Study: Diesel Vehicles Have Lower Cost Of Ownership Than Gas Vehicles

A study conducted by the University of Michigan Transportation Research Institute has shown that over a lifetime of ownership, diesel-fueled vehicles tend to have a lower cost of ownership than conventional gasoline-fueled vehicles.

Owners of diesel-powered vehicles saved $2,000 to $6,000 after just three to five years of ownership, making up most if not all of the price premium many diesel vehicles carry. In fact, that extra cost is even factored into the study. The study is titled: “Total Cost of Ownership: A Gas Versus Diesel Comparison”, and it was conducted for Robert Bosch LLC.

The results of the study were released at the 2013 Alternative Clean Transportation Expo in Washington D.C., and come to the following conclusion.

“Overall, the results of our analyses show that diesel vehicles provide owners with a TCO (total cost of ownership) that is less than that of the gas versions of the same vehicles. The estimates of savings for three and five years of ownership vary from a low of $67 in three years to a high of $15,619 in five years, but most of the savings are in the $2,000 to $6,000 range, which also include the extra cost that is usually added to the diesel version of a vehicle.”

Some people are understandably concerned that diesel-powered vehicles won’t save much money, if any due to high diesel prices. With cars like the Chevy Cruze Diesel carrying a $6,000 premium over a comparable gas model, it is understandable that some people are skeptical of diesel cars. Then again, a diesel-powered Volkswagen Passat TDI just accomplished nearly 78 mpg on an 8,000 mile, cross country trip, something your average gas-powered car can only dream of. No wonder diesel sales are up.

Yhanks to superior fuel economy and lower maintenance costs, diesel vehicles can prove to be real money-savers, especially for anyone who does a lot of driving, and this study backs up what diesel owners have known for decades.

Source: Autoblog Green

US auto dealers sue Mahindra & Mahindra over diesel pickup and SUVs

A group of US automobile dealers filed a lawsuit (Case 1:12-cv-01935-TWT) on 4 June with the United States District Court, Northern District Of Georgia, Atlanta Division accusing the Indian truck manufacturer Mahindra & Mahindra, Ltd. and its US counterpart of fraud, misrepresentation, and conspiracy. The lawsuit alleges that Mahindra duped US auto dealers with promises of diesel light trucks and SUVS and then walked away with more than $60 million in cash and trade secrets.

Mahindra told the dealers that its light trucks and SUVs were ready for delivery to the US market. However, Mahindra intentionally delayed certification of its vehicles after obtaining the dealership fees and trade secrets, and began pursuing other partners in the U.S. and elsewhere in clear violation of their commitments.

—attorney Michael Diaz, the managing partner of Miami-based Diaz Reus & Targ

The mass tort lawsuit was filed in U.S. District Court in Atlanta (#KH199170-3) against Mahindra & Mahindra, Ltd, and Mahindra USA, Inc. by dealerships in New Hampshire, Florida, California, New Jersey, and Washington. Dealers across the country paid initial dealership fees, undertook marketing on Mahindra’s behalf, built Mahindra showrooms, display platforms and showcases, and hired additional personnel, all at Mahindra’s urging, according to the lawsuit.
Mahindra obtained $9.5 million in fees from the dealers, according to the lawsuit. For two years following, Mahindra continued to reassure the US dealers that its certification process was on target, while in fact it was delaying submitting its documentation to regulators as a pretext for terminating its agreements, according to Diaz.
In a statement on its website, Mahindra & Mahindra said that it unequivocally denies all allegations of fraud, misrepresentation and conspiracy.