Coming Attractions -- German Diesels
Over the next eighteen months, we will finally get clean diesel, German technology, and whopping torque-monster diesel engines in California. It's been 20 years since BMW last had a diesel in the US market. And it's been 10 years since Mercedes last sold a legal diesel in California. Even US diesel leader, VW, doesn't have a diesel (TDI) for the 2007 model year anywhere in the US.
First up this fall is the long-awaited return of a Mercedes-Benz diesel power to the California market. The last legal diesel sold here was a 1995 E300 D. I had one of those cars. It 
was the last model year of the 2-generations past E-Class and it was the last Mercedes E-Class engineered by engineers, not the Jürgen Schrempp cost accountants. It had an in-line 3 liter diesel engine, a 25 gallon fuel tank and it got a real-world 22 mpg in the city and about 37 mpg on the highway. It didn't have a turbocharger and it wasn't fast; however, it had the unstoppable deliberate forward momentum of a battleship. This car felt like it was carved out of a solid chunk of steel. Ah, I miss the "old days" at Mercedes-Benz.
Mercedes-Benz will bring the 2008 E320 BLUETEC to us as a 50-state legal diesel. We are told that it will carry a $1,000 premium over the base price of the gas-driven E350. I wouldn't be surprised if there was already a waiting list of customers. The 2007 E320 BLUETEC gets EPA estimated fuel economy of 26 city 35 highway. The 2008 model should achieve similar economy. It only has a 21 gallon gas tank and the 3 liter engine is V-shaped, not inline; but Mercedes is making a sincere effort to return to the past glory days when they really made the best engineered cars in the world.
Mercedes will also put the same diesel engine in its GL, ML and R-Class trucks. But in the heavy trucks, fuel economy and performance suffers. But the diesel powertrain still offers customers significant increases in torque and fuel economy over their gasoline counterparts.
I've heard rumors that Mercedes might give the US market an S-Class diesel for the first time in decades. But right now, there is no official word from Mercedes on its diesel plans for other passenger cars.
In a quieter move, Mercedes arch-rival BMW is bringing its excellent inline 3 liter turbo-diesel engine to the US in mid-2008, probably as a 2009 model, to power the X5. Right now, BMW isn't talking about putting the diesel engine into one of its US passenger cars, but if the engine in the X5 meets 50-state emissions regulations, it's likely that the excellent, powerful and economical 3 liter engine will make it into the 3- and 5-Series cars.
European car enthusiasts have long waxed lyrical about the virtues of the BMW 330d and the new 335d. These would be hot cars if BMW decided to make these models available in California. A clean diesel BMW would be my choice -- by far -- over any gas-electric hybrid refrigerator from Toyota or Honda.
BMW plans on using urea-based emissions technology, similar to Mercedes BLUETEC to meet 50-state requirements.
The use of the diesel engine for the X5 makes sense. The X5 weighs in at a very portly 5,335 lbs in V8 trim and can barely manage 20 mpg on the highway. The in-line, 3 liter diesel engine with common rail and piezo-injection systems, can crank out a whopping 428 lb-ft of torque, 282 ponies, and a fuel economy of over 30 mpg.
Not to be outdone by rivals Mercedes and BMW, at last year's Paris Auto Show (Sep
tember 2006), Audi showed the world its Q7 SUV flagship with a 6 liter V12 TDI engine. As recently as March 2007, Audi has been hinting that they will bring this monster to the US as a 2008 model sometime either late this year or by the summer of 2008.
This engine is a monster. Forget that Touareg V10 TDI from its parent company VW. This thing cranks out 500 hp and 737 lb-ft torque. It can rocket the Q7 from zero to 60 in 5.5 seconds. Audi uses the most sophisticated and expensive common rail, piezo-injection systems, extensive use of exhaust gas in the turbo-charging system and the engine supposedly meets Euro 5 emissions standards. The V12 could get fuel economy figures in the 20+ mpg range for both city and highway driving. This would be a major boost over the poor economy from the 4.2 liter gas V8 or even the slightly more efficient 3.6 liter V6.
But nowhere does Audi say that it will meet California emissions standards. Audi needs it to be 50-state legal to get the volume necessary to profit from this big, expensive SUV. Audi wants us to think that the Q7 V12 TDI is coming soon. Don't hold your breath. Even with the German-shared BLUETEC clean-diesel system on board, it may not meet California's strict standards.
