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The 65 mpg Ford the U.S. Can't Have

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If ever there was a car made for the times, this would seem to be it: a sporty subcompact that seats five, offers a navigation system, and gets a whopping 65 miles to the gallon. Oh yes, and the car is made by Ford Motor (F), known widely for lumbering gas hogs.

Ford's 2009 Fiesta ECOnetic goes on sale in November. But here's the catch: Despite the car's potential to transform Ford's image and help it compete with Toyota Motor and Honda Motor (HMC) in its home market, the company will sell the little fuel sipper only in Europe. "We know it's an awesome vehicle," says Ford America President Mark Fields. "But there are business reasons why we can't sell it in the U.S." The main one: The Fiesta ECOnetic runs on diesel.

Automakers such as Volkswagen (VLKAY) and Mercedes-Benz (DAI) have predicted for years that a technology called "clean diesel" would overcome many Americans' antipathy to a fuel still often thought of as the smelly stuff that powers tractor trailers. Diesel vehicles now hitting the market with pollution-fighting technology are as clean or cleaner than gasoline and at least 30% more fuel-efficient.

Yet while half of all cars sold in Europe last year ran on diesel, the U.S. market remains relatively unfriendly to the fuel. Taxes aimed at commercial trucks mean diesel costs anywhere from 40 cents to $1 more per gallon than gasoline. Add to this the success of the Toyota Prius, and you can see why only 3% of cars in the U.S. use diesel. "Americans see hybrids as the darling," says Global Insight auto analyst Philip Gott, "and diesel as old-tech."

None of this is stopping European and Japanese automakers, which are betting they can jump-start the U.S. market with new diesel models. Mercedes-Benz by next year will have three cars it markets as "BlueTec." Even Nissan (NSANY) and Honda, which long opposed building diesel cars in Europe, plan to introduce them in the U.S. in 2010. But Ford, whose Fiesta ECOnetic compares favorably with European diesels, can't make a business case for bringing the car to the U.S.

TOO PRICEY TO IMPORT

First of all, the engines are built in Britain, so labor costs are high. Plus the pound remains stronger than the greenback. At prevailing exchange rates, the Fiesta ECOnetic would sell for about $25,700 in the U.S. By contrast, the Prius typically goes for about $24,000. A $1,300 tax deduction available to buyers of new diesel cars could bring the price of the Fiesta to around $24,400. But Ford doesn't believe it could charge enough to make money on an imported ECOnetic.

Ford plans to make a gas-powered version of the Fiesta in Mexico for the U.S. So why not manufacture diesel engines there, too? Building a plant would cost at least $350 million at a time when Ford has been burning through more than $1 billion a month in cash reserves. Besides, the automaker would have to produce at least 350,000 engines a year to make such a venture profitable. "We just don't think North and South America would buy that many diesel cars," says Fields.

The question, of course, is whether the U.S. ever will embrace diesel fuel and allow automakers to achieve sufficient scale to make money on such vehicles. California certified VW and Mercedes diesel cars earlier this year, after a four-year ban. James N. Hall, of auto researcher 293 Analysts, says that bellwether state and the Northeast remain "hostile to diesel." But the risk to Ford is that the fuel takes off, and the carmaker finds itself playing catch-up—despite having a serious diesel contender in its arsenal.

http://www.businessweek.com/magazine/conte...opStories_ssi_5

"The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies."

Senator Barack Obama
Senate Floor Speech on Public Debt
March 16, 2006



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Not interested anyways. Does nothing to reduce dependence on oil. Namely, foreign oil. Even if millions all at once decided to go this route, we'd still be forced to import and drilling would still have zero effect now, and little-to-none later on.

And certainly these cars that are coming out better not get a pass on emission tests just because they are fuel efficient. Prius' get the love they do because they use hybrid engines and are very, very low emitters.

To me going diesel is a joke (only years ago did I ever even semi-seriously think of getting a VW Golf, although that was at a much dirtier diesel era), and I'd rather see how the BEV's and HCV's do when they roll out in full force.

BEV's for instance, like hard drives, rely heavily on magnetism, which are extremely reliable running constantly at high speeds. Hard drives run for years straight without ever being turned off, reliably, at 7,200 , 10,000 , and 15,000 RPMs (SCSI for the 15ks), and the emission is only heat. The only concern is battery costs and disposal. Which certainly shouldn't be a problem given those in favor of nuclear power plants.

If you want to get smart with cars, go big (no ICE) or go home.

Edited by SRVT
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Not interested anyways. Does nothing to reduce dependence on oil. Namely, foreign oil. Even if millions all at once decided to go this route, we'd still be forced to import and drilling would still have zero effect now, and little-to-none later on.

And certainly these cars that are coming out better not get a pass on emission tests just because they are fuel efficient. Prius' get the love they do because they use hybrid engines and are very, very low emitters.

