At least that’s the hope, because the competitive advantages appear to possibly be mixed with disadvantages as well, such as a starting price higher by $730, and city mpg lower by 3 mpg.

But the Cruze diesel is well equipped at that price, promises more power, highway mileage of 46 vs 42 for the Jetta TDI, and on that note, GM engineer Tessa Baughman says she achieved an 800 and 900 mile run, each on a single tank. She did this, she says, while avoiding other hyper mileage techniques with the only concession to maximizing fuel economy being that she drove 5 mph below the posted limit.

With a fuel tank capacity of 15.6 gallons for the Cruze diesel, this equates to a highway figure of 51.28 and 57.69 mpg respectively.

As a point of comparison, the record set with a manual-transmission 2013 VW Passat TDI rated at 43 mpg highway was an astonishing 84.1 mpg over 1,626 mpg.

However this was set by expert hyper mileage instructors, John and Helen Taylor, and in this case, the boilerplate caveat “your mileage may vary” applies doubly.

The take home message with the Cruze Diesel is it too can substantially beat its highway numbers, so, is it thus possible it can beat its city mpg number and close the gap between it and the VW as well?

The Cruze diesel starts at $ $24,885 plus $810 destination charge. It is available only with automatic transmission. Volkwagen offers a manual for $23,055 plus $795 destination or automatic for $24,155 plus destination charges.

The EPA mileage per gallon estimates for the Cruze Diesel are 27 city, 46 highway, 33 combined. For the Jetta TDI, it’s 32 city, 42 highway, 33 combined.

This said, options can easily make either car overlap each other, and GM says for the starting price, its Cruze Diesel is a comparatively solid value as equipped.

Without a doubt, VW has established a fan base for its Jetta TDI, which leads the small but growing clean diesel car market. The Chevrolet, GM points out, has a track record too, however. It was launched in other markets in 2010, and 33,000 units have been sold so far.

The gas variants of the Cruze furthermore have proven to be a top seller for GM, even usurping once stalwarts such as the Honda Civic.

So, if the Cruze diesel, engineered with help from Germans to give all comers a run for their money is as good as promised, GM does stand to begin eroding VW’s market.

Working against them all is diesel remains more expensive than gasoline, making the premium each vehicle costs over gas equivalents a real exercise in number crunching.

In their favor also, diesels can operate at lower rpms, potentially can last longer for those who keep their cars till the wheels fall off, and their power characteristics are excellent also.

The Cruze is said to offer performance like a V6 with highway mileage only 2 mpg less than the Toyota Prius Liftback, and with potential to match the Prius Liftback’s mileage and be much faster when desired. Of course, The Prius’ 51 mpg city and 50 mpg combined figures solidly trounce the Cruze diesel’s 27 mpg and 33 mpg respectively, but the Toyota is an altogether different technology that lends itself to excellent city figures.

We could go on and on with point and counterpoint, but the addition of a new contender, whether it sells well, or only moderately, can only be seen as a step in the right direction.

Rome was not built in a day, and neither will a changeover be to more fuel-efficient transportation.

The post Cruze Diesel Driven 900 Miles At 57.7 Average MPG appeared first on HybridCars.com.

According to Senior Writer Jesse Snyder, the value is just not there. In a broad overview without naming specific models, he observed in Europe more than half of cars sold are diesel – of the “clean diesel” variety. In the U.S. just 3 percent of the market is diesel and about a quarter of these are clean diesel.

In his view, it is not a question of whether they are really “clean” – with all the emission controls now being used they actually are, he says – and consumer objections about issues like the smell of diesel spilled on one’s hands he dismisses as emotional reasons.

No, the sticking point is money, he says. If one looks at the average higher price paid for a diesel car and the average higher pump price for diesel fuel and compares these numbers in both Germany and the U.S., it looks like diesel is a no brainer in Germany, and a tough sell in the U.S.

