Industry Analysis Case Study

Diesel Dilemma in the US

OR

Abstract:
In 2004, diesel vehicles accounted for only 2% of the US auto market. In the US, diesel engines carried a bad image of being a ‘dirty fuel’. Though diesel engines offered better mileage they emitted more smog forming nitrogen oxides than gasoline engine which caused serious health problems. In order to bring back diesel in the US, several initiatives were taken by the federal government and the OEMs. In this regard, several regulations and standards were passed to reduce the diesel emission and to improve the quality of the diesel sold in the US. The case discusses about the difference between gasoline and diesel engines and reasons for the failure of diesel vehicles in the US. The case further highlights on the potential of diesel in the US market. The case also discusses about clean diesel and its acceptance in the US market.

Pedagogical Objectives:

• The importance of global warming and its impact on the automobile industry
• The state of the automobile industry in the US market with specific reference to diesel vehicles
• The initiatives taken by the Original Equipment Manufacturers(OEMs) in order to bring back diesel in the US market
• Discuss the various regulation passed by the federal government to offer clean diesel
• Will diesel be able to shed its dirty image in the US market?.

Keywords : Diesel Engine; Global Warming; Gasoline Engine; Original Equipment Manufacturers; Emission; Industry Analysis Case Study; Clean Diesel; Federal Regulations and Standards; Ford; GM; DaimlerChrysler; Miles per gallon; US car industry; Fuel efficiency; Miles traveled