BMW tackles dislike of diesels in U.S
02-22-10, 01:02 AM
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BMW tackles dislike of diesels in U.S
BMW tackles dislike of diesels in U.S.
By JENNY MUNRO - The Greenville News
http://www.thestate.com/2010/02/22/1...f-diesels.html
GREENVILLE - Americans have long memories of unhappy experiences with diesel-fueled vehicles, but BMW Group decided several years ago to challenge the U.S. market's dislike of diesels.
Until recently, most Americans thought of black smoke, lack of pep and intolerance of cold temperatures when - or if - they thought of diesel vehicles.
"We really have to forget that," said David Bodde, a Clemson University economist with expertise in energy. "The past experience was a bummer," primarily because the diesel engine of the 1970s was a gasoline engine converted to a diesel engine.
"Now we have engines designed to be diesel engines," he said. "In many ways, the diesel engine is the answer to a lot of our short-term problems," such as fuel efficiency, emissions control and reliance on foreign crude oil.
Raymond Newsom, a Greenville businessman, doesn't have to change his mind: He's been buying diesels since his first diesel Mercedes in 1972.
"They're very, very efficient on mileage," he said. "They last so long."
Newsom said he drives his vehicles about 200,000 miles and trades them in because he starts itching for a new car.
He said the engines have improved over the years.
"They've gotten considerably better - quicker, quieter," he said. In addition, it's now no trouble to find diesel at stations. In the early years, he had to search for diesel pumps.
"I swear by diesel," he said, adding that he hasn't bought domestic diesels - just international brands.
BMW, which has been conducting diesel research for 30 years, has come up with a diesel engine that provides high performance and fuel efficiency while being fun to drive, said Heiko von Engel, technical engineer at BMW Manufacturing Co.
The engine currently is in two BMW models - a sedan and a sports activity vehicle. "We are looking at expanding our diesel line," said Jan Ehlen, BMW of North America spokesman. However, no decisions have been made.
The company is counting on fuel efficiency and performance to increase sales of the diesel engines to 10 percent to 15 percent of the sales in the models offered in the near midterm, he said.
"It turns out that America has started to look into diesels," he said. Car analysts have predicted that U.S. diesel sales could make up 10 percent to 15 percent of the market in the next few years.
Bodde agreed the diesel market could easily reach that level over the next few years, but for at least the next 20 years, gasoline will dominate the auto market.
"I think people are going to try diesel, and they'll like it," he said. But "these are big systems. They turn quickly at the margin, but it takes time to convert the fleet."
Stewart Spinks, chairman of Spinx Oil, said he's seeing a growth in his diesel sales although 90 percent of the volume of fuel he sells is gasoline.
"Technology today is on the side of diesel. The next car I buy will be a diesel. It's more efficient. It gets better mileage and better BTUs per gallon. It certainly is just as accessible in Greenville as gasoline" Spinks said.
Bodde agreed that finding diesel fuel is not a problem, although some fear accessibility as the number of diesels growth. Bodde said he owns a diesel vehicle bought in 1985 and he's never had trouble finding fuel.
"Increasingly you can find diesel, and the vast majority is ultra low-sulfur diesel, he said. "It's good stuff. It will work well in hybrid engines."
Spinks said 103 of the 127 outlets he delivers fuel to have diesel pumps. Of his Spinx outlets, 60 of 68 have diesel pumps. And the diesel pumps are on the gasoline islands as well as on truck islands, making the fuel more accessible to motorists.
What attracts U.S. buyers to a diesel vehicle? "It's fuel efficiency. It's amazing performance compared to any of our other 6-cylinder engines," von Engel said.
BMW introduced the X5 xDrive35d and the 335d sedan to the United States in the fourth quarter of 2008, which coincided with a period when diesel fuel spiraled upward, reaching a level of more than $1 higher than gasoline prices. But the time was right - BMW wanted to bring diesel to the market when it could meet the clean-diesel requirements in all 50 states, including California.
Even before the diesel was launched in the U.S. market, interest was high, said Paul Sinanian, section manager of electric/electronics validation at BMW Manufacturing. People were asking when it was coming.
Diesels from other carmakers, including Volkswagen, Mercedes and Audi, also are sold in the United States. Diesel pickup trucks are available from Chevrolet/GMC, Ford and Dodge.
Ford, which has introduced two diesel engines in the past five years to meet EPA requirements, is launching a Ford designed, engineered and built engine in May or June for its 2011 trucks, said Tom Ninan, commercial business manager for D&D Ford in Greer. The engine is designed to improve fuel efficiency and performance, he said.