Snyder’s example figured $2,000 extra to be paid for a diesel – and this is easily in line if one looked at the MSRP of the top-selling U.S. diesel, the Jetta TDI versus a similar as possible gas-powered Jetta.

Source: Automotive News.

Then, looking at this week’s national average fuel prices, Snyder figured a diesel that gets around 30 percent better fuel mileage would save $840 per year at 10,000 miles annually driven in Germany, compared to $150 per year saved in the U.S.

So, goes the reasoning, if Americans only stand to save $150 per year, it will take them around 13.33 years to just break even on their $2,000 extra spent, or 133,000 miles compared to a breakeven point in Germany at 24,000 miles.

Source: Automotive News.

“This is diesel’s U.S. problem,” said Snyder, “Pump prices are less than half of Germany’s and diesel costs more here, not less.”

And we will agree there is undeniable truth within Snyder’s generalizations. Diesel does cost more in the U.S., not less as it does in Germany.

What was not accounted for is whether a driver traveled more than 10,000 miles per year, or whether the vehicle would be kept for long-term ownership. Diesel engines are known to be durable, often said to be more durable than gas varieties, and are famous for racking up odometer readings well in excess of the estimated 133,000 break-even point.

What’s more, for higher mileage drivers, say, traveling 16,000 miles per year, simply following Snyder’s model, it could be around an 8-year break-even point, and even sooner if miles were higher – or if diesel could be found cheaper, or if the price premium paid was less than $2,000 for a given diesel model and a cross-shopped gas model.

This is still not in the no-brainer category as it is in Germany, but it is not as foolish-looking a value proposition as the ending of Snyder’s commentary suggests, when he says of Americans buying clean diesel cars with a sardonic smile, “But hey, after May of 2026, it’s all gravy.”

Other factors in diesel’s favor are these vehicles are, as Snyder says, cleaner than they’ve been in the past, with multiple and sophisticated controls to scrub particulate matter and smell.

So, just as some environmentally minded people now pay a premium for electrified cars, some may feel justified in doing so for a clean diesel purchase.

There are however those who vehemently disagree diesel engines can be made clean at all, and who actively write against the carcinogenic effects of diesel no matter what emissions controls are in place. More on this topic can be found at clean-diesel.org.

Beyond that debate, turbo diesel engines are known to provide excellent tractability with high torque off the line, and combined with the potential for excellent durability, do present their own unique benefits.

It is true though, there are fewer diesel filling stations in America, and diesel does come at a price penalty, so this does keep many people at bay after a quick look at the scenario that Snyder correctly says does not look as good as it does in Germany.

In sum, we cannot agree with any implication that diesel cars make hardly any sense at all, and for some people they could be the best option. Like other alternative-tech vehicles fighting against an entrenched mentality and paradigm, diesels are a more qualified decision individuals will need to look at more closely to determine whether they really make sense for them.

Automotive News

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Volkswagen has a long history of integrating diesel engines into its lineup and is the leader in bringing modern, clean diesel technology to the U.S. The German automaker currently offers four clean diesel models with sales that total more than all of the other diesel offerings combined. The Jetta TDI (Turbocharged Direct Injection), sedan and SportWagen, is the leading seller, racking up more than 28,000 units through July.

For 2013, the Jetta TDI SportWagen has only minor changes over 2012 models; a leather-wrapped multi-function steering wheel and multi-function display on the S Trim.

Updates for the 2013 sedan TDI build on a series of changes VW began last year that include exterior styling tweaks and new interior appointments. On the outside, the sedan gains chrome grille accents and chrome window trim. Inside now includes power-recline driver and front passenger seats in addition to a leather-wrapped steering wheel, shift knob, and handbrake lever. A new iridium trim enhances the dash and door panels. Later in the model year, the TDI sedan will receive a soft-touch dash.

The top-of-the-line TDI Premium with Navigation trim now includes a six-way power driver seat and new 17-inch aluminum-alloy wheels that differentiates it from the 16-inch standard wheels of other models.

