One of the nation’s largest consumer incentives for energy-efficient cars—a tax credit of $1,800—goes to buyers of a $60,000-plus hulking diesel SUV that gets 17 mpg in the city. The Mercedes GL320 Bluetec and two other so-called “clean diesel” SUVs from Mercedes benefit from the tax credits. Meanwhile, today’s most efficient hybrids—such as the 50-mpg Toyota Prius and the 41-mpg Honda Insight, selling for $22,000 and $19,800 respectively—are not eligible for any federal tax incentives.
Hybrid and electric cars stole the limelight at the opening of the 2009 Detroit Auto Show, running January 17 to 25. But don’t believe for a second that petroleum-powered cars are dead. German carmakers are continuing their push for clean diesel, another technology competing for green car buyers.
Mercedes Benz announced plans for a new four-cylinder diesel engine for the U.S. market. No timeline yet.