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Old 06-05-2009, 10:06 AM   #1
diddiyo


 
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Unhappy Oh come on now GM...

see, this is the kind of stuff that just can't happen right now...

GM marketing boss Mark LaNeve apparently unaware that diesel is now cheaper than gas

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LaNeve went on to claim that diesel is $1.25 a gallon more expensive than gasoline. According to the Energy Information Agency, the national average for diesel this week is $2.35 / gallon while regular gas is $2.52 or $0.17 more than diesel. Admittedly, the fact that diesel is now cheaper than 87 octane gas is a recent development (a trend that nobody is sure how long it will last), but – going on national television and quoting outdated fuel prices as a reason for your bankrupt company's business decisions... well, that doesn't strike us as a terribly hot idea.
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Old 06-05-2009, 10:18 AM   #2
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wow......
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Old 06-05-2009, 10:49 AM   #3
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Non-issue. It will go back up eventually, and like the article said it just went cheaper again.
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Old 06-05-2009, 11:08 AM   #4
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I disagree, I don't think it's a non-issue. Basically GM is saying diesel isn't worth their time. If you are serious about making your fuel mileage numbers, dismissing diesel is fairly shortsighted. And it should be cheaper, even ultra-clean is an easier process then gas.
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Old 06-05-2009, 11:29 AM   #5
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Diesel will not always be cheaper. It's the most sensitive to the supply-and-demand market, the more diesel needed the more expensive it will become. For the last several years it was much more expensive than regular gasoline (until just recently, but I full believe that's a fluke).

I am not vested enough to do the math but I'm betting that the ratio of cost-per-mile between the two are becoming more and more negligible as gasoline engines continue to be more efficient.
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Old 06-08-2009, 11:01 AM   #6
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There must be a reason over 50% of all cars sold in Europe are diesel. It needs to be investigated and I think GM is wrong in not doing so. Just read that the take rate on the new Jetta TDI is something like 34% which is significant for NA.
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Old 06-08-2009, 11:04 AM   #7
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GMs direction is towards alternative fuels, battery power in particular..... which I belive is the right direction.
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Old 06-08-2009, 11:23 AM   #8
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I have done the math and for me it was simple. I converted to a diesel in Oct and my 7000 lbs 2500 Silverado gets on average better fuel economy (.17 mile) then my 5200 lbs 1500 Dodge did (.20 mile). This was done base on diesel costing 2.60 and gas at 2.30, now the price is the same as gas or cheaper. Yes my diesel cost me 10k difference, but is two years newer and has about 50k less miles. When I buy a programmer and exhaust I will bump the mpg by about 2-3 and gain more hp and torque. I have also hear people say the extra maintenance cost ( oil changes and such) is more on the diesel and yes it is, but it only eats up 2/3 of the fuel savings still saving 1/3. I do a lot of towing 14k (equipment and trailer, travel trailer, etc) and can easily put 200K plus on the diesel truck that the gas would have never done with the heavy towing. Now while towing the fuel savings is even greater the the gas. So diesel is not such a bad idea. JMO
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Old 06-08-2009, 11:40 AM   #9
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That was a true statement, and a valid concern back when the decisions they reference were made...I think there's a context issue here, either at LaNeve's fault, or the publication.

As for diesel itself....the new diesel emissions standards require these engines to be approx. $4000 more expensive than a similarly-powered gas engine...plus...coupled with the traditionally higher price of diesel, and a perceived dirty/noisey characteristic of the engine....not a lot of American consumers favor it.

I still think they should do it. Push hard into the market, and advertise like the devil...it'll catch on eventually, and they'll be the go-to company for it.
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Old 06-08-2009, 11:57 AM   #10
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That was a true statement, and a valid concern back when the decisions they reference were made...I think there's a context issue here, either at LaNeve's fault, or the publication.

As for diesel itself....the new diesel emissions standards require these engines to be approx. $4000 more expensive than a similarly-powered gas engine...plus...coupled with the traditionally higher price of diesel, and a perceived dirty/noisey characteristic of the engine....not a lot of American consumers favor it.

I still think they should do it. Push hard into the market, and advertise like the devil...it'll catch on eventually, and they'll be the go-to company for it.

That's an interesting point on the $4000 more per engine. I had heard the same number but I can't remember where. However VW is making a profit on their Jetta TDI and option for option it's only $1800 over the 2.5 5 cylinder (they won't disclose the actual profit, but apparently it's a tidy sum).

I wonder if that 4000 was before they had some systems in place to beat the new requirements?
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Old 06-08-2009, 12:10 PM   #11
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That's an interesting point on the $4000 more per engine. I had heard the same number but I can't remember where. However VW is making a profit on their Jetta TDI and option for option it's only $1800 over the 2.5 5 cylinder (they won't disclose the actual profit, but apparently it's a tidy sum).

I wonder if that 4000 was before they had some systems in place to beat the new requirements?
The new regulation went in to effect 2006, 2007 and some last year I think and the funny thing is that the Duramax was one of the first to get done with more HP/torque and little better MPG. I will have about $1500 this year in fuel costs savings. So $500 in actual savings after maintenance cost. Now speaking car's my friends TDI get like 50 mpg compared to my 34 mpg so the cost saving for him is almost double, due to the maintenance being more comparable with my car.
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Old 06-08-2009, 12:43 PM   #12
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The new regulation went in to effect 2006, 2007 and some last year I think and the funny thing is that the Duramax was one of the first to get done with more HP/torque and little better MPG. I will have about $1500 this year in fuel costs savings. So $500 in actual savings after maintenance cost. Now speaking car's my friends TDI get like 50 mpg compared to my 34 mpg so the cost saving for him is almost double, due to the maintenance being more comparable with my car.
Those TDI's are insane for mileage. That car is probably the most underrated for mpg of any car I've seen. Gov't gives them 30/41 but everyone I know who has one is pulling closer to 35/50 in honest mileage.
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Old 06-08-2009, 12:54 PM   #13
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Those TDI's are insane for mileage. That car is probably the most underrated for mpg of any car I've seen. Gov't gives them 30/41 but everyone I know who has one is pulling closer to 35/50 in honest mileage.
i love the Jetta TDI vs. Prius commercial
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Old 06-08-2009, 04:49 PM   #14
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Originally Posted by Design1stCode2nd View Post
There must be a reason over 50% of all cars sold in Europe are diesel. It needs to be investigated and I think GM is wrong in not doing so. Just read that the take rate on the new Jetta TDI is something like 34% which is significant for NA.
Since diesel is popular in Europe and has been for some time, a larger percentage of their refining capacity is oriented towards diesel. Their supply is strong so prices are generally lower for diesel in Europe. Growth in diesel popularity in the U.S. puts a strain on our more limited diesel production capability, putting upward pressure on prices. There's your reason.
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