Economics
This Is Not Your Father's Diesel
A slew of high-mileage models destined for the U.S. market could give hybrids serious competition
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For most of the past century, diesel engines have been associated with smoky, smelly trucks and buses. Now there's a surprise: A new generation of diesel-powered passenger cars is delivering punchy performance and emission levels so low they pass muster in all 50 U.S. states. Boasting good fuel efficiency, the new "clean diesels" may well overtake hybrids in the market for eco-cars.
Built mostly by overseas carmakers, improved diesels already account for more than 50% of new-car sales in Europe. North America is the next target. Volkswagen (VLKAY), BMW, Mercedes-Benz (DAI), Honda (HMC), Kia, Mahindra, and others have announced nearly 20 new diesels bound for U.S. showrooms starting this year.