While it has looked like Peugeot would be the first company to market a mainstream passenger vehicle with a diesel hybrid powertrain, it now looks like it won't come as quickly as previously thought. PSA (parent company of Peugeot and Citroen) has been developing a diesel hybrid system in cooperation with suppliers Bosch, Continental, Valeo and Thyssen-Krupp. The system was originally supposed to debut in the compact Peugeot 308 in 2010. The cost of developing the system was to have been partially subsidized by the French government. With the European Commission putting the screws to that plan, PSA and its partners will move forward without the handout. As a result, the company has decided that in order to recover those development costs, they need to apply the system on a more expensive model first, which of course means the volumes will be lower. The change in plans also means the new powertrain won't appear until at least 2011. At the current rate, Peugeot may still be first to market, unless Mahindra's plans for a diesel hybrid version of their pickup come to fruition in 2010.

[Source: GreenCarCongress]

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