VW has made big bucks in fuel crises past by offering diesel options where others had none. And though Wolfsburg has always charged a premium for its oil-burners, cheap-and-cheerful was the name of the TDI game back when it took an OPEC embargo to make Americans think about efficiency. Well, the 70's are over, man. VW's new Jetta TDI starts at $21,990 for the sedan, and $23,590 for the wagon. Er, SportWagon. That's five large more than a base sedan, and a $4,500 premium for the wagon. And not only are VW charging more for their diesels, they're also hyping non-EPA mileage ratings to claim 38/44 mpg in city and highway driving respectively. If, for some crazy reason, you want an apples-to-apples comparison to any other product on the market, the EPA ratings that everyone else seems to live with rate the Jetta TDI at 29/40 mpg. Factor in the fact that diesel prices have doubled in most markets over the last year, and you have a spin-free idea of how economical VW's TDI offering really is. Though the acolytes of Rudolph Diesel claim that battery replacement costs for hybrids give the TDI an edge, those costs are going down , while diesel prices continue to climb in most areas. The TDI will still serve well in those coastal enclaves where "powered by biodiesel" and grateful dead-affiliated bumper stickers offer TDI owners social status commensurate to the price premiums they paid. Otherwise, this baby has been priced right out of the market.

We've already documented the sad plight of truckers struggling to cope with rising diesel prices. Now Newsweek reports that profit-squeezed truckers have cut back on their, uh, entertainment expenses. "According to the U.S. Energy Information Administration, diesel on the West Coast now costs $4.87 per gallon. That means truckers could easily spend $1,000 to fill up their tanks, leaving them with little extra cash and less likely to take a detour. For bordello owners, relocating to more central locations is impossible. Under Nevada law, brothels can only operate in counties with fewer than 400,000 residents." For example, The Moonlite Bunny Ranch (a third less Bunny than our regular Ranch?) is a 72-mile round trip from Reno, and none of it via the Interstate. Not to mince words: it's a long haul for a booty call. The Nevada Brothel Owners' Association reports that revenues are down by 45 percent. John McCain's gas tax holiday can't come soon enough. So to speak.

Audi's nonstop testing of various R8 models, and announcement of all kinds of plans for different powerplants, has raised all manner of confusion and conflicting claims among normal, non-Rainmen. So we've put together a guide of exactly what Audi is doing with their Porsche-fighting sportscar. Keep in mind that while it is possible to list all the different versions, it's unlikely anyone can answer "why" without just saying "competitors offer choices." That they do, but keeping it simple might be nice. So now we bring you the straight dope. For now. Until Audi changes its plans. Again. Without further Audi-do:

Current R8 – 4.2 liter V8, 420 horsepower, 317 lb ft of torque. Similar to the engine in the much-loved RS4, but dry sump in the R8.

Other models in discussion:

– 5.2 liter V10, 500+? horsepower. The engine is believed to be derived from the Lamborghini Gallardo's V10. Previously they were testing a twin turbo version akin to what's in the Audi RS6, but the prototype twin-turbo V10 car caught fire and burned to dust last year.

-6.0 liter V12 TDI, 500 horsepower, 737 lb ft of torque. This diesel supercar was in the Audi R8 Le Mans concept car from the Geneva and Detroit auto shows. And Audi just a few weeks ago confirmed that the monster oil burner will not go into production.

-4.2 liter V8 TDI, 326 hp, 550 lb ft of torque. Unlike the V12, this diesel sports car IS going into production, according to Michael Dick of Audi.

Stimt? The Porsche Cayenne is a gas pig built by a company that doesn't have an economy car in its lineup, in a world where automotive companies who don't sell an economy car– sorry, a low CO2-emitting vehicle– get the living crap taxed– sorry, "fined" out of them. So it's no wonder that Automobilewoche is reporting that Porsche is looking to fit their SUV with an oil burner for 2009. Porschephiles will know that this is not a new story. But it's a good one– as Porsche has previously denied rumors of a hybrid and/or a diesel Cayenne. Automobilwoche says not only is Porsche getting down and diesel, but they're looking to Audi to provide the Sultans of Stuttgart with 15k 240hp V6 diesel engines (up from 10k). It seems Porsche planned to introduce the diesel version in January 2009– along with the face-lifted Boxster– but postponed the launch so as not to steal the brave new Boxster's thunder.

