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Diesel is going the way of the steam engine very quickly. The fuel costs 25% more than gasoline both here and in europe. Any fuel economy benefit will be lost in the additional cost of the fuel. Diesel fuel takes more crude oil to produce than gasoline. With HCCI gasoline engines on the horizon and hybrid technology here today, diesel will remain the domain of heavy trucks, trains and generators. Even in that market, there are signs of people trying to switch away from the dirty, expensive fuel in favor of natural gas, LPG, GLT and small turbine engines.
The cost of cleaning up diesel exhaust to California standards is another barrier to entry.
In short, diesel is dead.
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