Clean Diesel Technology Faces Consumer and Regulatory Challenges/Volkswagen Faces Emissions Scandal, Business and Industry Trends Analysis

During the early 1980s, when U.S. drivers were still reeling from Arab oil embargos and fuel rationing, diesel-powered cars were particularly popular in the U.S.  Mercedes-Benz made a very high-quality line of diesels at that time, and about 75% of its cars sold in the U.S. were diesel-powered.  Diesel cars unfortunately proved to be noisy, polluting and, in some cases, expensive to maintain.  American consumers drifted away from diesel for many years, particularly during the 1990s when gasoline was readily available at reasonable prices.  In Western Europe, diesels ranging from Volkswagens to BMWs account for a very large share of…

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