Monday, April 5, 2010

German Luxury brands lead the US market in diesel segment

The delay of diesels in the U.S. market from car manufacturers like GM, Ford, Chrysler, Nissan, Toyota, and Honda can be blamed on the shaky state of the economy. European brands like Mercedes Benz, BMW, Audi, and Volkswagen leave their competition behind and why not if they can charge the cost of producing expensive engines to their consumers who go for premium brands.

American and Japanese car manufacturers don’t have the positioning and advantage that the European brands have. The vehicles they produce are mainstream and they do not have significant diesel programs in Europe or other parts of the globe.

German Luxury Diesel Cars

The European car makers are grabbing the opportunity to dominate the market as diesel prices drop and as clamor for more fuel efficient engines increase. They are finding the greener solution in diesel which has more energy stored compared to gasoline. Diesel technology can still compete with the emerging hybrid vehicles.

Consumers can save on average about $3000 to $8000 per car compared to getting hybrid systems. Diesel powertrains also prove to be torquey and perform in real driving conditions. The hybrid, on the other hand, has the street image of being the greener of the choices and is more popular nowadays.

The European luxury car makers will definitely push forward with their plans of selling more units in the United States as Japanese and American car makers struggle to bring back their diesel solutions to North America.

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