But not by much. The Ram 1500 gasoline-powered pickup from Fiat Chrysler Automobiles N.V. (FCA) (NYSE: FCAU) has a highway mileage rating of 25 mpg, and the gas-powered Chevy Silverado from General Motors Co. (NYSE: GM) has a fuel economy rating of 24 mpg on the highway.
The mileage champion is the Ram 1500 EcoDiesel, which the EPA rates at 20 mpg in the city, 28 mpg on the highway and 23 mpg combined. As Ford points out, though, the diesel engine costs more — $4,000 according to Ford; $2,850 according to FCA — and diesel fuel is more expensive than gasoline. The head of the Ford design team that build the new F-150 told The Wall Street Journal, “You have the higher acquisition cost and you have the higher fuel cost. There is no payback.” That may be a slight exaggeration, but if there is any payback it will certainly take a long time.
For example, on November 17, the U.S. Energy Information Administration (EIA) reported a national average gasoline price of $2.89 a gallon and a diesel fuel price of $3.66 a gallon. A gallon of low-sulfur diesel fuel has 113% of the energy in a gallon of gasoline, but because of its design a diesel engine may be 30% to 40% more efficient than a gasoline-powered engine.
Because the $0.77 price difference between the two fuels is about 27%, there really is no price advantage today, unless the diesel engine were to be closer to 40% more efficient or there are other improvements (transmissions, weight) that make the entire truck more fuel efficient.
Earlier this month the Ram 1500 EcoDiesel beat the new F-150 to earn the Green Truck of the Year award from Green Car Journal. The EPA mileage rating for the F-150 was not available, and that likely contributed to Ram’s win.
Aside from the environmental benefits of a vehicle that gets better mileage, the main use of mileage ratings is for marketing purposes. In the world of pickup trucks, other heavily promoted specifications are payload and towing capacities. Expect to hear a lot about mileage ratings in the next few months.
For Ford there is a lot at stake. It might not win a lot of new customers with these mileage ratings, but it probably won’t lose any either.
ALSO READ: Ford F-150 Named 2015 Best Buy
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