Thursday, August 05, 2004

Gas prices send automakers in two directions

Fuel prices have been all over the chart lately--mostly trending upwards. With the recent surge in the cost of a barrel of oil, most drivers are likely bracing for higher gas prices. Automakers are debating on how to mitigate the rising costs of gasoline:

Automakers remain divided on whether diesel or hybrid cars are the best way to improve fuel efficiency, and the split is often drawn along cultural lines.

All the major manufacturers are developing cleaner diesel engines, hybrids and hydrogen fuel cells. But companies are pushing harder on different technologies to get a leg up in meeting regulations that are becoming tougher around the world, and their views were represented in comments made at a management conference here on Wednesday.

Hybrids, while more environmentally friendly in their gas conservation, don't pan out for cost-effectiveness. Diesel vehicles, on the other hand, yield higher gas mileage and lower fuel prices (although by alot less than before). Could "Clean Diesel" someday displace Hybrid as the economically and ecologically friendly technology of choice?