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Think of Peugeot and you're more likely to conjure up images of a budget hatchback than an evocative sports car, but the French marque has been known to produce some rather tempting forms, from the RCZ to its Onyx concept from 2012. Now, it looks poised to do it again with the Exalt concept seen here.

The auto industry cross-pollination continues, with BMW and Peugeot having signed a Memorandum of Understanding to expand their engineering collaboration to include a new hybrid system. Specifically, this will be a hybrid drive for front-wheel drive vehicles, marking a departure for both BMW and Peugeot.

Peugeot 508 – Click above for high-res image gallery

Peugeot SR1 Concept – Click above for high-res image gallery

Peugeot SR1 Concept – Click above for high-res image gallery

Citroen C6 sedan - Click above for high-res image gallery

Peugeot HYmotion 3 - Click above for high-res image gallery

We have seen a lot of lucky personalities get a hold of the BMW Hydrogen 7 for a test drive. We don't know who you need to be to get on that celebrity list, but we know that it's still a big honkin' car. Therefore, it comes as a pleasant surprise that Peugeot is sharing a 308, a clever-sized compact car, to the French minister of Environmental affairs, Jean-Louis Borloo - and this 308 is a hybrid HDI. Yes, that means it pairs Peugeot's efficient HDI diesel engines to a hybrid transmission. Becau

digg_url = 'http://digg.com/offbeat_news/The_newest_from_France_Diesel_plus_hybrid_equals_70_mpg'; The latest diesel-powered cars offered in Europe come close to - and in a lot of cases beat - hybrid-electric cars like Toyota's Prius in the mileage stakes, so imagine what would happen if you combined the best of both technologies. France's Peugeot hopes to do just that and by becoming the first carmaker to launch a diesel-electric hybrid by the end of the decade.