Pricing for the 2013 Jetta TDI sedan starts at $22,990, a $215 increase over the outgoing 2012 model. The SportWagen TDI has a sticker price starting at $25,540, the same as last year. EPA estimated fuel economy for both models is 30 city/42 highway and 34 combined.

Jetta TDI Sedan

The most significant change for the 2011 Jetta TDI sedan was that it received its own platform – it’s no longer a Golf hatchback with a trunk added to the rear end. The car strains the definition of compact, pushing the envelope nearly into the mid-size arena. Its wheelbase grew 2.9 inches, to 104.4 and overall length is increased the same, to 182.2 inches.

By adding nearly three inches to the space that must be negotiated by hips, thighs, knees and toes, VW turned the backseat into adult-ready territory. And the trunk is large enough to handle more gear than any other sedan in the compact class.

The growth was accompanied by a new body-style that continues for the 2013 model year. Tossed was the distinctive wide mouth grille, replaced with a more determined and synchronous face. Rearward of the toned-down proboscis, the look is less Germanic, more generic. While the Jetta is not stirring or striking, it is clean with sharp lines that provide an overall appearance of understated sophistication. It’s a look that outdistances its intended compact car competitors.

The exterior’s contemporary look is carried inside the car, with a driver-focused instrument cluster and uncluttered center stack. When used, switchgear has that solid feeling expected in a German automobile. That said, the cabin is the first place where the bean counters’ influence is noticed – the rich looking, soft-to-the-touch materials of the outgoing model were replaced by shiny, not-so-soft plastic. VW obviously is correcting that.

The inside isn’t the only place where the accounting types had their way with the sixth-generation Jetta. The multi-link rear suspension was replaced with a less expensive torsion-beam design. Those who regularly check the engine’s vital fluids will find the gas struts that hold up the hood are gone, ditto the trunk lid struts, replaced with gooseneck type hinges that intrude into the trunk space.

Jetta SportWagen TDI

The 2013 Jetta SportWagen TDI is basically the same vehicle it’s been for several years, with an underbody structure of the 2005-2010 Jettas. Notwithstanding its own distinct styling, the SportWagen is easily identified as a Jetta family member. The cabin continues with high-quality materials that are noticeably better than the sedan.

Riding on a three-inch-shorter wheelbase, the SportWagen is smaller than the Jetta sedan resulting in a more constricted rear seat area than the sedan. But if you’re buying a wagon you’re looking for cargo room and the wagon boasts 32.8 cubic feet of cargo volume behind the rear seat and 66.9 cubic feet with its rear seat folded. That’s comparable to many crossovers.

There’s a new SportWagen in the works that should show up in fall 2013, and may or may not be named a Jetta SportWagon. It’s expected that there will be shortages of the wagon around the end of the year so, if you like the current edition, buying sooner than later is advised.

For 2013 both the sedan and wagon are equipped standard with remote keyless entry; power windows, locks and outside mirrors; air conditioning; an AM/FM radio with CD player; adjustable front seats; and a tilt and telescopic steering wheel. Most of the usual options are available including a navigation system that includes the new Fender audio system with an SD card slot and iPod integration.

On The Road

Volkswagen provided a Jetta TDI sedan with a six-speed manual transmission for a weeklong evaluation. TDI is a direct injection system where fuel is sprayed directly into each cylinder, rather than into a pre-combustion chamber. A turbocharger and intercooler are also used. Together, these components result in cleaner emissions and better acceleration, the latter due to diesel’s higher-torque characteristics. The 2.0-liter four-cylinder diesel furnishes 140 horsepower and a very healthy 236 pound-feet of torque.

We did three stints with our Jetta TDI to get a reading on fuel economy: We clocked 56 miles on city streets, 241 miles of mostly interstate driving and a fun-filled 137 miles on two-lane back county roads.

