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Nissan Plans Clean Diesel for U.S.

April 18, 2007

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Nissan Motor Co. Ltd. will launch its first clean diesel vehicle in the United States in 2010, according to CEO Carlos Ghosn. The company already produces clean diesel technology in its cars sold in Europe.

Ghosen spoke to the Council on Foreign Relations meeting in Washington, D.C.

"We are very confident about the potential benefits," Ghosn said, referring to growing U.S. demands to increase fuel efficiency and reduce greenhouse gases.

"The launch of the Maxima will mark the start of a broader diesel strategy in the U.S.," he said.

Federal regulators have implemented tighter emissions standards for diesel engines while requiring new ultra-low sulfur diesel fuel. The fuel and clean diesel technology work in tandem to reduce emissions. In 2010, diesel engines will be required to emit about 90 percent less nitrogen oxide.

J.D. Power and Associates has estimated that diesels will grow from 3.6 percent of the U.S. market to about 9 percent by 2013.

Nissan is Japan's third-largest automaker. Ghosn has steered his company away from hybrid vehicles because he considers the production costs to be too high and the profit margins too thin.

The Nissan Maxima diesel will get roughly 30 percent better fuel economy than the gasoline version but will also carry a higher cost, similar to that of a hybrid.

Honda has reported that it will sell an unspecified diesel model in the United States in 2009. Hyundai’s U.S. chief operating officer said earlier this month that he wanted to bring diesel models to the U.S. as well.

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