A better quote from that article shows that Mercedes isn't a willing party:
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From an engineering point of view, diesel is the better technology because it offers comparable gas mileage to a hybrid—or even superior mileage in highway driving—with less weight and expense. But the success of Toyota's luxury Lexus hybrid models showed that gasoline-oriented U.S. buyers want hybrids. "Mercedes said: 'If you want to save the planet, buy a diesel,'" says Christoph Stürmer, Frankfurt-based auto analyst at Global Insight. "They were right in their own way but proven wrong by the market."
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And lastly, the BlueHYBRID:
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is not a so-called full hybrid
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