BMW of North America recently accepted the Ward's 10 Best Engines award for the 3.0 BMW advanced diesel engine at the North American Auto Show in Detroit. The company's sequential twin-turbo inline-6 diesel was recognized for the model year 2010 and for the second consecutive year. To win a place on the 10 Best Engines list, an engine must score highly in measures of horsepower, torque, refinement, technical relevance, and comparative data.
"It's our most powerful engine," von Engel said. The engine produces 265 horsepower at 4,200 rpm and 425 lb-ft of torque between 1,750 and 2,250 rpm - nearly as much torque as produced by the 6.0-liter V12 in the previous generation 760Li. The diesel X5 can go from standing still to 60 mph in 6.9 seconds. It also has an EPA fuel economy rating of 19 miles per gallon in the city and 26 miles per gallon on the highway.
A year ago, "no one could predict for certain how Americans would adopt BMW Diesel in the coming months," Hans Hohenner, general manager of Drivetrain Development for BMW Group, said while accepting the award. "Americans are discovering the magic of new-generation diesels."
"Throughout 2009, the public became more aware of diesel," an awareness that began to show up in sales in the last quarter of the year, said Max Metcalf, BMW Manufacturing spokesman. One in three of the X5s sold in the U.S. market in December was diesel fueled.
BMW wanted to be part of the conversation when the Cash for Clunkers was started last year, but its vehicles were ineligible because of the price cap, Ehlen said. Because the company wanted to draw attention to its fuel-efficient vehicles, BMW introduced an eco-credit of $4,500 for everyone buying diesel vehicles.
When the national program ended, BMW "decided to keep that bonus in place," he said. "This gave us some possibilities to test different price levels." Before the credit was adopted, BMW's prices for diesel vehicles were considered too high by much of the public, he said.
"Now, the price is more or less on par with gasoline engines," he said.
The X5 diesel's list price is $52,175, but the credit brings the price to $47,675. The 335d's list price is $44,825, with a drop to $40,325 with the credit, Ehlen said.
In addition, BMW of North America pushed a program to help dealers obtain a couple of diesel vehicles to use as service loaner vehicles.
"That helped put more people in diesels," he said. "And once a customer or potential customer drives our diesel, they are convinced," he said.
While BMW diesels have been in the U.S. market for a little more than a year, the company has years of experience in producing diesel engines. BMW Manufacturing has been producing diesel X5s for export since 1999. About 67 percent of all BMWs - not just X5s - sold in Europe are diesel-powered, von Engel said. Many of the X5s built at the Greer facility that were exported were diesel powered.
The U.S. and European engines are basically the same, but those destined for the United States have an additional component that injects urea into the exhaust stream, reducing nitric oxide emissions, von Engel said.
A major element in bringing the engines to the U.S. market, he said, was the 2006 EPA requirement that ultra low-sulfur diesel fuel be available in this country. Low-sulfur fuel has 15 parts per million of sulfur in the fuel while earlier diesel, still used in many trucks and older vehicles, contains 50 ppm to 500 ppm, said Sinanian.
"The market is ready for diesels," von Engel said.
As gasoline prices have increased and as awareness of the need for fuel efficiency and cleaner engines grows, diesel becomes a more attractive alternative, he said.
"There's a huge performance increase," he said. BMW's advanced diesel engine has nearly the same torque as a V-8 engine, he said. But "fuel consumption is the other positive," said Sinanian.
Edmunds.com, an online site for automotive consumer information, said most diesel owners enjoy a savings over comparable gasoline models and even some gas-electric hybrids. Another potential consideration for high-mileage drivers is that diesel engines historically have a longer service life than gasoline motors due to their simpler design and more robust construction.
A major difference in the diesels of today and 30 years ago is technology, von Engel said.
Carmakers began using direct-injection engines in the early 1990s. Before then, high pressure was needed to inject diesel fuel into the internal combustion engine chambers.
Also, turbo-chargers have advanced. BMW's diesel engine now has two turbo-chargers to make it more efficient and powerful. The turbo-chargers can work separately or together, giving the vehicle more power at any speed.
By JENNY MUNRO - The Greenville News
http://www.thestate.com/2010/02/22/1...f-diesels.html
GREENVILLE - Americans have long memories of unhappy experiences with diesel-fueled vehicles, but BMW Group decided several years ago to challenge the U.S. market's dislike of diesels.
Until recently, most Americans thought of black smoke, lack of pep and intolerance of cold temperatures when - or if - they thought of diesel vehicles.
"We really have to forget that," said David Bodde, a Clemson University economist with expertise in energy. "The past experience was a bummer," primarily because the diesel engine of the 1970s was a gasoline engine converted to a diesel engine.
"Now we have engines designed to be diesel engines," he said. "In many ways, the diesel engine is the answer to a lot of our short-term problems," such as fuel efficiency, emissions control and reliance on foreign crude oil.
