The Smart Fortwo was welcomed into the U.S. with open arms by financially and environmentally conscious consumers who love just how cute the little car is. With its 40 highway mpg EPA rating and even more attractive price tag, what more could a consumer want? Well, what about a smarter Ford for five? Enter the 2009 Fiesta ECOnetic, a sporty compact that seats five and gets a very smart 65 miles to the gallon.

With its innovative specs, it would seem the carmaker is addressing the demand for more fuel-efficient vehicles in place of their notorious gas guzzlers, but anyone who thought so may be living on a prayer. The Fiesta will appear in Ford showrooms starting in November, but only in Europe. Why? The car runs on diesel fuel, which has been almost shunned within the U.S. for being a stinky fuel for trailers and commercial trucks.

Diesel Fuel Uses & Refining

The majority of all semi-trucks, delivery vehicles, buses, ships, as well as farming and construction vehicles are equipped with diesel engines. Diesel fuel is refined from crude oil, with No. 2 distillate the primary source for diesel fuel consumed in the U.S. According to the Energy Information Administration (EIA), 9.2 gallons of diesel are produced from each barrel of crude oil, with most of the diesel fuel consumed in the U.S. refined in domestic refineries, and only 4.5 percent imported from Canada and the Virgin Islands.

A Pain in the Wallet

New EPA standards implemented in 2006 require lower levels of sulfur content in diesel fuels. Because diesel once had high levels of sulfur, emission standards and taxation were imposed on refineries to regulate the level of the element in diesel fuels. The extra process for doing so accounts for the hike in the price in places such as the U.S. and Australia, where diesel used to cost less, yet another reason Americans are weary. Additionally, costs of production include the cost of crude oil, refining process, marketing and distribution and retail station operation, according to the EIA, with taxes further increasing costs. The Federal excise tax on diesel fuel is about 6 cents higher per gallon in comparison to standard gas, but the amount depends on the region. And as with every consumer product, supply and demand influence the cost, and although the fuel isn’t in great demand by your average driver, it is the primary source of oil for heating.

Moreover, most foreign countries depend more on diesel fuel distillates; in fact, 35 to 40 percent of new vehicle models sold in Western Europe have diesel engines. These less contaminated diesel powered vehicles, with their higher energy-per-liter content and more proficient engines, account for much cleaner, environmentally friendly engines that are 30 percent more fuel efficient. In times like these, it is just what the U.S. needs.

An American Comeback?

As crude oil prices remain high, so will the price of diesel fuel; however, as diesel powered engines prove themselves to be cleaner and more fuel efficient, the aforementioned financially and environmentally conscious consumers may shift their attention away from the ever-popular hybrid. Volkswagen already introduced the 2009 Jetta BlueTDI sedans and SportWagens. Mercedez-Benz will follow with the ML320 Bluetec, as will carmakers BMW, Audi, Nissan and Honda. If Ford executives don’t act fast, the company may find itself a big loser against its competition – again.