Volkswagen says that US consumers are embracing diesel models, pointing to record sales amid rising petrol prices.

Traditional American vehicles such as the SUV are being traded in for lighter models and diesel models, as the impact of Hurricane Katrina on the domestic petrol market continues to make waves in the automotive sector.

Len Hunt, who heads up VW's brand said that diesel's fuel economy – said to be up to 40 per cent better than standard fuel – is helping to draw customers in.

Already VW is looking for additional engines for its new Jetta car as it seeks to cater for a marked increase in demand.

"There has been a massive interest in demand for the Jetta diesel,' Hunt told Bloomberg.

"Initially we thought diesel demand might be 15 per cent of the Jetta sales in the US and it's more than 20 per cent already and rising. It was under way before, but Katrina has accelerated it.'

Meanwhile, DaimlerChrysler AG says that it too is seeing a flurry of interest in its diesel models, namely the Jeep Liberty SUV and Mercedes E-Class sedan.

Speaking at the Frankfurt International Motor Show, US Mercedes chief Paul Halata agreed that the diesel market was taking off, commenting: "Diesel has to be part of the answer."

Earlier this month platinum number one Angloplat suggested that the diesel market could be about to ignite in the US.

Chief executive Ralph Havenstein identified room for major growth in the US diesel market, as more consumers look to cope with increasingly volatile petrol prices.


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