The diesel engine was invented in 1892. The engines consume about 40% less fuel per mile than standard gasoline engines, but are not popular with US drivers because they accelerate more slowly and produce black emissions.
In an effort to move away from fuel-guzzling gasoline powered cars, auto manufacturers have turned to the hybrid. Toyota (TM) has taken the lead in producing and marketing hybrid cars as the US car companies playing catch-up. But, all of these companies may be running in the wrong race.
According to a new study from banking house UBS, a new generation of diesel engines could outsell hybrids in the US by 2012, "selling 1.5m units in the US, compared with 1.2m hybrids", according to the FT.
That may allow some of the Detroit and European car companies to flank Toyota in the game to offer "green" cars. Hybrids are already more expensive that their gas-powered counterparts, so in the price game Toyota is already at a disadvantage.
US car companies produce a large number of diesel products for a number of their pick-ups and Mercedes offers diesel cars in North America now. BMW and DaimlerChrysler plan to introduce "next generation" diesels into the here within the next couple of years.
There would be some irony if the car companies that have been bested by the Japanese, especially Toyota, could increase their sales for low emission cars by using one of the oldest engine technologies in the world.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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