Just read an article in Popular Mechanics how VW has two diesel models available in Europe (Polo Bluemotion 1 & 2) that get 73.5 hwy mpg (converted to US gallons from 88.3 mpg imperial).

Given the increased energy density of diesel, I think its only a matter of time before we see diesel hybrids arrive. Anyone have any info or links for those?

I could see a VW Polo Hybrid Diesel smoking an Insight in fuel efficiency (and it seats 4).