Car manufacturers are unveiling an increasing array of new, fuel-efficient diesel engines.

Five manufacturers at the North American International Auto Show have announced plans to produce diesel models capable of providing competition to hybrids in the fuel economy stakes.

Mercedes-Benz announced it would unveil the first of five new diesel models this autumn with its E 320 sedan, which will use DaimlerChrysler AG's BlueTec engine.

Meanwhile Honda, BMW, Nissan and the Chrysler group have all stated their intentions to produce new diesels within the next four years.

Tough emissions standards in many US states have forced companies to provide far cleaner diesel vehicles than in the past but not all companies are keen on production of diesel cars.

General Motors (GM) is set to wait and see if the new wave of diesel cars is popular with consumers before beginning its own programme.

Tom Stephens, GM's group vice president for global powertrain, said: "We do not see an affordable way to implement that technology."

"But if the market demands it, I'm there."

JD Power forecasts that US diesel sales for light vehicles will rise to nine per cent by 2012, up from 3.2 per cent last year.


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