Diesels are power players in the power plant challenge, as well. BMW, VW, and Mercedes all offer single rail, direct-injection diesels that will change your mind about these types of engines. These new machines are very fast and very quiet.

These new cars make me wonder: Are we underwriting these vehicles properly? Many companies look at engine displacement or offer discounts on diesels, as they have always been modest performers in the past. But with turbo chargers—and in the case of diesels, direct injections paired with a turbo—these cars can produce impressive horsepower. Combine that with fuel prices being so high, and the attraction of a diesel or a four-cylinder power plant is clear.

Because it has been so overused in the business world, I hesitate to use the phrase “paradigm shift,” but I believe this adequately describes a change of thinking that must occur here. We need to evaluate not only horsepower but also how these power plants with advanced transmissions can produce acceleration better than some muscle cars of the 1960s. I think the time has come to re-evaluate underwriting of these advanced vehicles.

Statements and opinions expressed in this blog are solely those of the author. They are not offered as and do not constitute legal advice or opinion of Mitchell International, Inc.