During our in-town driving trek I put on my “conservative” driving hat and forced myself to shift gears according to the up-shift arrow on the instrument cluster. Shifting into fourth gear at 30-32 mph, as the arrow directed, was difficult. But apparently the folks at Volkswagen know how one should drive to squeeze out fuel economy because I wrung out 33.8 mpg. (So much for the way EPA arrives at its numbers.)

The following day we topped off fuel two blocks away from Interstate-5 and headed south from Olympia, Washington to Portland, Oregon. On this leg we drove mostly in the right lane and limited speed to between 60 and 65 mph. On the return, far left lane driving seemed more like the natural place for the Jetta and we cruised most of the way at 75-80 mph. We exited where we started and pumped 5.63 gallons of diesel. That’s 42.8 miles per gallon.

Three days later it was time for the turbo to spool up and stay there – and never mind the fuel mileage. There are some marvelous, seldom-used two-lane roads in the South Sound area of Washington State (Olympia/Tacoma). Blacktop surfaces range from silky smooth to almost gravel, with stretches of flat or hilly straight-aways and an abundance of blind corners and off-camber hairpin turns. For most of the 137 miles the transmission was in 3rd or 4th gear, making sure that the 30 to 50 mph posted speeds weren’t exceeded by too much. The 236 pounds-feet of torque produced by 2.0-liter four arrives at 1,750 rpm, proving that you don’t need a large displacement gas engine to have fun. And a 140 horsepower diesel validates that you can have a smile on your face while averaging 32.3 mpg.

The stretched wheelbase improves the Jetta’s ride quality and despite the switch to a torsion-beam rear suspension, the sedan hasn’t lost its taut, Teutonic feel on the road. Steering is tight, well weighted and communicative and the brakes are strong under foot and linear in their response. Cabin noise is at a minimum, even at highway speeds, with less road noise and wind whistle than expected for the class.

On The Green Side

On top of this, super-greenies and energy security hawks can run biodiesel in the Jetta TDI. The Volkswagen warranty only allows a 5 percent blend of biodiesel, but for some, rules are made to be broken – especially when considering the stakes of continuing our national dependence on oil. Biodiesel offers a 100 percent petroleum-free alternative today. (We can’t tell you what to do; let your conscience be your guide.)

These opportunities are only possible because Volkswagen overcame the hurdle of California’s Tier 2, Bin 5 emissions standards. Unlike the Mercedes Bluetec system, which injects urea into the exhaust system to convert NOx to nitrogen and water, the Jetta uses a NOx storage catalyst, which holds the emissions in a reservoir until they can be burned off by the engine. In addition, the common rail fuel injection uses piezoelectric fuel injectors, which permits higher injection pressure than a mechanical system. These clean diesel technologies, developed in partnership with Audi and Mercedes Benz, are a breakthrough in terms of neutralizing emissions and filtering out diesel-related particulates.

Exciting stuff, but when looking at overall low emissions, diesels still can’t compete with hybrids. It’s a big milestone for a diesel to pass California’s Tier 2, Bin 5 standards, but that’s still only about average for a new vehicle. Meanwhile, the squeakiest of squeaky-clean standards is the SULEV, reserved for the Toyota Prius, Honda Civic Hybrid, and a handful of other vehicles including the conventional version of the Volkswagen Jetta.

Diesel-makers will be quick to point out that the difference between Tier 2, Bin 5 and SULEV is negligible—considering that both of these standards are many times cleaner than past generations of cars and trucks. That argument is supported by the federal government’s ruling the Jetta TDI is an “Advanced Lean Burn Technology Motor Vehicle.”

Once upon a time, we all figured exceptional fuel efficiency would be the modern hair shirt—righteous but painful. With the 2013 Jetta TDI, Volkswagen has given lie to dire expectation and delivered a car that not only dispenses that exceptional fuel efficiency, it’s actually a lot of fun to drive.

Prices are manufacturer suggested retail price (MSRP) at time of publication and do not include destination charges, taxes or licensing.

