North America is warming to diesel technology, according to a leading automotive industry figure in the US.

Volkswagen's North American chief Volker Steinwascher says that even though his firm has seen its sales fall in the region, diesel is proving popular.

The company expects to record growth of around 14 per cent in the diesel market for 2004 in comparison to the previous year, with Steinwascher pointing to a growing acceptance of the technology in North America and its economy.

"Sales are dependent, more or less, on the price differential between gas and diesel," he told Automotive News Europe.

"The more gas prices go up, the more interest there is for the customer to buy a diesel."

While being keen not to "discredit hybrids in any way", Mr Steinwascher says that the combination of power, clean fuel and economy is an attractive one to many Americans, emphasising Volkswagen's commitment to furthering the cars' efficacy.

"Since 1988 we have lowered our overall emission by 80 per cent," he commented.

"Imagine where we will be in just five more years. We are very bullish on technology and feel strongly that by the time the Tier 2 Bin 5 standards come in 2007 we will be ready."

The US diesel market is less mature than its European counterpart, with the technology relatively unfamiliar to many Americans and perceived as outdated, but the development of new clean air technology and the changing face of the market could see the region begin to follow the trend.

Earlier this week figures from the Society of Motor Manufacturers and Traders (SMMT) pointed to an upturn in the diesel sector in the UK.

The organisation said demand had "continued to surge", with total sales of diesel vehicles hitting a record 835,334 units during 2004, denoting a market share of more than 32 per cent.