Given that Europe could tax vehicles based on CO2 emissions, the diesel hybrid is looking good overseas. A regular hybrid, either gas or diesel powered, won't cut the greenhouse gasses enough. You see, CO2 output is directly proportional to the fuel used. Since diesels get better fuel economy, plug-in diesel hybrids are getting more attention as the EU regulators consider policy changes. Diesels already account for more than half of new-vehicle sales in Europe. The big hurdle, of course, is making a business case for the new and expensive technology. PSA/Peugeot-Citroen says diesel PHEVs will work better than gas. (Shown is the diesel hybrid prototype of the Citroen C4). The next step is the EU decision followed by any incentives that will help speed up the manufacturers' development.

[Source: Tony Lewin / Automotive News via Autoweek]

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