Diesel revolution is here
BY NEIL MCDONALD | 3rd Mar 2006
Notwithstanding the extra price per litre and other issues at the bowser (including available pumps and cleanliness), private consumers are flocking to diesel-powered new cars.
According to VFACTS industry sales figures, in January alone the demand was 190 per cent up compared to the same time last year, with almost 500 sales of diesel passenger vehicles compared to 168 last year.
Non-private buyers are also showing a growing preference for diesel, with a 46 per cent lift in sales for January.
While car-makers are wary of formulating a trend based on a single month’s figures, the figures speak for themselves. Last year, 7170 turbo-diesel passenger cars were sold in Australia to private and non-private buyers – a jump of 300 per cent over 2004, admittedly off a low base.
The reasons are many. Diesel is typically 25 per cent to 40 per cent more fuel-efficient than petrol, the improvement in torque is palpable and engine longevity is an attraction for buyers who keep their cars for many years.
The level of interest has also caught some carmakers napping while others are ready and waiting to launch the latest diesels with particulate filters that work best with the new ultra-low sulphur diesel fuels.
Although the established French marques of Citroen and Peugeot have been peddling oil-burners in limited numbers for years, the crossover to mass-market appeal has only just materialised.
Auto industry analysts also acknowledge that diesels will really hit the mainstream once Holden or Ford offer a diesel-engined Commodore or Falcon.
Holden has diesel VE Commodores running around and Ford is also dipping its toe in distillate with a case being developed to add the Focus diesel to the line-up.
But Ford Australia president Tom Gorman remains coy about when, or even if, a turbo-diesel Territory is on the cards. Others known to be trialling diesels are Honda Australia, with a diesel Accord Euro, while Mazda Australia has completed evaluation of its Mazda6 diesel, which goes on sale later this year.
Cognisant of Mazda’s diesel decision was the need for ultra-low sulphur diesel, which came into force from January 1.
Honda is also known to be keen on the diesel CR-V but says its higher cost is a sticking point.
BMW Australia offers a 5 Series diesel, but 1 and 3 Series diesels are on the launch blocks. This brings it in line with Mercedes-Benz and Audi in offering state-of-the-art diesels.
Peugeot Cars Australia spokesman Mathew McAuley acknowledged that modern diesels had nothing in common with the slow and noisy engines of the past as particulate filters and new emission technologies were delivering cleaner and quieter engines.
He also said the initial higher cost of a diesel car – around $3000 more expensive that the same petrol equivalent – could be recouped at resale.
"The servicing costs for petrol and diesel variants over 60,000km are almost identical," he said, citing diesel and petrol 307 models as having almost identical service intervals.
According to Peugeot, 307 HDi Touring will cost $1428.80 over 60,000km or three years, while a 307 XSR petrol will cost $1431.25 with a metropolitan labour cost of $99 per hour.
Mr McAuley said that although the HDi models were more expensive, "the ‘payback’ figure often calculated is somewhat flawed when it focuses on how many kilometres you need to travel to save the equivalent amount (fuel cost savings) to justify the extra purchase price".
"This approach neglects that fact that the customer actually sells the car at some point, and will recover a higher residual as they paid a higher purchase price in the first place," he said.
Peugeot’s own research also shows resale values of its HDi models is stronger than the petrol equivalents.
"So, if there is a need to look for a payback, the eventual sale of the car should account for most of it," he said.
The story is similar at Volkswagen Australia, which has experienced huge demand for diesel-powered Golfs and is broadening its diesel offerings.
According to spokesman Matthew Wiesner, the service costs for a petrol Golf versus a diesel model are almost the same. "Only the DSG is slightly higher due to the addition of oil and filter changes," he said.
Based on a $90 labour rate and a cumulative cost of all services up to 60,000km, the figures are compelling. A petrol Golf 1.6 is $1203.03, 2.0 FSI $1331.08, diesel 1.9 TDi manual $1299.05, diesel 1.9 TDi DSG $1691.66, diesel 2.0 TDi manual $1338.65 and diesel 2.0 TDi DSG $1731.26.
Notwithstanding greenhouse concerns, diesels are getting cleaner, with the DaimlerChrysler (Mercedes, Chrysler, Dodge) Bluetec system being a case in point.
Bluetec is a modular concept that combines various closely co-ordinated technologies aimed at minimising emissions. According to DaimlerChrysler, the result is a gradual and effective, carefully measured minimisation of all relevant emissions.
Cars equipped with Bluetec incorporate an oxidizing catalytic converter and particulate filter as well as a "deNOx" (nitrogen oxide-reducing) system.
However, despite the surge for distillate, manufacturers and importers are still concerned about a lack of proper refuelling infrastructure support from the oil companies.
All manufacturers want oil companies and service station owners to improve access to diesel bowsers and clean them up. In many cases diesel bowsers are not easily accessible and many rural service stations still have fast-flow diesel refuelling nozzles designed for the transport industry.
| DIESEL DIARY: | |
| Alfa Romeo 159 2.4 JTD | July |
| Audi A4 TDi | Now |
| BMW 120d | May |
| BMW 320d | June |
| Citroen C4 HDi | Now |
| Citroen C6 HDi | July |
| Chrysler 300C sedan and Touring CRD | September |
| Dodge Caliber 2.0D | December |
| Fiat Punto Multijet | June |
| Ford Focus TDCi | 2007 |
| Holden Astra CDTi | June |
| Honda Accord Euro 2.2-iCTDi | 2007 |
| Jaguar S-Type 2.7D | April |
| Holden Astra CDTi | June |
| Mazda6 2.0 | October |
| Mercedes-Benz S320 CDi early | 2007 |
| Mazda6 2.0 | October |
| Mercedes-Benz R320 CDi | May |
| Mercedes-Benz B180 CDi | June |
| Peugeot 407 Coupe HDi | March |
| Peugeot 207 HDi | December |
| Renault Megane dCi | September |
| Renault Laguna dCi | December |
| Volvo XC90 D5 | December |
| Volkswagen Jetta TDi | Now |
| Vokswagen Polo TDi | Now |