Pickuptrucks.com reports that skyrocketing diesel prices have hit oil burners' resale values harder than their gas-powered counterparts. According to Blackbook, the value of 2005-07, 3/4 to one-ton diesel pickups have dropped nearly $6k since January; gas-engined models lost only $3k. Up until the recent fuel-price unpleasantness, lower diesel prices and higher efficiency justified the higher entry cost to diesel ownership. Today, that higher initial cost– increased by new emissions standards compliance– has taken diesel sales (and resale values) from "suck" to "craptastic." Hundreds of Workers building Cummins, Duramax and Powerstroke diesel engines have been laid off either temporarily or permanently. Pickuptrucks.com tries valiantly to end on a happy note, suggesting that diesel prices could regain sanity if developing countries cut subsidies. There's also talk of a new generation of diesel half-ton pickups that might just rescue the day. Meanwhile, unless you have a fryolater to tank from, diesel is dead. Just ask the latest round of striking truckers…

There's an interesting juxtaposition in today's news about the forthcoming VW Golf. Motor Authority reports that Volkswagens sixth-generation Golf will offer standard stop-start technology in its efficiency-oriented Bluemotion versions. VW director of powertrain research Wolfgang Steiger reveals that the the Bluemotion is shooting for a 30 percent gain in efficiency, begging the question of whether Bluemotion trim will bring a hybrid drivetrain to the table. VW has reportedly ditched diesel-hybrid plans for a cheaper gas-electric unit. But Steiger only mentions a new range of 1.0 and 1.2-liter compact gas engines, with a possible forced-induction three-cylinder in the works. Either way, it's all a bit academic. Future US-market Rabbits will be developed separately, on cheaper platforms. Which is funny, because Auto Motor und Sport reports that the new "too-pricy-for-the-states" Golf costs nearly $2k less to produce than the outgoing model. Even with rising steel prices and a strong Euro, VW has managed to realize savings by reducing material costs, increasing volume and producing on a four-day work week. So, despite reducing the cost of building the new Golf, VW will be challenging Toyota in the US market with an even cheaper replacement for the Rabbit? With the diesel Jetta already behind the Prius curve, VW should bite the bullet and bring the Euro-Golf stateside, and proliferate stop-start across its US model line. Or give up its goal of taking on Toyota NA for volume sales.

The New York Times reports that the diesel version of the European market Honda Accord is headed for your Acura dealer as a TSX in 2009. Bosch, a key supplier, "sneaked" a demonstration version of the Honda Diesel into The Big Apple, where The Old Gray Lady got her hands on it. With no official EPA test numbers to speak of, the Times achieved "a remarkable 53 miles a gallon on the highway, 34 in the city and 44 in combined driving… including a bumper-to-bumper crawl through Manhattan." My personal TSX clocks-in at around 20 mpg in city driving and the 30s on the open highway; the Times' numbers a big jump in the right direction. Honda might be onto something here. Unlike Mercedes' Cailfornia-compliant oil burner, the Honda's mill doesn't require a urea tank. So much for German Engineering Superiority. If the final US market TSX can hit those fuel economy numbers… the diesel fuel price premium will still kneecap sales. The $5.13/gallon question is, since when is diesel the upmarket alternative to hybrids (including the ill-fated Mercedes 300SD)? The high-end Accord V6 hybrid was a flop. Will the TSX Diesel face the same fate? 

