Diesel engines dominate the European mass market, in large part because of the high cost of fuel. Gasoline engine hybrids haven't sold as well on the continent, so now Peugeot is planning to introduce the first diesel hybrid passenger car. The lower mid-sized 308 will unveiled as a replacement for the current 307, at the Frankfurt Motor Show in September, and a diesel-hybrid variant is expected to see the light of day by the end of 2007. Although this is a more expensive option, it should be more effective overall than gas hybrids. The hybrid gets the benefit of regenerative braking in the the urban environment, while the cruising efficiency of the diesel picks up the slack on the highway, where the hybrid is just dead weight.

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