In Wake Of High Gas Prices, New Reports Indicate Growing Market For Diesel Vehicles

Diesel Vehicle Sales, Fuel Availability on the Rise

WASHINGTON, March 30 -- With gas prices hitting new record highs, consumers nationwide are increasingly turning to diesel-powered vehicles as a high-performance and fuel-efficient alternative to gasoline, according to research released today by the Diesel Technology Forum (DTF). Diesels are 20 to 40 percent more fuel efficient than comparable gasoline- powered engines.

A new analysis of data from R.L. Polk & Company shows that annual registrations of new diesel passenger vehicles in the U.S. -- including cars, trucks and SUVs -- has grown nearly 56 percent during the past five years, from 301,000 diesel vehicles in 2000 to nearly 470,000 diesel registrations in 2004. An increasing number of vehicles offer a choice between gasoline- and diesel-powered engines, and when faced with that choice, nearly 40 percent of consumers have selected the diesel engine option since 2000. For the popular medium-duty truck market -- which includes the Chevrolet Silverado, Dodge Ram, Ford F-Series and GMC Sierra trucks -- nearly 60 percent of consumers chose the diesel option in 2004, rather than the gasoline alternative.

"In this era of sky-high gas prices, Americans are looking to diesel as a readily available solution to help alleviate their pain at the pump," said Allen Schaeffer, DTF's executive director. "More and more drivers are discovering diesel is a fuel-sipping alternative that doesn't require sacrificing either power or performance."

Concurrent with rising sales of diesel vehicles has been a greater availability of diesel fuel at local filling stations. According to another new report commissioned by DTF, "Consumer Accessibility to On-Highway Diesel Fuel," diesel is now available at nearly half (42 percent) of fueling service stations across the country. This level represents a 12 percent increase from the U.S. Environmental Protection Agency's (EPA) last report in 2000 that diesel was available at only 30 percent of U.S. service stations. Most drivers now recognize this greater accessibility to diesel fuel; according to a recent survey of 1,000 registered voters, nearly 70 percent of Americans agree that diesel is readily available at their local service stations.

"Consumers no longer see access to diesel fuel as a barrier to owning and driving a diesel vehicle," added Schaeffer. "As more consumers become aware of the increasing availability and energy-saving benefits of these vehicles, we expect that the popularity of light-duty diesels in the U.S. will continue to grow."

  Consider the benefits:

   * Diesel vehicles are much more fuel efficient, typically getting 20 to
     40 percent more miles to the gallon than a comparable gasoline car. The
     2005 EPA and U.S. Department of Energy (DOE) Fuel Economy Guide shows
     that four of the top ten most fuel-efficient vehicles are diesel
     powered (the Volkswagen Golf, Jetta, New Beetle and Passat).

   * Diesel's efficiency helps reduce dependence on foreign oil. According
     to DOE, a 30 percent market penetration of diesel vehicles by 2020
     would reduce U.S. net crude oil imports by 350,000 barrels per day.

   * Diesels burn less fuel, so they emit lower levels of carbon dioxide --
     a greenhouse gas -- compared to gasoline.

   * Diesel cars provide superior power and performance, an important
     feature for American drivers.

Because of their cost effectiveness and performance benefits, diesel vehicles account for nearly half (44 percent) of all new vehicle sales in Europe, according to Association Auxiliarie de l'Automobile. In the luxury and premium sectors, diesels comprise over 70 percent of all new sales.

American consumers now have more diesel choices than ever before. Four new light-duty diesel models were introduced in the U.S. in 2004 (the Jeep Liberty CRD, Mercedes E-320 CDI and the Volkswagen Passat and Touareg), making modern diesel technology now available in four key market segments -- from economy cars and family station wagons to luxury sedans and SUVs. This is in addition to the continuing popularity of diesel engine options in medium-duty pickup trucks.

Consumers interested in learning more about diesel cars, trucks and SUVs can visit the Forum's web site at http://www.dieselforum.org/. The site features a complete list of the light-duty diesel vehicles available in the U.S., and provides additional information on the environmental, economic and energy conversation benefits of modern clean diesel technology. Visitors can also use the site's nationwide diesel fuel locator to find local service stations carrying diesel.

"Consumer Accessibility to On-Highway Diesel Fuel" was conducted by Hart Downstream Energy Services on behalf of DTF. To view a full copy of the fuel availability study and to access the Polk data on rising diesel vehicle sales, visit http://www.dieselforum.org/.

The Diesel Technology Forum represents manufacturers of engines, fuel and emissions control systems. It brings together the diesel industry, the broad diesel user community, civic and public interest leaders, government regulators, academics, scientists, the petroleum industry and public health researchers to encourage the exchange of information, ideas, scientific findings and points-of-view to current and future uses of diesel power technology. For more information about the Forum, visit our web site at http://www.dieselforum.org/.