So what about VW? Volkswagen has been the only manufacturer selling diesel-powered passenger cars in the US for over a decade. VW doesn't have any US TDI models for 2007; however, VW promised a return -- big time -- for 2008. Well, not so fast.
Last year, VW told us that it would have clean diesels for sale in all 50 states in the fall of 2007 as 2008 models. That has been postponed to the first quarter of 2008. VW is introducing the all-new Jetta "SportsWagen". I'll translate the German for you: Jetta wagon. This is th
e car that VW said it wasn't going to bring to the US because the company was planning a new baby Touareg SUV for the US market.
Oh how things change in just a few years. We will get the Tiguan small "crossover" (are you tired of that word yet?) SUV, but not until mid-2008. To pad the Rabbit-Jetta-Golf-GTI offerings in the US, VW will reintroduce the Jetta wagon. At least we will get TDI versions of the Jetta sedan and wagon starting in January 2008. But there is always seems to be some holdback just to piss off customers like me who would like a highly-efficient clean diesel passenger car. We only get the base GL version of these cars -- at first. We have to wait almost a year to get the nicely-equipped GLI version.
I think this is a product planning mistake. I sense a palpable hunger for highly efficient clean diesel cars here in LA. I also believe that people are willing to pay a premium price for a nicely-equipped, near-luxury daily driver -- not just a bare-bones oil burner. I follow a small used car company in Northern California (AudiOutlet.net [http://www.audioutlet.net/index.cfm]) that buys used VW TDI models from the "other" 45 states where they were legally sold new and then resells them here in California. They only buy the loaded GLI models, preferably with the Package 2 that includes DVD navigation, leather power sports seats, rain sensing wipers and other niceties. They seem to sell these cars for as much as the original MSRP to customers hungry for these super-efficient diesels.
Gasoline prices are nearing $4/gallon here in LA. I've already seen some premium unleaded over the $3.99 9/10ths line. Until just a few months ago, diesel was selling for more than premium gasoline -- near $4/gallon itself! Now, for no explained reason, the new ultra-low sulfur diesel fuel is cheaper than regular unleaded. Who knows when the fictional manipulation of the price of diesel fuel will change; but I'd bet that the pricing will magically change as soon as Mercedes begins selling the E320 BLUETEC here this fall.
VW dealers would kill to have the Tiguan in their showrooms sooner than later. The Jet
ta wagon is nice; but around here, smaller "crossover" SUVs are gaining sales momentum.
The Jetta wagon never sold that well when there was a Golf mk IV variant in the marketplace a couple years ago. The new SportsWagen is, unfortunately, pretty predictable and dull. I like wagons and have owned wagons. However, in LA, the fresh look of the Tiguan will easily outsell the Jetta wagon. Besides, people are tired of the larger gas-guzzling Touareg. Why not try the smaller, cuter and slightly more fuel efficient Tiguan?
But what about a Tiguan TDI? Ah, no such luck at launch. The US market will have to wait until 2009 for a high-mileage Tiguan TDI. That's too bad for us and too bad for VW's US dealer network. In lieu of cars customers want, US dealers will get the all-new "Project M" Chrysler-based minivan and the uber-expensive Passat 4-door coupe. Project M won't get Chrysler's Stow-n-Go seating, so what will VW get? I predict that M will fail. And as for a Passat coupe with luxury pricing to go with it, I doubt that dealers are slobbering for a more expensive Passat as the bitter taste of the $65k plus Phaeton lingers.
The Germans have some great diesel technology. From common rail and peizo injection systems to BLUETEC to variable-geometry turbo veins that greatly reduce turbo lag, there is a lot to offer the US market hungry for significantly better fuel economy in a $4/gallon marketplace. It's also nice to have a high-mileage alternative to the deadly boring hybrid refrigerators from Toyota, Honda and now Nissan. Having owned a well-engineered Mercedes diesel, I know there are other aspects to luxury than rear drive, a cushy ride and automatic climate control. It's really luxurious to have a 700 mile cruising range (fewer visits to a filling station) and more cash in your pocket! Given German driving dynamics, I'd take a modern clean diesel engine with BMW, Mercedes, Audi or VW engineering any day of the week over some Japanese refrigerator. To me, the sound and feel of a mechanical engine is uplifting and satisfying compared to the silence of an electric motor.
