Toyota Motor Corp may market a diesel hybrid sub compact car as early as 2010 in cooperation with Isuzu Motors Ltd. The drive train would be popular in Europe where diesels dominate. European drivers haven't warmed up to the idea of gasoline hybrids because of their longstanding love for diesels. Although Toyota produces diesels for the European market, they are not leading the pack in clean diesel technology.
http://www.autoweek.com/apps/pbcs.dll/article?AID=/20061114/FREE/61113017/1024/LATESTNEWS
http://news.ninemsn.com.au/article.aspx?id=163838
Toyota has a Tundra-like (Hilux) pickup truck with a common rail turbo diesel available in Europe
http://www.toyota.co.uk/cgi-bin/toyota/bv/generic_editorial.jsp?BV_SessionID=@@@@0988376658.1163954951@@@@&BV_EngineID=cccdaddjgmdifemcfngcfkmdfkidffk.0&navRoot=toyota_1024_root&portal=null&edname=Hil_Diesel&id=Hil_Diesel&catname=%2ftoyota_1024_root%2fmain_nav%2fpageTopNav%2fZone+HILUX&zone=Zone+HILUX&menuid=45795&sr=Mall
Diesel hybrid vehicles, which run on a diesel engine and an electric motor, are considered more fuel efficient than currently common gasoline-electric hybrid vehicles, and cleaner than diesel engine vehicles in terms of gas emissions. Nice one Toyota!