A press release from Strategy Analytics Inc, my favorite phrase in it is “better-than-hybrids highway fuel economy”. I’m glad people are starting to fully realize hybrids aren’t living up to the hype, and that people are seeing diesel as a profit-making strategy.

BOSTON–(BUSINESS WIRE)–The Strategy Analytics Automotive Electronics Service report, “Diesel Challenges Hybrids in the US,” shows upside potential for new diesel technologies allied with the availability of ultra-low sulfur diesel fuel in generating increased light-duty diesel vehicle sales across the US.

Currently five states, led by California, prevent the widespread sale of diesel cars by targeting the outflow of nitrogen oxide (NOx) and requiring similar emissions standards for gasoline and diesel. However two OEM solutions have already been developed to overcome this challenge, with the potential to expand the available market to diesel cars and light trucks in all 50 US states:

• DaimlerChrysler has developed “BlueTec”, a system that injects an “AdBlue” ammonia solution into the exhaust, converting harmful NOx into harmless nitrogen.
• Honda has introduced a dual-layer catalytic converter, which in certain situations modifies the fuel mixture to generate its own ammonia and converts the harmful NOx into harmless nitrogen. Honda is considering launching this technology with the 2009 Honda Accord.

Diesel cars are extremely popular with European consumers wanting good fuel economy and there’s increasing interest in the US against a background of concerns over rising fuel prices and imported oil dependency. Strategy Analytics predicts that once the latest reduced emission diesels have been approved in the remaining five states, which account for 37% of US hybrid vehicle market, diesel will challenge hybrid vehicles for the more cost conscious “green” consumers.

Kevin Mak, Automotive Industry Analyst at Strategy Analytics, states, “Thanks to further diesel emissions reduction and better-than-hybrid highway fuel economy additional available diesel models, and the likelihood of further gasoline price increases, US sales of light-duty diesel vehicles could surpass those of hybrid vehicles.”

“The latest generation turbo diesel powertrains provide a more cost-effective solution than hybrids for OEMs wanting to offer improved fuel economy while meeting ongoing consumer demand for vehicle size and performance,” adds Chris Webber, VP, Global Automotive Practice.

For the chart, “Diesel Penetration - North American and European light vehicle production,” see www.strategyanalytics.com/press/PR00413.htm

About Strategy Analytics

Strategy Analytics, Inc focuses on market opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless and Intelligent Systems Implementation Strategies. www.strategyanalytics.com