VW’s new diesels are headed to America, but too late?

Volkswagen's long-awaited new family of diesel engines has finally hit the road to the United States.

The powerful and fuel-efficient engines, which account for 63% of VW sales in Europe, have been absent from the automaker's U.S. lineup for more than a year.

Diesel buyers are among VW's most eager and enthusiastic owners in the United States, but they had to do without 2008 models because the automaker was caught flat-footed without engines that met U.S. emissions standards that took effect Jan. 1, 2007.

VW will rectify that by offering the engines, which have used less fuel than gasoline-electric hybrids in some driving tests, in two 2009 model year vehicles. Both models will wear VW's TDI badge, which stands for turbocharged direct injection, two of the technologies that make modern diesels cleaner and more powerful. The Jetta Sportwagen and sedan are already in showrooms. The Jetta scored 29 m.p.g. city/40 highway in EPA tests, up from 21 city/29 highway for the 2.5-liter gasoline engine.

But all for naught – with diesel fuel running 25% more expensive per gallon than gasoline, who wants a diesel anymore? Even if you get 20% better fuel mileage, what good is it if you are losing money. And to this day, not every service station sells diesel fuel. The high cost of diesel fuel has pretty much killed that market, except for trucks.