India Making E5 Mandatory in October 2006
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VW to Drop Diesels from MY2007 Lineup in US Due to Emissions Requirements

Vwdiesel06
VW diesel model sales Jan-Apr 2006.

The Detroit Free Press reports that Volkswagen of America will drop the diesel versions of the Jetta, Golf and Beetle models from its US line-up for the 2007 model year due to their inability to meet the new, incoming stricter emissions standards nationwide.

Currently, VW only sells its diesels in states covered by US EPA emissions requirements; the diesels do not meet the tougher California standards, and are not sold in California, Massachusetts, Maine, New York or Vermont. With the phase-in of the EPA Tier 2 standards that comes fully into effect this year, the US and the California standards are converging, however.

US EPA Tier 2 and CA LEV II Standards (g/mi)
Category 50,000 miles 120,000 miles
NOx PM CO HCHO NOx PM CO HCHO
EPA Bin 8 0.14 0.02 3.4 0.015 0.20 0.02 4.2 0.018
EPA Bin 5 0.05 0.01 3.4 0.015 0.07 0.01 4.2 0.018
CA LEV 0.05 0.01 3.4 0.015 0.07 0.01 4.2 0.018
CA ULEV 0.05 0.01 1.7 0.008 0.07 0.01 2.1 0.011

VW will offer a diesel version of its Touareg SUV in 2007, although monthly sales of the current diesel Touareg model have so far been in the single-digit range. VW, according to the Free Press report, also plans to build extra model year 2006 diesel Jettas, which it hopes to sell well into next year. A new “50-state” diesel Jetta should be available for the 2008 model year.

Diesels as a component of VW’s sales rose from 12% in 2003 and 2004, to 14% in 2005, and to 22.7% for the first four months of 2006. (Earlier post.)

“They are becoming a significant part of our business, so it’s disappointing,” [VW spokesman Steve] Keyes said. “If diesels continue to contribute 20%-22% of our sales, this has some significant impact on us.”

The removal of the VW diesel models from the MY2007 lineup will leave only DaimlerChrysler with a new diesel passenger car to sell into the US (E320 BLUETEC). (Earlier post.)

Honda recently announced it would introduce a Tier 2 Bin 5 compliant diesel in the US within the next three years, and has patented a new plasma-assisted catalytic NOx reduction system that may factor into its plans. (Earlier post.)

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