Compared to the recent U.S. auto sales, which have been driving the U.S. economy for the past year, Europe’s sales numbers don’t seem all that encouraging. Four-month sales were still down 7 percent. Ford, PSA Peugeot Citroen was down 10 percent, and BMW was down 3 percent. The European market is struggling through a 20-year low point with analysts hoping that “the worst is over.”

Still, there are plenty of bright spots including a 10 percent increase in Volkswagen registrations as well as an 11 percent increase in car sales for Daimler AG. Most importantly, registrations in the United Kingdom were up 15 percent, and Germany, after five months of falling auto sales, finally saw a 4 percent gain in auto sales.

The industry is hoping to hold onto these gains and build on them in the coming months, and the European Central Bank is helping by slashing interest rates. As of May 2, the benchmark interest rate is 0.5 percent. Not that long ago, easing credit restrictions and offering more subprime credit options revived the auto industry in the United States, so it is perfectly possible that the same will happen in Europe.

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The new Mercedes C-Class will come with a 2.1-liter turbo-diesel engine, and Mercedes is already promising that the new engine will have somewhere between 20 percent and 30 percent improved fuel economy that. The new GLK250 BlueTec crossover will also be equipped with the 2.1-liter engine and will most likely replace the 3.0-liter V6 diesel engine option available now for the E-Class.

Right now, there are no other diesel options currently in the compact luxury segment. BMW premiered the 328d at the New York Auto Show, but the 328d won’t be available until later this year. Audi has also hinted that they will be adding diesel models as well, but it isn’t confirmed yet. With these announcements, however, it is clear that there will be many more diesel options for compact luxury auto buyers in the next few years.

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