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NY AUTO SHOW OPENS

NY AUTO SHOW OPENS

NY Times * April 8, 2009

NEW YORK CITY -- Stefan Jacoby, President and CEO of Volkswagen Group of America, was the keynote speaker at the annual breakfast today at the opening of the NY International Auto Show at the Javits Center .

"We know fuel economy needs to improve," he said speaking for clean diesel over electric and hybrid technology this morning at the New York auto show.

Early pioneers of the automobile tried everything, he said, noting steam cars were the most popular cars at the first New York auto show in 1900.

"We are in a race with the competition to find the fuel of the future," he said.

Mr. Jacoby was clear, "VW is hitching its horse to the diesel because we have to be "realistic about the fuel of the future."

"VW was not giving up on the internal combustion engine," Mr. Jacoby said, emphasizing the ability of modern engines to operate in all temperature conditions. "We cannot say the same for battery-powered cars."

Mr. Jacoby said that technological improvements in clean diesel "will improve M.P.G." without incurring big expenses and cited the VW Jetta TDI, which has achieved 58 miles a gallon in testing. Other advancements will also help, including variable-valve timing, cylinder deactivation, improved aerodynamics, lighter materials, hybrid technologies and electronic traffic guidance. He said he thought 50 to 70 miles a gallon would be possible in the next 10 years.

"Some of the new technology is 20 years off," he said, clearly meaning electric-battery power and fuel-cell technology. "And we may find better options."

Mr. Jacoby then spoke in favor of tax incentives for buying diesel cars, as well as tax incentives to help replace older cars. "Half of the cars in the United States are 10 years old or older," he said. A cash for clunkers program, or "fleet modernization," as Mr. Jacoby called it, similar to what Germany has in place, would go a long way to help consumers, dealers, suppliers and the environment.

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