Unlike Europe, where diesel is the number one choice, American buyers still flock to gasoline when it comes to powering their cars, with even green-conscious buyers opting for gasoline-electric hybrids rather than ultra-efficient diesels.
Most of the major carmakers are planning to launch new hybrid vehicles over the next several years, and Toyota is so keen on the tech that it predicts it will cost no more to build a hybrid car than a conventional one in the not too distant future.
But at the moment, diesel manufacturers are the clear winner, as the oil-burners have a significant cost advantage over hybrids. Even when they’re fitted with complex and expensive exhaust after-treatment technologies required to keep in line with emissions standards, diesels are still cheaper to produce and more reliable. Diesel already has a huge following in Europe, and UBS points out that the European labels and a number of global suppliers stand to benefit significantly from increasing diesel sales in the US.