DATE=4/7/02

TYPE=BACKGROUND REPORT

TITLE=AMERICA & THE DIESEL

NUMBER=5-51383

BYLINE=JOHN BIRCHARD

DATELINE=WASHINGTON

INTERNET=YES

CONTENT=

INTRO: Hydrogen-consuming fuel cells may be the power sources for cars of the future, cutting America's dependence on foreign oil. So-called "hybrid" cars with both gasoline engines and electric motors are already on the road, achieving greater fuel economy. But, as V-O-A's John Birchard reports, America's automakers seem to be ignoring another, older alternative.

TEXT: Most Americans think of the diesel, if they think of it at all, as noisy, smelly, smoky and slow. Yes, it is stingy with fuel, around 20-percent more fuel efficient than a comparable gasoline engine, but who wants all those negative qualities?

Richard Truett, engineering reporter for the industry publication Automotive News, says America is missing the boat on diesels. He says the latest generation is different.

/// TRUETT ACT #1 ///

Three things have transformed the diesel: high-pressure, super-precise electronic fuel injection, low sulfur fuel and turbocharging. What that has done is: power is way up, most emissions are way down and diesel engines no longer fit the smoke-belching, smelly, chattering image that most Americans recall from say the 1970's.

/// END ACT ///

The Arab oil embargoes of the 1970's put the squeeze on America's gasoline supply, frightened U-S consumers and prompted some car companies to rush diesel-powered models onto the market in the name of fuel efficiency. Those diesels had all the disadvantages of the old technology plus hasty engineering that resulted in widespread breakdowns and lots of unhappy customers.

In short, Americans' diesel experience was brief, bad and left sour memories.

As a result, diesel-powered cars have almost disappeared from the American marketplace. Volkswagen is the only company left marketing diesels here.

With all their improvements, diesels still produce two pollutants that concern environmentalists. The U-S state of California has this country's worst air pollution and, consequently, the strictest pollution regulations. The California Air Resources Board, known as CARB, sets and enforces those regulations.

CARB spokesman Rich Varenchik talks about the state's bad air.

/// VARENCHIK ACT #1 ///

Diesel is one of the things that contributes to that. Diesel vehicles tend to be high in particulate matter pollution and nitrogen-oxide pollution. Both of these pollutants have serious health consequences.

/// END ACT ///

Mr. Varenchik says new requirements will clamp down hard on diesels.

/// VARENCHIK ACT #2 ///

In new regulations that were passed in November of 1998, that go into effect in 2004, the emissions limits get even more stringent and the automakers basically have told us that it is unlikely they will be able to sell diesel passenger cars at all in California starting in 2004, unless they make some kind of a breakthrough in emissions control.

/// END ACT ///

Richard Truett of Automotive News says CARB's edict has a ripple effect.

/// TRUETT ACT #2 ///

Because California is such a large market, it is the biggest market in the country for new vehicle sales, some automakers are reluctant to invest in diesel technology because they would not be able to sell cars in California. And so, yeah, if there is a "villain", it might be California.

/// END ACT ///

The executive director of engine engineering at General Motors Power Train, Otto Willembockel, is not optimistic that California or the U-S Environmental Protection Agency will ease the way for diesels.

/// WILLEMBOCKEL ACT #1 ///

I think there is also some clear statements from CARB and E-P-A that they have no intention to lower the requirements for diesels.

/// END ACT ///

But reporter Richard Truett sees a slightly brighter picture.

/// TRUETT ACT #3 ///

Most of the industry people who I have spoken with, such as automotive executives, engineers, and the supplier companies believe that it will come. Maybe not in 2004, but perhaps around 2007, that they will be able to come up with the technology that will enable diesels to have the same kind of market penetration here as they do in Europe, that means in passenger cars.

/// END ACT ///

In our next report, we will examine why diesels are so popular in Europe. (SIGNED)

NEB/JJB/RAE