Monday, September 15, 2008

Ford has a 65 mpg clean diesel car called the Fiesta ECOnetic, to sell in Europe this November, but claims it cannot make a business case for selling the cute little bug in the US. Why? Manufacturing costs in Europe are high given the current exchange rate, they cannot project a volume that would allow manufacturing in the US, and diesel fuel is more heavily taxed in the US.

Sounds reasonable, no?

No! Mercedes-Benz will sell 3 diesel models in the US next year and both Nissan and Honda will be selling diesel models in the US in 2010. Looks like Ford's about to shoot themselves in the foot again. --see Business Week here.

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