Honda Delays 60-mpg Diesel Acura TSX

[SurfaceUnits]

The European diesel-powered Acura TSX gets more than 60 miles to the gallon in EU driving tests. But Honda is delaying production for the U.S. due to cost issues and technical obstacles.

Published November 11, 2008
Honda announced last week that it will delay the launch of its planned first diesel for the United States. The diesel-powered Acura TSX will be pushed back to 2010 from 2009, and some reports claim the company’s U.S. diesel program may be canceled completely.

The main reason for the delay is cost. Honda claims the expense of creating a diesel engine to meet California’s emissions standards—allowing it to be sold in all 50 states—has increased to more than $5,000 above a comparable gasoline-powered version.

The Japanese newspaper, Nikkei, said Honda is seeking to develop new catalytic converter technology that uses less platinum in order to keep prices down.

http://www.hybridcars.com/fuels/honda-delays-60-mpg-diesel-acura-tsx-25245.html


Acura delays diesel due to business conditions, not technical hurdles
by Michael Harley on Dec 11th 2008 at 4:29PM

According to a conversation with AutoblogGreen yesterday, Acura's diesel program has been put on hold – indefinitely. Honda of America spokesperson Sage Marie said the program is in "wait and see" mode due to commercial, not technical, reasons (it was just two months ago that the program was rumored to be shelved when the engine couldn't pass emissions). Honda says a combination of factors, including plummeting car sales and the high cost of diesel fuel (especially now that gasoline is down below $2/gallon) are solely to blame.

http://www.autoblog.com/2008/12/11/acura-diesels-delayed-due-to-business-conditions-not-technical/

[SurfaceUnits]

2009 Diesel Maxima coming with automatic

http://www.autoblog.com/tag/diesel+maxima/

[Indy]

Why is diesel so expensive?

[cameraman]

Too long & complex to post.

I'll let the DOE do the heavy lifting:
http://www.eia.doe.gov/bookshelf/brochures/diesel/index.html


Besides excise taxes, the following are the main factors that affect diesel fuel prices:

Tight refining capacity and international diesel fuel demand: U.S. refineries have been operating at around 90-percent capacity over the last 10 years. Most other countries rely even more heavily on distillates and diesel fuel than does the United States, and refining capacity is tight worldwide. U.S. diesel fuel prices are more and more affected by competing international demand for refined distillates.

Product supply/demand imbalances: Prices of transportation fuels are generally more volatile than prices of other commodities because the U.S. vehicle fleet is so heavily dependent on petroleum and few alternative fuels are available. If supply declines unexpectedly due to refinery problems or lagging imports, diesel inventories (stocks) may decline rapidly. When stocks are low and falling, some wholesalers and marketers may bid higher for available product. If the diesel fuel transportation system cannot support the flow of surplus supplies from one region to another quickly, prices will remain comparatively high. These are normal price fluctuations experienced in all commodity markets.

Seasonality in the demand for diesel fuel and distillates: While U.S. diesel fuel demand is fairly consistent and generally reflects the overall health of the economy, prices tend to gradually rise during the fall, decline in the late winter, rise through the early spring, and then drop a bit in the summer. Seasonal upward pressure on diesel prices also results from demand by farmers in the summer, cold weather in the winter, and stores building up inventories during the winter holiday season.

Transportation Costs: Transportation costs generally increase with increasing distance between the retail location and distribution terminals and refineries. Areas farthest from the Gulf Coast (the source of nearly half of the diesel fuel produced in the United States) tend to have higher prices.


Doesn't really answer the question though:irked:

[chop456]

So don't sell it in California. It worked for VW.

[Methanolandbrats]

So don't sell it in California. It worked for VW. Honda has to maintain the illusion that they GAF about the environment, so that no workee for them.

[chop456]

Yeah, but it doesn't work for me. I want one and I couldn't care less if Californians can buy one or not. :D

[rosawendel]

nevermind...

[Indy]

Yeah, firstly, **** California.

Secondly, I still don't get the diesel thing. Isn't diesel in essence "less" refined than regular gas? Why is the less refined product more expensive?

[cameraman]

It is now low sulfur which requires a little more work.
Any accurate explanation of the price seems to be well buried.

[nrc]

Separated at birth?

[oddlycalm]

Honda blaming California is a red herring. That's like saying the reason their F1 team failed is that all the tracks favored the competing cars...:gomer:

The Japanese companies have stubbornly stuck with a much more expensive silicon carbide/platinum filter. VW made an approach to Corning in 2004 to produce a smaller version of their heavy truck filter and other auto companies switched from the Japanese filters to Corning due to cost as well, including Kia and Hyundai. BTW, world-wide demand for diesel exhaust filters will reach $2 billion by 2011 so fighting to hold the high ground matters.

oc