It used to be that Europeans could get diesel for a lot less Euros than regular petrol/gas. Combined with increased fuel economy, consumers had every incentive to pony-up for the oil burning engine. Now that the cost of diesel has increased substantially, and thanks to direct injection, turbocharging, and other high tech features; gas engines are regaining lost territory. (TTAC's Paul Neidermeyer is on record saying gas, not diesel, is the future.) A sign of the times: the hot Skoda Fabia– currently a 1.9 liter 130 horsepower turbodiesel praised by no less than Jeremy Clarkson— is ditching diesel. The next gen vRS model will shelter VW's twincharger turbo and supercharged 1.4-liter unit, with an estimated 174 horses. Unfortunately, it likely cannot match the old model's 228 lb ft of torque at 1900 rpm. For European buyers, this is really small news (though good small news). The bigger message: even European brands selling cars in Europe are moving away from diesel. (source: Škoda)

The price of a gallon of diesel has risen two bucks in a year, from $2.50 to $4.50. The escalation threatens to decimate the U.S. trucking industry. The New York Times tells the tale: "More than 45,000 vehicles, or 3 percent of the tractor fleet, have disappeared from the highways since early last year, according to America’s Commercial Transportation Research in Columbus, Ind." And we're not just talking about the small independents, neither. "In the first quarter, 935 of these larger operators [five trucks or more] shut down, the American Trucking Association reports, up from 385 a year earlier and the highest quarterly failure rate since the 2001 recession." The knock-on effect: the used truck market is glutted with abandoned rigs. "There are so many used trucks in dealer lots now that some of the larger dealers have stopped buying them,” said salesman James McCormack of www.truckertotrucker.com. “From what dealers tell me, exports have become their best outlet, particularly to Russia.” High diesel prices, a weak dollar and thousands of U.S. trucks are shipped to our former Communist enemy. Ain't capitalism grand?

The Center for Automotive Research (CAR) at Gelsenkirchen University of Applied Sciences has released a report which claims that 2007 will have been the historical high-water mark for diesel sales in Germany. Reported in Auto Motor Und Sport, the study shows a steady climb in diesel market share over the last decade, from 14.6 percent in 1995 to 47.7 percent in 2007. But CAR calculates that market share will retreat to 44 percent by 2010 before diving back to 30 percent by 2020. With US diesel sales still a ways from a predicted 15 percent market share by 2015, Germany is still the major, which is why the projected decline is so significant. The underlying causes are simply related to the shrinking economic incentives for buying diesels. Diesel has traditionally been cheaper than gasoline in Germany, but that difference is slipping away and in America diesel is significantly more expensive. Additionally, diesels require increasingly complex particle filters and exhaust cleaners to meet new emissions standards, driving up purchase costs. Finally, gas engines are simply becoming more efficient, especially as hybrid drivetrains proliferate. In short, if diesel's most favored market is moving away from the stuff, this trend will only grow. With news coming in that VW's new Jetta TDI won't be as efficient as the Prius, don't expect diesel sales to jump stateside anytime soon.

Expectations for VW's 2009 "60mpg" TDI Jetta "Prius killer" ran high. And VW threw plenty of (diesel) fuel on the heated passions of oil burner fans. Press materials just a few weeks ago predicted EPA city mileage numbers "in the 40's" and highway mileage "as high as 60mpg." The EPA has released the numbers and they…suck. We're talking 29/40 for the DSG version; 30/40 for the stick. Combined mileage: 34 mpg. The Prius' 46mpg combined mileage is a whopping 35 percent higher. Diesel fuel is running 20 percent higher than unleaded. Annual fuel costs for the two (15k miles): Jetta TDI: $2010; Prius: $1,240. Don't say I didn't tell you so. But I'll repeat the key part: to comply with US emissions regs, diesels lose five percentage points off their efficiency advantage over gas engines. Throw in a global diesel fuel shortage, and its diesel RIP. No word yet on how much VW will charge for the TDI option. 

