes back to the 80's, when there were a number of Diesels here in the US, that were noisy, clattering; they were -- high maintenance and they often did not start in the winter.
Kevin McCormally: But that has been solved now?
Mark Solheim: Yeah absolutely, there is a new generation of Diesel called Clean Diesel that is quiet and reliable.
Kevin McCormally: What is the other problem with Diesels and American drivers?
Mark Solheim: Well the other problem is that, believe it or not, the US has higher emission standards for Diesels than Europe. So, they are not a lot of Diesels that can meet the standard especially now that new standards are going into effect.
Kevin McCormally: Well how many Diesels are available to American drivers?
Mark Solheim: There are just a handful; in fact, this year, while the car makers retool to meet the stringent new standards. There are a couple from Volkswagen, including the Volkswagen Touareg SUV. And Mercedes is the other big player here. They have three or four models including the popular E320, Sedan, a couple of crossovers and the big GL SUV.
Kevin McCormally: Okay, do we have to pay more to buy a Diesel compared to a gasoline engine?
Mark Solheim: You have to pay a little bit more, but not as much as more you have pay for Hybrid, for example. It is about $1,000 more for a Diesel.
Kevin McCormally: So it is more likely the savings from the diesel is going to overcome the price increase than for a Hybrid.
Mark Solheim: Absolutely, you are going to get your money back quicker than you will for a Hybrid.
Kevin McCormally: And soon are we are going to see more Diesels on the road?
Mark Solheim: I would say 2008 would be the big breakthrough year, once car manufacturers figure out how to meet the new standards.
Kevin McCormally: Okay, thank you very much Mark.
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