German carmakers Mercedes-Benz and Volkswagen are leading an assault on the largely untapped North American market for diesel cars with the launch of the latest versions of the E-Class sedan and the Touareg SUV. The renewed attack comes as ultra-low sulphur diesel (ULSD) fuel becomes available widely in the US for the first time as part of a package of environmental measures for 2007. Aside from a traditional preference for gasoline and poor experiences with compression ignition engines in the past, diesel has been held back in North America by emissions legislation and fuel quality.
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