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Report: Honda to Delay New Diesels for US, Japan Until 2010

The Nikkei that Honda Motor Co. will delay its introduction of advanced diesel cars into the US and Japan until 2010 at the earliest because of difficulties keeping prices down. The company was originally targeting the introductions for next year.

Seeing medium- and long-term growth in diesel cars, Honda had hoped to lower prices of such vehicles closer to those of gasoline-powered models. But even though prices of platinum and other precious metals used as catalysts have plunged, its diesel models are still expected to cost around 500,000 yen [US$5,100] more. The automaker is therefore rushing to develop catalytic technology that uses much less platinum.

On top of that, the price gap between the fuels that power these cars, diesel and gasoline, has narrowed, making diesel cars seem less economical than before.

Comments

Nate H.

This kinda sucks to hear. But...

The gap between diesel and gas has narrowed?? In what country? In this one its a dollar wide.

Here in my part of Ohio, ULSD is $3.109 and gasoline is $2.129. Where is the narrow gap? I see a wider spread in larger cities. ULSD at $3.139, gas at $1.99.

Sounds VERY economically "upside-down" for diesels, even though I know the refineries are profiting quite nicely at nearly a buck over spot for ULSD.

Nate

Sam

only cost problem?
How about patent problem due to toyota?

It isn't just refiners taker larger profits on diesel, there are also higher taxes.

Revamping the tax system is going to be needed soon and this would be helpful for diesel passenger cars. Remove all state and federal taxes on fuels (for highway & road funds) and instead institute a tax on vehicles paid by yearly miles driven and based on empty weight. Way stations on highways will cover taxation for laden long haul trucks. If necessary determine an average "load" for trucks to be taxed at. Effectively taxing those who damage the road the most. This gets at the issue of electric and hybrid cars avoiding their fair share of road use taxes.

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