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A sporty subcompact that seats 5, offers a navigation system and gets 65 miles to the gallon? The car is made by Ford, known for lumbering gas hogs. Ford's 2009 Fiesta ECOnetic goes on sale in November. Even though it can transform Ford's image and help it compete with Toyota and Honda in its home market, the company will sell the little fuel sipper only in Europe. It can't be sold in the US because it runs on deisel. Taxes aimed at commercial trucks mean diesel costs from 40 cents to $1 more per gallon than gasoline. Diesel vehicles now hitting the market with pollution-fighting technology are even cleaner than gasoline-powered cars, and at least 30% more fuel-efficient. Mercedes-Benz by next year will have three cars it markets as BlueTec. Even companies which long opposed diesel cars plan to introduce them in the US in 2010. The risk to Ford is that the fuel could take off, leaving the carmaker to play catch-up.
This article was reported and written by David Kiley for BusinessWeek.
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