Will Emissions Trump Mileage?

TECHNOLOGY VS. LEGISLATION Will Emissions Trump Mileage? WASHINGTON (June 7, 2006) - Most of today's diesels use state-of-the-art engine technologies making them among the quietest and most powerful engines on the road. Among these, the latest common-rail direct injection (CDI) diesel engines offer 20 to 40 percent better fuel mileage, as well as a longer range between fill-ups and more powerful acceleration than prior diesel models. In addition, diesels inherently produce high engine torque, delivering V8 pulling power with four-cylinder fuel economy. However, in the current regulatory squeeze - an imminent deadline of more stringent U.S. Environmental Protection Agency (EPA) Tier 2 Bin 5 emission standards here and a similar requirement in Europe - automakers are struggling to intersect increasing consumer demand for fuel efficient vehicles and regulatory deadlines. Already some fallout has occurred, with a number of diesel vehicles being pulled from the 2007 model-year lineup. Market withdrawals As reported by the Detroit Free Press, Volkswagen (VW) is not going to sell 2007 models of its diesel-powered Beetle, Golf and Jetta vehicles. The newspaper noted that VW has promoted its fuel-efficient diesel engines heavily this year as a way to beat high gasoline prices. The frugal engines can boost a car or truck's mileage as much as 35 percent compared with a similar gasoline engine.  A listing of Tier 2 Bin 5 approved vehicles can be viewed online by clicking here.VW spokesman Steve Keyes says that currently, diesels comprise 23 percent of all VW sales in the United States. Keyes notes that diesel-powered vehicles have helped drive a 20 percent increase in overall U.S. sales for the automaker for the first four months of 2006, nearly doubling VW's 2005 market share: "They [diesels] are becoming a significant part of our business, so it's disappointing. If diesels continue to contribute 20 to 22 percent of our sales, this has some significant impact on us."  VW is responding by building extra 2006 diesel Jettas, which it hopes to sell well into next year. In addition, the automaker will offer a diesel version of its Touareg SUV in 2007 and plans to introduce a new diesel Jetta that meets emissions standards in all 50 states for the 2008 model year. Passenger cars aren't the only ones feeling the regulatory pinch. DaimlerChrysler is also ending production of Jeep Liberty diesels, largely for the same reason. The company wouldn't say if the vehicle would return in 2008 with a compliant powertrain similar to VW's strategy, but he did say the automaker remains committed to diesel engines for American consumers. At a meeting of last week, Chrysler CEO Tom Lasorda reiterated the company's commitment to diesel, noting the coming introduction of the 2007 Jeep Grand Cherokee diesel.Meeting the mark Cleaner, ultra-low sulfur diesel (ULSD) is in the supply chain now. Refiners are now producing a mandated minimum quantity. Through the summer and early fall of this year, ULSD will make its way through the distribution network to meet a mid-October deadline for availability at all refueling stations. Yet even with clean diesel fuel, many current vehicles don't meet the regulatory emission minimums. Cleaner fuel is just one part of the solution, with improved technology being another. Currently, only Mercedes-Benz' (M-B) E320 BLUETEC- a full-sized, four-door luxury sedan - meets the coming EPA standards. The vehicle provides reasonable mileage (an EPA rated 27 miles per gallon (mpg) around town and 37 mpg in highway driving) and can cruise up to 780 miles (New York to Detroit) on a single tank of fuel - all in a package that uses 201 horsepower and can accelerate from zero to 60 mph in 6.6 seconds.  In addition, the automaker intends to launch an EPA-compliant ML320 CDI SUV, sport touring R320 CDI and GL320 BLUETEC. The vehicle launches underscore CEO Dieter Zetsche's remarks at the recent North American International Auto Show in Detroit that the time is right to consider a switch to new clean diesel technology. Scheduled to make its world retail debut in the fall of 2006, M-B BLUETEC technology is the key to meeting worldwide emissions standards. The technology combines sophisticated engine design with a special exhaust after-treatment system to achieve a better than emissions standards diesel exhaust gas after-treatment. The E320 BLUETEC incorporates an oxidizing catalytic converter, a diesel particulate filter, an advanced "de-nox" storage converter and a Selective Catalyst Reduction (SCR) catalytic converter. To meet even more stringent emission requirements, the BLUETEC system could also be equipped with another M-B innovation: an AdBlue injection system. When AdBlue, a water-based urea solution, is injected into precleaned exhaust gas, ammonia is released, converting oxides of nitrogen (NOx) into harmless nitrogen in a downstream SCR catalytic converter. This addition will be made for the larger 2007 GL320, which will be introduced into the United States in early 2007, if EPA accepts the use of a urea-based injection system that would necessitate developing an infrastructure to handle another fluid. Other automakers have been considering alternatives. Honda, for example, recently patented a new diesel after-treatment system (US Patent # 7043902) that meets both the federal and California standards. When incorporated into new vehicles, the system will enable Honda to produce diesels compliant in all 50 states. The process combines a small plasma reactor with catalytic units as the means to reduce emissions. The electrically powered plasma reactor operates to first convert NOx to nitric oxide (NO2), after which the NO2 stream flows through catalyst units, where it is either adsorbed or reduced by alkali metals and silver. Additionally, particulate matter (PM) is also treated by the injection of a reducing agent. For the aftermarket, many Tier 1 suppliers, such as Delphi Corp and Tenneco Automotive, have developed or are working towards improved technologies, including diesel particulate filters (DPF), traps and SCR systems. The regulations have created opportunities for those in the aftermarket who see it. Over time, as late-model vehicles are required to comply with emissions standards or face being taken off the road, retrofitting diesels could become an income stream for some businesses. Tenneco for instance, has just introduced a new Walker brand DPF for the European independent aftermarket, in advance of the introduction of European Union legislation and tax incentives to help retrofit diesel vehicles, that come into effect in this July. Delphi had announced a comparable DPF earlier. Is temporary relief in sight? EPA maintains that low emissions and good fuel economy can both be attained, creating a win-win scenario for automakers, consumers and the environment. The Agency has a history of setting tough goals, but it has also shown a willingness to dialogue with industry participants working in good faith towards those goals, and issue extensions if the Agency deems it appropriate. For instance, this past March, EPA made some minor amendments applicable to light-duty diesel vehicles under the Tier 2 program (EPA420-F-06-027). The changes provided alternative compliance options that will last for only three model years - 2007 through 2009 - during which time advancements in diesel emissions control technologies will be further developed. The two voluntary compliance options would affect a very limited set of standards for NOx, including only high altitude and high speed/high acceleration conditions.  An EPA spokesperson told Motor Age the issue was a hot topic within the Agency at the moment. Given that some of these automakers - who are proponents of diesel in America - have been and are continuing to work towards compliant solutions with a good faith effort, there is hope that relief may be forthcoming, as EPA currently considers the issue. For some, an extension would bring relief for 2007 and additional time to comply; for others, it may be good news that came just a bit too late.(Sources: EPA, Detroit Free Press, U.S. Patent & Trademark Office)