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At 42 mpg highway, the 2012 Jetta TDI is more powerful and offers a 9-mpg fuel economy improvement over the standard 4-cylinder Jetta S, making it a competing consideration for many hybrid shoppers. The success of the Jetta has helped to trigger a slow but steady increase in the number of oil-burning cars sold in the United States. So far this year, diesel sales are up more than 30 percent over 2010—when they were up 40 percent over 2009 levels. According to John Breneman, executive director of the U.S. Coalition for Advanced Diesel Cars, sales of clean diesels will only continue to grow as the Corporate Average Fuel Economy standard in the United States increases toward 54.5 mpg in 2025.

“Emission regulations are now about the same in Europe and the U.S., even California, so it makes it economically feasible for auto makers to develop one product for all those markets,” Breneman told Ward’s Auto last week.

This year, Chevy announced that it will market a diesel version of its popular Cruze compact for 2013 that is expected to achieve fuel economy in the 50-mpg range. In the next two years, Audi says it will offer TDI versions of its A6, A8 and Q5 models. The carmaker already sells its A3 and Q7 here.

So far, the new diesel market seems to be constrained less by consumer demand than the willingness of carmakers to offer the technology. “When given a choice between a diesel- or gas-powered Jetta, 33% of motorists opt for the higher-mileage diesel. But when the supply of diesels is gone, it takes at least six to eight more weeks for the boat to arrive with a fresh supply,” said Breneman. “Ford, Toyota or Honda haven’t got a diesel for the U.S. yet, but get ready for 2013-2014. That’s when we’re going to see a lot more diesels.”

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“American’s have never had so many vehicle fuel and technology choices, ranging from a growing number of hybrid gasoline vehicles to new plug-in electric hybrid vehicles, in addition to clean diesel and conventional gasoline vehicles,” said Allen Schaeffer, executive director of the Diesel Technology Forum. “In this competitive technology field, it is encouraging that more Americans are choosing clean diesel cars than ever before.”

Today’s clean diesel cars have fewer emissions, and provide a much smoother ride, than the previous generation of diesel vehicles—and yet Americans have continued to hold stereotypical views of diesels as loud and smelly. That is finally changing. In May, more than 9,000 clean diesel cars were sold in the U.S.—a 34 percent jump compared to a year ago. By contrast, the lack of hybrid availability pushed down sales by 42 percent compared to 2010, down to a little more than 16,000 vehicles.

Nonetheless, clean diesels remain less than 1 percent of new cars sales. But according to Peter Marks, president and CEO for Bosch’s North and South American operations, as many as 10 percent of new cars and trucks sold in the U.S. might have diesel engines by 2015. Last month, U.S. Transportation Secretary Ray LaHood said, “We know that clean diesel is one ingredient in the recipe for our long-term energy security.” LaHood made the comment at the opening of a new Volkswagen manufacturing plant in Chattanooga, Tenn.

Rising federal fuel economy standards, which go to around 60 mpg by 2025, will require greater efficiency across the board—and will encourage automakers to make and sell more diesel vehicles.

Volkswagen’s clean diesel cars—including the Jetta TDI and Golf TDI—helped VW in May post its best month of sales in the United States in more than seven years. For the month, Volkswagen’s overall U.S. sales grew by 27.9 percent on a year-over-year basis.

The 2011 Jetta is available with three different engines, including gas-powered 2.0-liter, four-cylinder and 2.5-liter, five-cylinder models that earn 23 mpg in the city and 33 mpg on the highway. The most economical choice is the 2.0-liter TDI Clean Diesel engine that gets 30 mpg in the city and 42 mpg on the highway.

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“Are hybrids really fuel efficient? Not really, as you are adding more weight,” said Hinz. “Yes, we could do a power hybrid. We’re certainly not going to do both. You must decide to go with one or the other.” According to Autocar, Volkswagen has made the decision to go with power—unlike VW’s first hybrid, the Touareg Hybrid, which (although a large and powerful vehicle) was designed with efficiency as a priority.

