CLEVELAND, Aug. 10, 2017 /PRNewswire/ -- The global automotive diesel engine industry is currently in a state of flux. Major developments occur on almost a weekly basis, which makes understanding the multi-faceted industry difficult. Many automakers have scaled back their diesel engine operations and increased spending on electric model R&D. Others have doubled down on diesel technology. Most, if not all, of the uncertainty is due to emissions testing cheating scandals that have roiled the industry in recent years.
According to Freedonia Group analyst, Gleb Mytko, "…to be valuable, any discussion of the industry must be detail-oriented, taking into account developments in both different countries and industry segments."
In late July 2017, Germany ordered the recall of more than 22,000 Porsche Cayenne diesel models after inspectors working for its transport ministry found software that was used to mask nitrogen oxide (NOx) emissions and imposed a short-term registration ban. This was the most recent in a series of similar government actions around the world that have put manufacturers in a negative light and called into question the commercial viability of light automotive diesel technology. The defeat devices in Porsche's vehicles allowed the SUVs to run a "warm-up strategy" during testing, resulting in lower levels of NOx emissions. However, the software turned off automatically during normal driving. Just days before the recall, Porsche hinted that it may permanently transition away from diesel engines.
Earlier in July, Daimler's Mercedes-Benz subsidiary voluntarily recalled more than three million diesel cars in Europe in order to address concerns about emissions. The necessary software updates are expected to cost the company more than $250 million. Despite the recall, Dieter Zetsche, CEO of Daimler, stated that "diesel is worth fighting for" due to low levels of emissions and high performance. Zetsche sees "no reason to forgo the advantages."
Politicians and industry leaders in Germany, the leading supplier of automotive diesel engines globally, came together in the same month to try to save the country's automotive diesel engine industry. After the summit, participants announced plans to update the software of more than five million light motor vehicles to reduce NOx emissions. In the US, where diesel models account for a small share of light vehicle sales, GM plans to introduce versions of the Chevrolet Equinox and GMC Terrain SUVs later this year. Mazda will begin to offer a diesel version of its best-selling CX-5 SUV in the US as well.
Global Diesel Engine Market, written by Gleb Mytko, offers a nuanced analysis of the industry and provides forecasts through 2020. For more information, see: https://www.freedoniagroup.com/industry-study/global-diesel-engine-market-by-product-market-and-region-5th-edition-3488.htm
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, and market share information. Studies can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group