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German Diesel Car Sales Surge in US as Automakers Expand Offerings

Volkswagen, BMW, Mercedes-Benz, Audi and Porsche have all reported double-digit growth in US diesel car sales, prompting a wave of new diesel model launches for 2013.

By Chris Wilson Updated
Four sedans in muted silver, gray and blue tones are parked outside a modern glass and white-panel building in daylight
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German carmakers Volkswagen, BMW, Mercedes-Benz, Audi and Porsche have posted double-digit growth in US diesel sales over the past 20 months, with several brands now accelerating their diesel rollouts to capitalise on demand.

Volkswagen led the charge, with diesels accounting for over 20% of its US sales in 2012. The Jetta Sportwagen, in particular, saw an 82% jump in diesel sales. Audi, part of the same group, is following suit with the introduction of the A8 TDI 3.0-litre V6, which promises an 800-mile range and 36 mpg. TDI versions of the A7 and A5 are also scheduled for US launch this year.

Automakers Add More Diesel Models for US Buyers

BMW, which has seen growing interest in its diesel offerings, confirmed plans to expand its diesel range across all vehicle segments in the US by 2025. Dan Creed, head of product planning for North America, said diesel engines are central to meeting federal fuel economy targets. Mercedes-Benz also regards diesel as a key part of its US portfolio, with plans to introduce a four-cylinder diesel engine to the American market.

Porsche reported that diesel models now account for 30% of Cayenne SUV sales in the US, though the company has no plans to offer diesel variants of the 911 or Boxster/Cayman sports cars. The diesel push is focused on larger vehicles, where buyers are especially sensitive to fuel costs and range.

Fuel Economy Drives Diesel Uptake

German automakers point to fuel economy as the main reason for the surge in diesel sales. Doug Skorupski, Volkswagen's manager of US product strategy, said fuel efficiency is the top priority for American customers. Diesel engines offer higher mpg than their petrol counterparts, and the latest turbocharged units bring performance in line with US expectations.

The US diesel market remains small compared to Europe, but the recent sales growth has encouraged manufacturers to expand their offerings. With federal fuel standards tightening, diesels are seen as a practical way to boost fleet economy without relying solely on hybrids or electric vehicles.

Diesel Model Expansion in 2013

  • Audi A8 TDI 3.0-litre V6 joins US line-up, with A7 and A5 TDI versions to follow.
  • BMW plans diesel variants in every US segment by 2025.
  • Mercedes-Benz to introduce a new four-cylinder diesel.
  • Porsche Cayenne diesel continues, but no plans for diesel 911 or Boxster/Cayman.

The expansion of diesel offerings is expected to continue as German brands respond to US consumer demand for more efficient vehicles. Whether this growth can be sustained as fuel prices and regulations shift remains to be seen, but for now, diesels are firmly back on the agenda for German automakers in America.

Volkswagen Jetta Sportwagen at the 2012 LA Auto Show
Volkswagen Jetta Sportwagen diesel sales rose 82% in the US in 2012.

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