"The 65 MPG Ford the U.S. Can't Have" - Congress needs to CHANGE anomalies like this, NOW! [View All]

[Turborama]

The 65 mpg Ford the U.S. Can't Have

Ford's Fiesta ECOnetic gets an astonishing 65 mpg, but the carmaker can't afford to sell it in the U.S.

The ECOnetic will go on sale in Europe in November

By David Kiley
September 15, 2008

If ever there was a car made for the times, this would seem to be it: a sporty subcompact that seats five, offers a navigation system, and gets a whopping 65 miles to the gallon. Oh yes, and the car is made by Ford Motor (F), known widely for lumbering gas hogs.

Ford's 2009 Fiesta ECOnetic goes on sale in November. But here's the catch: Despite the car's potential to transform Ford's image and help it compete with Toyota Motor (TM) and Honda Motor (HMC) in its home market, the company will sell the little fuel sipper only in Europe. "We know it's an awesome vehicle," says Ford America President Mark Fields. "But there are business reasons why we can't sell it in the U.S." The main one: The Fiesta ECOnetic runs on diesel.

Automakers such as Volkswagen (VLKAY) and Mercedes-Benz (DAI) have predicted for years that a technology called "clean diesel" would overcome many Americans' antipathy to a fuel still often thought of as the smelly stuff that powers tractor trailers. Diesel vehicles now hitting the market with pollution-fighting technology are as clean or cleaner than gasoline and at least 30% more fuel-efficient.

Yet while half of all cars sold in Europe last year ran on diesel, the U.S. market remains relatively unfriendly to the fuel. Taxes aimed at commercial trucks mean diesel costs anywhere from 40 cents to $1 more per gallon than gasoline. Add to this the success of the Toyota Prius, and you can see why only 3% of cars in the U.S. use diesel. "Americans see hybrids as the darling," says Global Insight auto analyst Philip Gott, "and diesel as old-tech."

Read More:
http://www.businessweek.com/magazine/content/08_37/b4099060491065.htm?chan=rss_topStories_ssi_5

Here's what Obama had to say about it:

Obama tells auto execs what part they played in their own downfall

Obama's May 2007 Address to the Detroit Economic Club

“Whenever an attempt was made to raise our fuel efficiency standards the auto companies would lobby against it, spending millions to prevent the very reform that could have saved their industry. Even as they shed thousands of jobs and billions in profits over the last few years, they’ve continued to reward failure, in some cases with lucrative bonuses for CEOs.”
http://www.youtube.com/watch?v=j1nno1El3-g

Chrysler are in fact already making 35 MPG cars and SUVs in America, but American citizens can't buy them either. GM are making some great cars outside of the US too. To find out more, check out my journal... http://journals.democraticunderground.com/Turborama