To me going diesel is a joke (only years ago did I ever even semi-seriously think of getting a VW Golf, although that was at a much dirtier diesel era), and I'd rather see how the BEV's and HCV's do when they roll out in full force.

BEV's for instance, like hard drives, rely heavily on magnetism, which are extremely reliable running constantly at high speeds. Hard drives run for years straight without ever being turned off, reliably, at 7,200 , 10,000 , and 15,000 RPMs (SCSI for the 15ks), and the emission is only heat. The only concern is battery costs and disposal. Which certainly shouldn't be a problem given those in favor of nuclear power plants.

If you want to get smart with cars, go big (no ICE) or go home.

The fixed and constant operating environment of a HDD is not the same as variable environmental conditions and loads, geez man.

What type of BA do you have?

According to the Internal Revenue Service, the 400 richest American households earned a total of $US138 billion, up from $US105 billion a year earlier. That's an average of $US345 million each, on which they paid a tax rate of just 16.6 per cent.

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Not interested anyways. Does nothing to reduce dependence on oil. Namely, foreign oil. Even if millions all at once decided to go this route, we'd still be forced to import and drilling would still have zero effect now, and little-to-none later on.

And certainly these cars that are coming out better not get a pass on emission tests just because they are fuel efficient. Prius' get the love they do because they use hybrid engines and are very, very low emitters.

To me going diesel is a joke (only years ago did I ever even semi-seriously think of getting a VW Golf, although that was at a much dirtier diesel era), and I'd rather see how the BEV's and HCV's do when they roll out in full force.

BEV's for instance, like hard drives, rely heavily on magnetism, which are extremely reliable running constantly at high speeds. Hard drives run for years straight without ever being turned off, reliably, at 7,200 , 10,000 , and 15,000 RPMs (SCSI for the 15ks), and the emission is only heat. The only concern is battery costs and disposal. Which certainly shouldn't be a problem given those in favor of nuclear power plants.

If you want to get smart with cars, go big (no ICE) or go home.

The fixed and constant operating environment of a HDD is not the same as variable environmental conditions and loads, geez man.

What type of BA do you have?

Wow, because, you know, I suggested we're all driving cars the size of a hard drive.

Your stupidity is quite baffling.

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LOL, until the US citizens learn to love small cars, this just isn't going to happen anyway. This car is tiny by American standards. It doesn't stand out as small in Europe because the average car on the road is a lot smaller. It's cool though, gotta love 65mpg!

Edited by Madame Cleo

Refusing to use the spellchick!

I have put you on ignore. No really, I have, but you are still ruining my enjoyment of this site. .

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LOL, until the US citizens learn to love small cars, this just isn't going to happen anyway. This car is tiny by American standards. It doesn't stand out as small in Europe because the average car on the road is a lot smaller. It's cool though, gotta love 65mpg!

What do you drive?

Man is made by his belief. As he believes, so he is.

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In our data center we have, on average, 2 hard drive failures every year.

more than that here. about half a dozen, primarily laptops.

* ~ * Charles * ~ *
 

I carry a gun because a cop is too heavy.

 

USE THE REPORT BUTTON INSTEAD OF MESSAGING A MODERATOR!

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In our data center we have, on average, 2 hard drive failures every year.

more than that here. about half a dozen, primarily laptops.

Well that's why I mentioned the data center, it doesn't house laptops. If you include our laptops and desktops, that number goes way higher than 2.

Man is made by his belief. As he believes, so he is.

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In our data center we have, on average, 2 hard drive failures every year.

more than that here. about half a dozen, primarily laptops.

Well that's why I mentioned the data center, it doesn't house laptops. If you include our laptops and desktops, that number goes way higher than 2.

Yeah....there's a reason a 15K SCSI drive costs 4 times more than a comparable IDE drive..... and that's it. lol

Plus, you gotta love the "jet engine" sound when an entire SCSI array progressively spools up.

Sorry..... geek porn. Got carried away there....

Lady, people aren't chocolates. Do you know what they are mostly? Bastards. ####### coated bastards with ####### filling. But I don't find them half as annoying as I find naive bobble-headed optimists who walk around vomiting sunshine.
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Filed: Citizen (apr) Country: Brazil
Timeline
In our data center we have, on average, 2 hard drive failures every year.

more than that here. about half a dozen, primarily laptops.

Well that's why I mentioned the data center, it doesn't house laptops. If you include our laptops and desktops, that number goes way higher than 2.

Yeah....there's a reason a 15K SCSI drive costs 4 times more than a comparable IDE drive..... and that's it. lol

Plus, you gotta love the "jet engine" sound when an entire SCSI array progressively spools up.

Sorry..... geek porn. Got carried away there....

speaking of geek stuff, i've got a pm to send you tonight about computer stuff.

* ~ * Charles * ~ *
 

I carry a gun because a cop is too heavy.

 

USE THE REPORT BUTTON INSTEAD OF MESSAGING A MODERATOR!

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