Daimler AG, the company that owns smart and Mercedes-Benz, has announced it will not continue the process of requesting the approval to sell diesel-engined passenger cars in the USA for the 2017 model year.
The German company has encountered delays in the process that started last year, and it appears that these have become too much of a hassle when compared to the sales results that could have been obtained from that segment.
In spite of these setbacks, the conglomerate has not announced a decision to exit the American market for diesel-engined automobiles.
The increased scrutiny of diesel-engined passenger car approval in the USA came after Volkswagen’s cheating scheme became public, which led to delays for BMW and Mercedes-Benz, among others. Moreover, the three-pointed-star brand was also scrutinized by authorities over its emissions control devices, but no illegal systems were found.
Back in October 2016, Daimler officials told Automotive News that it wants to get the U.S. government’s approval to sell four diesel-engined models in the country for the 2017 model year.
Only four diesel passenger cars were offered in 2016 by Mercedes-Benz in the USA, but the new approvals involved all-new vehicles and refreshed versions of older products.
It is worth mentioning that diesel engines account for less than one percent of all U.S. sales for the brand, so it makes sense not to deal with the extra hassle and costs just to sell a small number of units.
Mercedes-Benz can afford to “miss out” on a few potential sales because it is doing well in global markets, and its portfolio is popular in the USA regardless of compression-ignited engines.
This April, the company did get the authorities to approve its Sprinter commercial van for sale in the USA with diesel engines, but even that result came after months of discussions. The same effort may not be justified for passenger cars that account for a small percentage of the brand’s yearly results.
In spite of these setbacks, the conglomerate has not announced a decision to exit the American market for diesel-engined automobiles.
The increased scrutiny of diesel-engined passenger car approval in the USA came after Volkswagen’s cheating scheme became public, which led to delays for BMW and Mercedes-Benz, among others. Moreover, the three-pointed-star brand was also scrutinized by authorities over its emissions control devices, but no illegal systems were found.
Back in October 2016, Daimler officials told Automotive News that it wants to get the U.S. government’s approval to sell four diesel-engined models in the country for the 2017 model year.
Only four diesel passenger cars were offered in 2016 by Mercedes-Benz in the USA, but the new approvals involved all-new vehicles and refreshed versions of older products.
It is worth mentioning that diesel engines account for less than one percent of all U.S. sales for the brand, so it makes sense not to deal with the extra hassle and costs just to sell a small number of units.
Mercedes-Benz can afford to “miss out” on a few potential sales because it is doing well in global markets, and its portfolio is popular in the USA regardless of compression-ignited engines.
This April, the company did get the authorities to approve its Sprinter commercial van for sale in the USA with diesel engines, but even that result came after months of discussions. The same effort may not be justified for passenger cars that account for a small percentage of the brand’s yearly results.