Mercedes USA Projects 15% Share for Diesel SUVs

Despite the fact diesel is pricier than gasoline in the U.S. these days, Mercedes-Benz USA is confident its new Bluetec 50-state clean diesels will account for at least 15 percent of its SUV and cross-over sales.

Three new Bluetec vehicles go on sale in October with a new V-6 diesel: the 2009 320 ML crossover, GL SUV and R-class crossover (above).

The major reason for the diesels is fuel economy: A diesel is 20-33 percent more fuel efficient than a comparable gasoline model, a Mercedes executive said today, and the payback period is about two years faster than that of a hybrid gas-electric SUV.

Mercedes will charge a sticker premium of about $1,000 for its new diesels – comparable to what it charges on current diesel SUVs that can't be sold in eight states, Stephen Cannon, vice president of marketing for Mercedes-Benz USA, said at a press event in Vermont.

The premium for rival hybrids is upward of $3,000, he said. For example, the Lexus RX 400h all-wheel drive hybrid starts at $42,980, including shipping, while the RX 350 all-wheel drive starts at $39,865 – a difference of $3,115.

Luxury brands whose diesel models are coming in late 2008 and early 2009 aren't the only competition. Cannon said the Chevrolet Tahoe and Ford Escape hybrids also are rivals.

Final prices of the new Bluetec vehicles won't be disclosed until shortly before launch.

As Green Car Advisor reported last week, Mercedes is hoping the three new models will enable buyers to claim the same federal tax credit as is currently available to individuals who buy certain hybrid-electric vehicles.

The Environmental Protection Agency is considering Mercedes’ assertion that the Benzes should be in the same category as hybrids that qualify for the federal Alternative Motor Vehicle Credit. Mercedes officials seem confident the diesels will, in the eyes of the EPA, be seen as equally “clean” as hybrids.

Posted by

Scott Doggett June 30, 2008, 9:38 AM

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Diesel, Emissions, Fuel Economy, Mercedes-Benz