Nearly every major automaker is starting to produce hybrids—creating a challenge for those who are late to the game. Engineers need to steer clear of patent infringements, and aim for a combination of driving dynamics, performance and mileage that will appeal to the company’s core customers. “We’re not an experienced hybrid maker like Toyota or Honda, so we don’t just want to come up with what everyone else already has,” said Hinz. It’s not clear if VW’s attempt at a power hybrid will succeed where Honda’s similar approach—in cars such as the CR-Z hybrid coupe and the discontinued Accord Hybrid—has fallen short.

As we reported in August, Volkswagen ruled out offering a hybrid with a diesel engine, because of cost.

Wrapped in the sheetmetal of the newly introduced Jetta, the 2012 gas-electric Jetta will be a full hybrid—utilizing VW’s twincharger TSI in-line four cylinder. The twincharger TSI, which incorporates both a supercharger and a turbocharger, has been available in Europe since 2006 in the VW Golf. The supercharger provides boost at low rpm with the turbo kicking in for top-end power. Combined with direct injection, the forced induction gives the 1.4-liter four nearly the same performance as the 2.0-liter turbo, but is more efficient and therefore delivers higher fuel mileage and fewer emissions.

Volkswagen has not released official MPG and horsepower numbers for the Jetta Hybrid. We expect that it would compete with the Jetta TDI’s 30 mpg city / 42 mpg highway numbers—with likely higher mpg in the city than on the highway.

Jetta Will Indicate VW’s Hybrid Strategy

The 2011 Touareg Hybrid, pairs a 333 horsepower, 3.0-liter supercharged direct injection V6 gasoline engine with a 34-kilowatt (47 horsepower) electric motor. It’s priced at $60,565, plus $820 in destination fees.

Other hybrid models, including the Passat and Golf, are expected in the next three years. The final decisions about how much to focus on power instead of efficiency in the Jetta will likely carry over to future VW hybrids.

During a press conference we attended in July in Palo Alto, Calif., Volkswagen chairman Dr. Martin Winterkorn said that Volkswagen hybrid and electric vehicles will account for three percent of the German carmaker’s global sales by 2018. This echoes statements made in June 2010 by Toscan Bennett, a VW product strategist. “VW as a brand takes the electrification of the automobile very seriously, and we have a longtime strategy for growing that business,” said Bennet. “The Jetta hybrid is our first entry in that strategy.”

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Affordability is the key word, as hybrids push further into mainstream vehicle lineups. The new (gas-powered) 2011 Volkswagen Jetta, which made its global debut in New York today, is priced at $16,000, about $1,700 less than the current version. “With the new Jetta, we’ve kept everything people liked, but also made the car more accessible to the entry-level buyer in the compact segment,” said Toscan Bennett, a VW product strategist. “We want people who had considered Jettas too expensive to put us on their shopping lists.”

Later this year, Volkswagen will introduce the Touareg Hybrid SUV, its first hybrid, but it will hardly be affordable. Based on pricing announced in Europe, the Touareg Hybrid could exceed $90,000 in the U.S. Moreover, it will join a crowded field of expensive luxury hybrid SUVs already on the market—and not selling particularly well.

On the other hand, a Jetta Hybrid probably will probably be priced in the low $20,000s, while offering fuel economy numbers in the mid-40 mpg range. It will represent the first time an automaker stacks up a hybrid and clean diesel option in a cost-competitive model.

City versus Highway

The Jetta TDI clean diesel, rated at 30 in the city and 41 on the highway, carries a base MSRP of $22,000. It’s way too early for fuel efficiency ratings for the Jetta Hybrid, but it’s reasonable to assume that the city and highway numbers will be reversed—with city driving in the 40s and highway mileage in the low to mid-30 neighborhood. Consumers are likely to make the hybrid versus diesel decision based on their driving cycle. Do you mostly drive on the highway? Go diesel. Mostly city driving? Take the hybrid. (Of course, we’ll have to wait and see how a VW hybrid will drive.)