Raymond Newsom, a Greenville businessman, doesn't have to change his mind: He's been buying diesels since his first diesel Mercedes in 1972.
"They're very, very efficient on mileage," he said. "They last so long."
Newsom said he drives his vehicles about 200,000 miles and trades them in because he starts itching for a new car.
He said the engines have improved over the years.
"They've gotten considerably better - quicker, quieter," he said. In addition, it's now no trouble to find diesel at stations. In the early years, he had to search for diesel pumps.
"I swear by diesel," he said, adding that he hasn't bought domestic diesels - just international brands.
BMW, which has been conducting diesel research for 30 years, has come up with a diesel engine that provides high performance and fuel efficiency while being fun to drive, said Heiko von Engel, technical engineer at BMW Manufacturing Co.
The engine currently is in two BMW models - a sedan and a sports activity vehicle. "We are looking at expanding our diesel line," said Jan Ehlen, BMW of North America spokesman. However, no decisions have been made.
The company is counting on fuel efficiency and performance to increase sales of the diesel engines to 10 percent to 15 percent of the sales in the models offered in the near midterm, he said.
"It turns out that America has started to look into diesels," he said. Car analysts have predicted that U.S. diesel sales could make up 10 percent to 15 percent of the market in the next few years.
Bodde agreed the diesel market could easily reach that level over the next few years, but for at least the next 20 years, gasoline will dominate the auto market.
"I think people are going to try diesel, and they'll like it," he said. But "these are big systems. They turn quickly at the margin, but it takes time to convert the fleet."
Stewart Spinks, chairman of Spinx Oil, said he's seeing a growth in his diesel sales although 90 percent of the volume of fuel he sells is gasoline.
"Technology today is on the side of diesel. The next car I buy will be a diesel. It's more efficient. It gets better mileage and better BTUs per gallon. It certainly is just as accessible in Greenville as gasoline" Spinks said.
Bodde agreed that finding diesel fuel is not a problem, although some fear accessibility as the number of diesels growth. Bodde said he owns a diesel vehicle bought in 1985 and he's never had trouble finding fuel.
"Increasingly you can find diesel, and the vast majority is ultra low-sulfur diesel, he said. "It's good stuff. It will work well in hybrid engines."
Spinks said 103 of the 127 outlets he delivers fuel to have diesel pumps. Of his Spinx outlets, 60 of 68 have diesel pumps. And the diesel pumps are on the gasoline islands as well as on truck islands, making the fuel more accessible to motorists.
What attracts U.S. buyers to a diesel vehicle? "It's fuel efficiency. It's amazing performance compared to any of our other 6-cylinder engines," von Engel said.
BMW introduced the X5 xDrive35d and the 335d sedan to the United States in the fourth quarter of 2008, which coincided with a period when diesel fuel spiraled upward, reaching a level of more than $1 higher than gasoline prices. But the time was right - BMW wanted to bring diesel to the market when it could meet the clean-diesel requirements in all 50 states, including California.
Even before the diesel was launched in the U.S. market, interest was high, said Paul Sinanian, section manager of electric/electronics validation at BMW Manufacturing. People were asking when it was coming.
Diesels from other carmakers, including Volkswagen, Mercedes and Audi, also are sold in the United States. Diesel pickup trucks are available from Chevrolet/GMC, Ford and Dodge.
Ford, which has introduced two diesel engines in the past five years to meet EPA requirements, is launching a Ford designed, engineered and built engine in May or June for its 2011 trucks, said Tom Ninan, commercial business manager for D&D Ford in Greer. The engine is designed to improve fuel efficiency and performance, he said.
BMW of North America recently accepted the Ward's 10 Best Engines award for the 3.0 BMW advanced diesel engine at the North American Auto Show in Detroit. The company's sequential twin-turbo inline-6 diesel was recognized for the model year 2010 and for the second consecutive year. To win a place on the 10 Best Engines list, an engine must score highly in measures of horsepower, torque, refinement, technical relevance, and comparative data.
"It's our most powerful engine," von Engel said. The engine produces 265 horsepower at 4,200 rpm and 425 lb-ft of torque between 1,750 and 2,250 rpm - nearly as much torque as produced by the 6.0-liter V12 in the previous generation 760Li. The diesel X5 can go from standing still to 60 mph in 6.9 seconds. It also has an EPA fuel economy rating of 19 miles per gallon in the city and 26 miles per gallon on the highway.
A year ago, "no one could predict for certain how Americans would adopt BMW Diesel in the coming months," Hans Hohenner, general manager of Drivetrain Development for BMW Group, said while accepting the award. "Americans are discovering the magic of new-generation diesels."