Since winning Le Mans with a diesel R10, Audi has been surprisingly shy about emphasizing diesel motorsports as part of its brand. That's starting to change; Audi's been showing versions of its R8 supercar with a 6.0-liter diesel V12 at auto shows. Und now… the A3 TDI Clubsport. This oil burning trackmeister is set to debut at the Lake Warther tour in Austria. Powered by an uprated version Audi's 2.0-liter TDI four-banger– making mit ze 224-hp and 332 lb-ft of torque– the hot hatch should scoot to 60 mph in 6.6 seconds. Quattro all wheel drive, a six-speed transmission and six-piston ceramic brakes round out the formidable platform. The usual boy-racer accoutrements adorn the exterior, from giant bolt-on wheel arches to a DTM-style spoiler, to 20" rims and a custom paint scheme. You want to buy one? Dream on– although Audi is prepping a roofless TT Clubsport for sale in 2010. With a TDI TT on sale now in Europe, there's a chance the TT Clubsport will offer the breathed-on diesel as an option. Or better yet, Audi may actually build the A3 TDI Clubsport as part of a whole line of Clubsport models. Normal, S-line, S and Clubsport. You pays you money, you take your depreciation…

Autoblog is asking if the "Volkswagen Tiguan Diesel Launch Delayed in US?" I'm happy to answer that question for them. No, it's not delayed. If your flight is supposed to get in at 2 PM, the fact that it is not getting in at 1 PM doesn't make it delayed. It makes 2 PM the time the plane is supposed to land. Autoblog is hypothesizing that there probably won't be a 2009 model year VW Tiguan with the 2.0-liter TDI engine. This was the plan was all along– not that it's a good plan, mind you. But Europe is really, really loving VW's 2.0-liter TDI engine right now, especially in the Tiguan. VW can't build 'em fast enough. So while the Tiguan 2.0-liter TDI would be a somewhat hit here in the States, it's a grand slam home run (game-winning penalty kick?) for VW in Europe.The 2.0-liter TDI engine will eventually make it stateside in the Jetta and Jetta Sportswagon. But you knew that back in March, when I asked one of VW's execs, and then passed the news along to you.

The First Ever Second-Generation Biofuel Plant established in Saxony, Germany opened April. As we reported previously, a German/Dutch joint venture named Choren claims they'll soon be converting wood scraps into 13k tons per year of "SunDiesel." The list of claims for this venture is long: 90 percent fewer CO2 emissions than conventional diesel, less dependence on oil imports and less disturbance to world food markets than conventional biodiesel. Meanwhile… Autobild (print edition) says complex production processes means it will cost about one Euro to produce a liter of SunDiesel. Choren responded to the news by pointing-out that their first plant is not "optimized for low production costs." What else, then? never mind. Choren is busy talking-up its large-scale plant, set to begin production in 2013 in Brandenburg, Germany. That new factory would/should/could produce around 200k tons/year of SunDiesel, at a cheaper price. That's enough fuel to satisfy 0.6 percent of Germany's demand for diesel.

Desperate times lead to desperate measures, and Chrysler is about as desperate as they come. Or is that deceptive? First, the facts as we know then: ChryCo's just announced a new sales incentive program in "response to direct customer feedback citing the prospect of rising gas prices as a top concern." So now, anyone buying a "new and unused" Chrysler product in the U.S. can enroll in the "Let's Refuel America" promotion. They'll receive a gas card that lowers their price for gas to $2.99/gallon for three years. Participating customers will receive a card (with a PIN number) for deployment "at an eligible gas station." The card's good for regular gas, E85 or diesel fuel. After fueling is complete, the customer's personal credit card is billed at the rate of $2.99/gallon. The promotion runs until June 2, 2008. There's more fine print, but here's the big kahuna: Chrysler buyers get the card in lieu of "other incentives." Do the math, compare gas cash saved over three years vs. money not saved by discount, and, as the bard once said, "things are not always what they seem; milk can masquerade as cream." Anyone want to make any guesses on how much this deal will end-up costing Chryslerberus? Oh, and don't forget depreciation. Once ChryCo files for C11 the cards will be worthless. Of course, at that point, trade-in values won't be anything to write home about either…