More importantly to the green car movement, Volkswagen is demonstrating the “no silver bullet” philosophy, in which efficient gas-powered cars, clean diesel, hybrids and electric cars mutually coexist. Cutting oil dependence and reducing emissions is not an either-or decision. It’s all of the above.

In terms of electrification, Volkswagen is saying that electric-drive cars will come in a range—from conventionally hybrid through pure electric. (Ford is taking the same electrification approach.) With a lower price tag and no range concerns, hybrids will become the most affordable and accessible in the spectrum—while Volkswagen electric cars will take the critical step towards petroleum-free driving.

“VW as a brand takes the electrification of the automobile very seriously, and we have a longtime strategy for growing that business,” Mr. Bennett said. “The Jetta hybrid is our first entry in that strategy.”

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The clean-diesel “take-rate” is much higher than the percentage of consumers choosing the hybrid version, when a vehicle is offered with both gas and gas-electric hybrid options.

Nearly half of the buyers of the Volkswagen Jetta opted for the clean diesel engine. Meanwhile, about 8 percent of Toyota Camry buyers chose the Camry Hybrid, and the take rate for the Ford Escape Hybrids was about 10 percent.

Bosch’s analysis of Polk data shows these clean-diesel take rates for 2009:

• Audi A3 TDI: 20%
• Audi Q7 TDI: 30%
• BMW 335d: 8%
• BMW X5 xDrive x35d: 17%
• Mercedes-Benz GL 350 Bluetec: 18%
• Mercedes-Benz ML 350 Bluetec: 13%
• Mercedes-Benz R 350 Bluetec: 12%
• Volkswagen Jetta TDI (Sedan and Sportwagen): 49%+
• Volkswagen Touareg TDI: 33%

Any conclusion about the overall relative popularity of the two alternative powertrains is complicated by the fact that the Toyota Prius, which represents about half of all hybrid sales—as well as the Honda Insight—are only offered as hybrids.

In April 2009, Toyota sold 12,555 Priuses, while the most popular clean-diesel vehicle was the Volkswagen Jetta TDI, which tallied 3,622 sales.

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With dozens of new hybrids expected in the next couple of years, and the buzz (and government support) going to cars that can plug into the grid, will clean diesel vehicles be left in the zero-emissions dust?

Not exactly, if you consider that the 2010 Volkswagen Golf TDI packs a powerful punch of low-end torque and delivers an estimated 42 miles to the gallon. The base MSRP is $22,000, making the Golf TDI one of the most compelling mpg-per-dollar options. The hard line economics of the 2010 BMW 335d are not quite as compelling, but plunk down twice the dollars on the 6-cylinder diesel Bimmer to get almost twice the horsepower, and a lot more luxury. The BMW 335d is officially rated at 36 mpg on the highway and 27 in the city.

While Nissan, General Motors and other car companies are heavily betting on an electricity-powered automotive future, Volkswagen is banking on clean diesel. According to the Boston Herald, VW is projecting that up to 30 percent of its new sedan’s sales will be clean diesel vehicles, and that mainstream consumers, not necessarily willing to go hybrid or electric, will turn to diesel. In March, almost 7,000 of VW’s 22,000 sales in the US were diesels, said VW spokesman Christian Buhlmann. “One month, it’s a quarter. One month, its a third.”

Environmental Economics

Diesel vehicles carry a cost premium and diesel fuel currently sells, on average, for $0.20 more per gallon than gasoline. These additional costs are offset by better fuel economy, and federal tax credits. The VW Golf TDI automatic qualifies for a $1,700 tax credit, while the BMW 335d fetches $900. (Tax credits for most of the popular hybrids have expired, while the feds are giving a whopping $7,500 on electric cars, when they become available late this year.)

Honda had plans to offer a diesel vehicle put canceled. The only Japanese automaker planning to bring a diesel-powered sedan to the US is Mazda, probably sometime in 2012.

