From autonews.com

Mercedes-Benz will launch its Bluetec diesel emissions treatment system in Europe next month — a year after the clean technology made its debut in the US.

Mercedes’ clean diesel engines use various engine and exhaust technologies to reduce emissions, particularly nitrogen oxides.

German automaker Volkswagen makes use of similar technology in its turbodiesel cars but plans to jointly market the models in the US appear to have stalled.

The two carmakers launched a US marketing cooperation last November under the Bluetec name, amid great fanfare.

The campaign was an attempt to counter the US popularity of hybrids developed by Japanese carmakers and to improve Americans’ perception of diesels as dirty and smelly.

“The idea to offer diesels as Bluetec in the US market, avoiding the term diesel, is pure genius,” said automotive analyst Christoph Stuermer of forecaster Global Insight.

But VW appears to be backing away from the Bluetec name.

The CEO of Audi, VW’s premium unit, recently stressed the importance of the group’s TDI designation for its diesels. His comments were seen as an indication that the Bluetec cooperation was over.

“With our TDI we have such a strong asset that the term Bluetec is not going to bring our brand any additional benefits in the long term,” Stadler told Wirtschaftswoche magazine.

“The Bluetec initiative is an initial help in the North American market. But because we see an important future role for diesel in the US then we wanted to introduce our TDI brand there too,” he said.

A Mercedes-Benz spokesman said the company has not received official notice from VW and Audi that the alliance was over.

The Mercedes E300 Bluetec sedan, sold in the US as the E320 Bluetec, will arrive at European dealers in December. Mercedes will take orders for it at September’s IAA in Frankfurt.

A Mercedes spokesman said the car would cost 1,000 euros more than the standard E320 CDI, which sells for 41,350 euros in Germany, less value-added tax.