BILL VISNIC

 Ward's Auto World, Sep 1, 2001

 When you're hurtling down that autobahn at 130 mph (208 km/h), there's not much
 time to ponder the intricacies of automotive propulsion. You just know you're
hauling
 and that concentration is advisable.

 But in the Volkswagen AG Golf GTI TDI 150, you're compelled to divert your
attention from the road long enough to smile at this car's terrible little
secret: It's
 powered by a diesel.

 A high-performance diesel.

 It's this simple: The 4-cyl. Golf TDI 150 blows away a lot of sporting cars,
propelled by the most satisfying aspect of engine performance ? torque. More
torque ?
 231 lb.-ft. (313 Nm), to be exact ? than is available from high-line V-6s from
BMW AG or Jaguar. Diesels have torque in spades.

 Or put it like this: If the inevitable goal of the future is increased
efficiency, which way would you rather have 40 mpg (5.9 L/100 km)? In a
spaciously packaged 4-cyl.
 diesel-powered sedan that goes from 0-to-62 mph (100-km/h) in 8.5 seconds and
has the sort of torque output that V-8s are hard-pressed to equal, or in a
 hybrid-electrical-vehicle (HEV) that tops out at 90 mph (144 km/h), grazes its
way to 60 mph (96 km/h) in around 13 seconds and can barely torque its way off
the
 assembly line, much less haul a couple of Jet-skis?

 No wonder, then, that in fuel-economy conscious Europe, nobody sees much need
for expensive, complex ? and underper-forming ? HEVs. New-age diesels like
 VW's amazing TDI 150 are rewriting the rules of engagement. Diesel power
stormed from a modest 14% of European new-car sales in 1990 to 33% last year.
And
 they're expected to grab 50% market share by 2010. That's all thanks to
fiendishly effective new-technology improvements to the diesel.

 Contrast this with the typical American's freshest diesel memory: the 1978
Oldsmobile Delta 88 Royale. Its diesel ? the first-ever passenger vehicle V-8
diesel, a
 hastily and unconvincingly ?dieselized? version of GM's longstanding 350-cubic
inch gasoline engine ? developed just 125 hp from its gargantuan 5.7L of
displacement.
 VW's bombastic 1.9L TDI 150 makes 25 hp more than the much-maligned late-'70s
GM diesel that was exactly three times the TDI's size.

 Forget performance: some of those GM diesel cars are still huffing to get to 60
 mph. What about fuel economy? In the '70s, diesels didn't exactly put GM on the
 Friends of the Earth list: in the 4,000-lb. (1,810-kg) Delta 88, the diesel
managed a piddling 21 mpg (11.2L/100 km). In the 3,000-lb. (1,360-kg) Golf, the
TDI earns a
 combined 53 mpg (4.4L/100 km).

 That should tell you something about how far diesels have advanced,
technically, in the last two decades. That also should tell you something about
the difficulty of
 changing perceptions of the diesel for the typical U.S. customer, who for all
intents and purposes hasn't been exposed to a passenger-vehicle diesel for the
last two
 decades ? and the diesels he or she does see are in commercial trucks that, as
they struggle to accelerate, leave that black-particle mushroom cloud to descend
 on his
 windshield.

 Europe's breakneck embrace of new-technology diesels has caused a schism
between the U.S. and European product plans ? and left the U.S. automakers
 flatfooted in fulfilling the explosive European demand.

 More vexing still, new-age diesels would at once appear to be a blessing for
the U.S., where intensifying environmental and energy supply pressures are
causing
 political and economic tension for industry and consumers alike. But
conflicting fiscal interests, negative consumer perceptions and environmental
regulations have
 entwined in a Gordian knot strangling diesel's prospects for meaningful U.S.
penetration.

 General Motors Corp, for one, appears ready for a fight. Perhaps still smarting
 from its disastrously costly effort ($350 million that GM put into the EV1
program) to
 meet one-time California zero-emissions vehicle (ZEV) regulations, GM is openly
 promoting its activities with the Diesel Technology Forum, a surprisingly
 straight-talking coalition of diesel-promoting industrial, technical and market
 interests. In an outstanding report (one that, in all honesty, could have
served as the
 template for this story), issued just as WAW went to press, the Forum expertly
summarizes the current state of diesel affairs.

 The highly readable ?Demand for Diesels: The European Experience ? Harnessing
Diesel Innovation for Passenger Vehicle Fuel Efficiency and Emissions
 Objectives,? (downloadable at www.die-selforum.org) the Forum states:

 ?Even in this age of globalization, the light-duty diesel markets in the United
 States and Europe remain a world apart. European policymakers have recognized
the
 environmental advantages of diesel, and have allowed new diesel vehicles to
prove themselves as efficient, quiet and powerful alternatives. In America,
growth in the
 market share of light-duty diesels would vastly reduce fuel consumption,
foreign oil imports and greenhouse-gas emissions.?

 That's not all. The report concludes: ?Despite these (diesel) advantages, and
despite the regulatory path taken in Europe, American policymakers have created
a
 regulatory structure that greatly impedes the widespread use of diesel
vehicles. Consequently, Americans may be denied the performance, fuel economy
and
 environmental benefits of advanced diesel technology.?

 Although that may not be the makings of a full-blown conspiracy, most interests
 in the auto industry ? in the U.S. and abroad ? are beginning to wonder aloud
if we,
 and the Bush Administration, do indeed have our priorities in order. In one
breath we speak of the need to protect the environment, reduce dependence on
foreign oil
 and cut our energy use in general, yet we embrace regulations that effectively
kibosh the technology that may best serve those conflicting endeavors.

 The bulk of this story, presented in a ?module? form that we hope allows the
reader to focus on the key points, attempts to explain why.

 In researching this story, WAW interviewed dozens of sources, most of whom have
 intimate knowledge of the market. Most, although not all, were anxious to speak
 on
 the record, often with startling candidness. As much as possible, we attempt to
 let their quotes tell the story. Decide for yourself where the ?spin? begins
and ends.

 Most of those interviewed agree on one thing, however: With all things
considered ? including customer-pleasing performance ? if the U.S. ignores
high-technology
 diesels in favor of its current fascination with HEV technology, we probably
aren't backing the right horse.



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