Only time will tell if individual consumers begin to adopt clean diesel vehicles in greater numbers—especially as electric-drive vehicles grow in popularity. In the meantime, diesel technology advocates are working to make sure that the nation’s heavy-duty trucks don’t make a shift from diesel to another alternative fuel receiving a lot of attention: natural gas.

“There is a reason today that diesel powers the overwhelming majority of the nation’s commercial trucking, school, and transit bus fleets,” said Allen Schaeffer, executive director of the Diesel Technology Forum. “Diesel’s unmatched combination of availability, safety, energy efficiency, and economical operation and performance have made it the technology of choice.” Compared to natural gas, Schaeffer believes that clean diesel delivers clear economic benefits “with an ever-smaller climate and environmental footprint” as low-carbon diesel fuel comes online as predicted.

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“We’re almost selling them off the trucks,” said Tom Wegehaupt, Volkswagen PR specialist, in an interview with HybridCars.com. “As soon as they’re on dealer lots, they’re gone.” The demand for the Sportwagen TDI is especially striking, considering a dismal auto market that has left most dealers desperate for customers.

Demand for the clean diesel Jetta Sportwagen prior to the Cash for Clunkers program left VW dealership inventories stretched to the limit. With the Clunkers program, inventory for the vehicle was depleted in areas of the country—mostly East and West Coasts where diesel vehicles and Volkswagens are most popular. The problem is exacerbated by the Sportwagen TDI going through a model year changeover, with an inventory gap between the outgoing 2009 version being phased out and the redesigned 2010 version arriving in dealerships this month.

“Eighty percent of all Sportwagens that were sold had the TDI engine in it. The TDI penetration rate was spectacular,” Wegehaupt said. “It caught us off guard a little bit.” He said that about 30 percent of Jetta sedans were clean diesel.

The Comeback of the Wagon?

Wegehaupt believes consumers are seeing the Sportwagen as a better and more economic alternative to SUVs. “With the Sportwagen, you get all the form and functionality of an SUV, with tremendous cargo room,” he said. “It’s like having an SUV, but in a very fuel-efficient package, especially with a TDI engine.”

The suggested retail price of the 2010 Jetta Sportwagen TDI starts at $24,310—compared to the similarly equipped gas-version that begins at $22,950. That extra cost is eliminated by the federal tax credit of $1,300, offered as part of the federal government’s “Qualified Advanced Lean-Burn Technology” program. In addition, diesel vehicles generally maintain a better resale value than gas-powered cars.

Shifting fuel prices have also benefited diesels. For most of 2008, diesel prices were significantly higher than gasoline. Currently, diesel prices are about 10 cents higher than gas on a national level. But in California, where clean diesel is popular, diesel is nearly 30 cents lower than gasoline. “When diesel prices go down, our diesel sales go up,” said Wegehaupt.

FoxBusiness.com reported that TDI clean diesel sales in Canada were also very strong—accounting for 68 percent of all Jetta sedan and wagon sales, and 23 percent of overall Volkswagen sales in September.

Sportwagen TDI, The Prius of Clean Diesel

From January through September 2009, Volkswagen sold 8,072 Jetta Sportwagen TDIs, and 3,802 gas models in the United States. Sportwagen TDI sales peaked in July with nearly 2,000 sales—neck and neck with Toyota sales of the Prius in July. In many respects, the Sportwagen TDI is to clean diesel what Prius is to hybrid: the halo vehicle that succeeds for its fuel-efficient technology but more importantly for the sum total of its benefits, functions and design. Sales of clean diesel vehicles from Audi, BMW, and Mercedes—either luxury or SUV or both—have not performed nearly as well, much the same way that SUV and luxury hybrids have lagged behind the Prius.

With low inventory, Volkswagen Jetta Sportwagen TDI sales dropped below 400 units in August. VW is hoping that interest in the vehicle remains strong as the company restocks dealerships with the 2010 model, and prepares for the Golf TDI sedan—30 mpg city / 42 high mpg—to hit showrooms later this month. VW today announced a starting price tag of $21,990 for the Golf diesel.

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