Daimler Chrysler begins diesel offensive in Japan

BUSINESS NEWS, Tokyo - Daimler Chrysler AG has established another front in its global diesel offensive with a push into Japan.

Hans Tempel, president of Daimler Chrysler Japan, on Monday in Tokyo presented the new E Class Mercedes, which offers a diesel alternative with its E320 CDI model.

The introduction of the E Class with its ''Clean Diesel Technology' represents a milestone for the automobile market in Japan,' Tempel said.

Japan has been a tough nut to crack for diesel carmakers because many of its residents regard diesel cars as slow, loud and sooty, but Germany-based Daimler Chrysler aims to overcome this hurdle with the help of rising oil prices and Japan's discussions over lowering greenhouse-gas emissions. Diesel, for example, is 20 per cent cheaper than petrol in Japan.

Last year, the sales of diesel cars amounted to a mere 0.2 per cent of the country's total car sales, but the Yano Research Institute said it expected that percentage to rise to 11 per cent by 2015.

The only diesel model sold in Japan today is Toyota's Prado Land Cruiser sports utility vehicle, and Daimler Chrysler itself took its last diesel vehicle off the market in 2002 before its launch of the E320 CDI.

'German diesel technology has always led Europe and the world,' said Jochen Legewie, representative of the German Association of the Automotive Industry in Japan. 'It is, therefore, only consistent that a German premium automaker like Mercedes Benz is the first to introduce the new Clean Diesel Technology to Japan.'

Until now, however, hybrid cars have been considered the most environmentally friendly alternative in Japan, but diesel's return to the country caused industry analysts to speculate whether other carmakers would follow Daimler Chrysler's lead and introduce their own diesel models. Many expected Japan's leaders in the industry, like Toyota and Honda, to follow as new emissions standards were due to be enacted in 2009.