Both Peugeot and Citroen are bringing diesel-electric hybrids to the European market in the next two to three years.

Also, there is no problem creating a high performance SULEV diesel engine (Tier 2 Bin 2), without resorting to urea injection etc.

http://www.greencarcongress.com/2007...o-announc.html

Emissions need not be an issue with diesel.

http://mysite.wanadoo-members.co.uk/ecotech/ecot.htm