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Ford shelves diesel Focus for North America due to cost concerns

By AMY WILSON | Automotive News

DETROIT - Ford Motor Co.'s development efforts for a diesel Ford Focus for North America are on the back burner.

New COO Jim Padilla says the business case for diesel-powered small cars doesn't work. Diesel engines are costly because they have high-pressure fuel systems and need exhaust equipment required to meet pending U.S. emissions regulations.

"Do you think you can float that on the back of a C car (Focus-sized) in North America?" Padilla said. "The cost is just too high."

Ford has toyed with bringing a diesel Focus to the United States for several years. Last year President Nick Scheele said the automaker needs to introduce a diesel Focus for U.S. sale, even if the volume is small. Such a move would be akin to DaimlerChrysler AG's test of diesel acceptance with the introduction of a diesel-powered Jeep Liberty SUV this year.

But Padilla's comments, made in a May 4 interview, indicate that a diesel Focus for the United States may never happen - or may take several more years at least.

Volkswagen sells a diesel Jetta small car in the United States, but its base sticker is $19,245 - $2,925 more than the uplevel four-door Focus ZTS. The prices include destination charges.

Ford sells a diesel Focus in Europe, where diesel technology is more widespread. European consumers prefer small cars and are willing to pay more for them than U.S. consumers.

Selling a diesel Focus in the United States also is more complicated than just adopting the European version. U.S. emissions regulations get tougher after 2007 and would load even more cost on a diesel Focus, Padilla said.

A better direction for diesel expansion is trucks, he said. The automaker sells diesel F-250 and F-350 pickups and a diesel Excursion SUV in the United States. Ford plans to add a V-6 diesel to the F-150 pickup and Expedition SUV this decade.

Ford's North American diesel team - formed last year with more than 50 Ford diesel engineers - is concentrating primarily on trucks, said Phil Martens, Ford's group vice president of product creation. Ford is hiring people from outside the company and transferring existing personnel to expand that team.

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Stacy94PGT
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.

My next Ford.....