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Dr. Z's Diesel Report: The Future of Oil-Burners in Today's Market
Mercedes-Benz's Diesel Dilemma: Dr. Zetsche's Candid Perspective
At the 2018 Detroit Auto Show, MotorVero secured an exclusive interview with Dr. Dieter Zetsche, then-CEO of Daimler AG and head of Mercedes-Benz, regarding the future of diesel technology in the American market. This conversation occurred during a pivotal moment for diesel powertrains, following the Volkswagen emissions scandal and amid tightening global emissions regulations.
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The State of Diesel in 2018
When asked about diesel's role in Mercedes' U.S. product portfolio, Dr. Zetsche offered nuanced insights:
Key Discussion Points:
- Market Realities: Diesel sales had declined to just 0.6% of U.S. passenger vehicle sales by 2018
- Regulatory Climate: Stricter emissions testing protocols being implemented post-Dieselgate
- Consumer Perception: Growing skepticism about diesel's environmental benefits
- Product Strategy: Mercedes' increasing investment in EQ electric vehicle sub-brand
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Five Critical Takeaways from Dr. Z's Comments
1. Diesel's Niche Future
Zetsche acknowledged diesel would become increasingly specialized - ideal for SUVs like the GLE and GL where torque and range matter most, but less relevant for sedans and compact vehicles.
2. Technology Investments
Mercedes was spending heavily on clean diesel tech (AdBlue systems, particulate filters) while simultaneously accelerating electric vehicle development.
3. The Compliance Challenge
Meeting both U.S. and EU emissions standards was becoming exponentially more difficult and expensive for diesel powertrains.
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4. Customer Education Gap
Zetsche noted most consumers didn't understand modern diesel's efficiency advantages versus gasoline hybrids.
5. The Electric Future
The interview revealed Mercedes' expectation that by 2025, electrified powertrains would surpass diesel in their lineup.
How Mercedes' Diesel Strategy Evolved
In the years following this interview, Mercedes-Benz made several strategic shifts:
- 2019: Discontinued diesel options for C-Class and E-Class sedans in U.S.
- 2020: Introduced EQS as first all-electric luxury sedan
- 2021: Announced goal to go all-electric by 2030 where market conditions allow
- 2022: Ended diesel passenger car sales in North America
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Current Diesel Landscape for Luxury Automakers
As of 2024, the premium automotive sector has largely moved beyond diesel:
- Mercedes-Benz: No diesel passenger vehicles in U.S. market
- BMW: Offers one diesel model (X5 xDrive40d) as special order
- Audi: Completely phased out U.S. diesel offerings
- Porsche: Discontinued all diesel models globally in 2018
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Dr. Zetsche's 2018 perspective proved remarkably accurate - diesel became a transitional technology as the industry shifted toward electrification. Mercedes' balanced approach of maintaining diesel expertise while aggressively developing EVs positioned them well for this transformation.
Lessons for Today's Powertrain Debates
This historical perspective offers valuable insights for current automotive technology discussions:
- Major technology shifts often happen faster than predicted
- Regulatory changes can rapidly alter product viability
- Consumer perception matters as much as technical merits
- Successful automakers hedge their technology bets
Dr. Zetsche's candid assessment during this 2018 interview revealed the careful calculations luxury automakers must make when navigating powertrain transitions - lessons that remain relevant as the industry confronts its electric future.
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Last Updated On Oct, 08-2025