* Big 3 may boost more efficient diesel vehicle output
* Ford to launch diesel van in 2014, adds plant jobs
* US platinum, palladium autocatalyst demand seen up in 2014
By Frank Tang
NEW YORK, May 13 (Reuters) - A push by the United States toimprove fuel efficiency could spur demand for platinum catalyticconverters from leading car producers for diesel-poweredvehicles, an executive of platinum specialist refiner JohnsonMatthey said.
Jeremy Coombes, Johnson Matthey's general manager ofmarketing and publication, said he also expects U.S. platinumand palladium autocatalyst demand to grow year-over-year onimproving vehicle output.
The "Big Three" American automakers, General Motors Co.,Ford Motor Co. and Chrysler Group LLC, are pressing to meet agovernment requirement for average fuel economy of 54.5 milesper gallon (23.2 km per liter) by 2025, almost doubling thecurrent fuel efficiency.
While reducing engine size, curb weight and increasing morehybrids and electric-vehicle (EV) models have drawn more mediaattention, automakers could also make fuel-efficient vehicles byrefocusing on diesel models.
"Diesel could become an element in that fight to achievefuel economy, at the same time providing all the usualperformance characteristics that big cars have," Coombes said.
Diesel engines, mainly used in North American heavy-dutyvehicles and trucks, tend to be more fuel efficient and offermore horsepower than their gasoline counterparts.
While cheaper palladium is widely used in gasoline vehicles,platinum is more heavily used in diesel engines to filter outharmful gas emissions.
Michael Levine, truck communication manager at Ford Motor Co, said diesel vehicles tend to be favored by owners ofcommercial vans and heavy-duty trucks, who are more aggressiveabout cutting fuel costs.
He cited a brand new diesel-engine Transit van model to belaunched in 2014 by the U.S. No. 2 automaker.
Earlier in May, Ford said it will add 2,000 jobs to itsKansas City Assembly Plant for its Transit production and tomeet surging demand of its F-150 pickup trucks.
Ford's F-series pickup trucks, the best-selling models inthe U.S. market for 36 years, include a 6.7-liter dieselheavy-duty version.
"If diesel vehicle production is going up, North Americanwill get some more demand for platinum," Coombes said.
SHRINKING ENGINE SIZE
Another option for carmakers to improve fuel economy is todesign smaller engines.
Coombes said that U.S. demand for platinum group metals might not necessarily suffer even though smaller engines oftenmean using less autocatalysts.
"It is possible that this will produce more pollutants, andthat may work in favor of more PGMs, therefore balancing out theeffect of new smaller engines," Coombes said.
Looking forward, Coombes said he expects platinum andpalladium autocatalyst demand to grow in 2013 after they bothposted double-digit growth last year.
"The American market appears to be healthy. We expect morecars to be produced this year," Coombes said.