No loan for you!

I was just reading an article yesterday about Ford offering the Fiesta in Europe that gets 65 miles per gallon. (Kiley 2008) They claim it would not be profitable here in the U.S., because it is clean diesel. I understand that diesel is more expensive than regular right now, but when put it into perspective, I think there is a market here.

If we assume the Fiesta has a 11.9-gallon tank at a national average of $4.02 per gallon, it would be $47.84 for a full tank of diesel. (DOE 2008) That tank will yield 773.5 miles. In comparison, the Toyota Prius Hybrid gets around 47 mpg, at a national average of $3.84, and the tank is 11.9 gallons for a cost of $45.70. (Edmunds.com 2008) That tank costs $2.14 less, but loses 221 miles per tank.

Based on the demand for the Prius in the U.S., I feel reasonably confident Ford could make the Fiesta work in this market.

Department of Energy. Gasoline and Diesel Fuel Update as of 15 September 2008. Retrieved on 16 September 2008, from the World Wide Web: http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp

Edmunds.com. 2008 Toyota Prius Base Model. (2008). Retrieved on 16 September 2008, from the World Wide Web: http://www.edmunds.com/new/2008/toyota/prius/100920099/researchlanding.html

Kiley, David. Business Week. The 65 mpg Ford the U.S. Can’t Have. (2008). Retrieved on 16 September 2008, from the World Wide Web: http://www.businessweek.com/magazine/content/08_37/b4099060491065.htm?chan=rss_topStories_ssi_5