Hyundai Prepares a Diesel for U.S.

Washington DC April 6, 2007; The AIADA newsletter reported that Hyundai may soon offer diesel engines to U.S. consumers as an alternative to gasoline-electric hybrids if it can clear cost and technical hurdles, the automaker said yesterday.

Steve Wilhite, chief operating officer of Hyundai Motor America, said diesels make financial sense for its customers. "The highest priority on my personal wish list is bringing our diesel technology to the U.S., and I'd like to bring that across all of our products,"

Wilhite told the Detroit Free Press. "It just seems like a much more elegant solution to me than a hybrid." Other automakers are getting in on the act.

Honda has said it will offer a new diesel engine in 2009, and German automakers have promised several diesel variants. Wilhite says that a diesel option costs about $1,000, and would pay for itself in fuel savings.

Diesels and hybrids can post 40% better fuel economy than gasoline engines in some vehicles, but hybrids cost $2,000 to $3,000 more than standard models.

"Fundamentally, you don't get a payback on a hybrid," Wilhite said. "In a diesel, you more than cover the premium."