"Throughout 2009, the public became more aware of diesel," an awareness that began to show up in sales in the last quarter of the year, said Max Metcalf, BMW Manufacturing spokesman. One in three of the X5s sold in the U.S. market in December was diesel fueled.
BMW wanted to be part of the conversation when the Cash for Clunkers was started last year, but its vehicles were ineligible because of the price cap, Ehlen said. Because the company wanted to draw attention to its fuel-efficient vehicles, BMW introduced an eco-credit of $4,500 for everyone buying diesel vehicles.
When the national program ended, BMW "decided to keep that bonus in place," he said. "This gave us some possibilities to test different price levels." Before the credit was adopted, BMW's prices for diesel vehicles were considered too high by much of the public, he said.
"Now, the price is more or less on par with gasoline engines," he said.
The X5 diesel's list price is $52,175, but the credit brings the price to $47,675. The 335d's list price is $44,825, with a drop to $40,325 with the credit, Ehlen said.
In addition, BMW of North America pushed a program to help dealers obtain a couple of diesel vehicles to use as service loaner vehicles.
"That helped put more people in diesels," he said. "And once a customer or potential customer drives our diesel, they are convinced," he said.
While BMW diesels have been in the U.S. market for a little more than a year, the company has years of experience in producing diesel engines. BMW Manufacturing has been producing diesel X5s for export since 1999. About 67 percent of all BMWs - not just X5s - sold in Europe are diesel-powered, von Engel said. Many of the X5s built at the Greer facility that were exported were diesel powered.
The U.S. and European engines are basically the same, but those destined for the United States have an additional component that injects urea into the exhaust stream, reducing nitric oxide emissions, von Engel said.
A major element in bringing the engines to the U.S. market, he said, was the 2006 EPA requirement that ultra low-sulfur diesel fuel be available in this country. Low-sulfur fuel has 15 parts per million of sulfur in the fuel while earlier diesel, still used in many trucks and older vehicles, contains 50 ppm to 500 ppm, said Sinanian.
"The market is ready for diesels," von Engel said.
As gasoline prices have increased and as awareness of the need for fuel efficiency and cleaner engines grows, diesel becomes a more attractive alternative, he said.
"There's a huge performance increase," he said. BMW's advanced diesel engine has nearly the same torque as a V-8 engine, he said. But "fuel consumption is the other positive," said Sinanian.
Edmunds.com, an online site for automotive consumer information, said most diesel owners enjoy a savings over comparable gasoline models and even some gas-electric hybrids. Another potential consideration for high-mileage drivers is that diesel engines historically have a longer service life than gasoline motors due to their simpler design and more robust construction.
A major difference in the diesels of today and 30 years ago is technology, von Engel said.
Carmakers began using direct-injection engines in the early 1990s. Before then, high pressure was needed to inject diesel fuel into the internal combustion engine chambers.
Also, turbo-chargers have advanced. BMW's diesel engine now has two turbo-chargers to make it more efficient and powerful. The turbo-chargers can work separately or together, giving the vehicle more power at any speed.
02-22-10, 04:37 AM
#2
I'd rather have a diesel than a hybrid and the 335d has a great engine with very good power and MPG.
I do think the $4500 eco-rebate and $900 tax credit really helped sales.Though,without the incentive,sales would have been down.
BMW went back to a single turbo in the new N55 engine.
I do think the $4500 eco-rebate and $900 tax credit really helped sales.Though,without the incentive,sales would have been down.
BMW went back to a single turbo in the new N55 engine.
Last edited by Joeb427; 02-22-10 at 04:43 AM.
02-22-10, 06:08 AM
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BMW makes a fine diesel. The price is just way to high IMO. I think BMW needs to get smart and bring over a 4 cylinder diesel.
The other problem is federal tax credits are not available to anyone earning over XX amount of money every year. I can't remember the number, something like $100k. Thus, the type of person who could afford a BMW would more than likely not get the tax credit. State level is different. I know that anyone buying an alternative fuel vehicle in PA can recieve $500 credit.
Doesn't seem likely. If hybrids only account for 3% currently and they are viewed more favorably than diesels, I don't see how the diesel market could jump that much. I do think it will go up.
The other problem is federal tax credits are not available to anyone earning over XX amount of money every year. I can't remember the number, something like $100k. Thus, the type of person who could afford a BMW would more than likely not get the tax credit. State level is different. I know that anyone buying an alternative fuel vehicle in PA can recieve $500 credit.
Car analysts have predicted that U.S. diesel sales could make up 10 percent to 15 percent of the market in the next few years.
Last edited by SLegacy99; 02-22-10 at 06:12 AM.
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