Toyota Considering Making Diesel-Electric Hybrid Vehicles

Now it's more likely that Toyota will beat DaimlerChrysler to the punch by offering something similar as an option in its

While Dodge may have come up with the diesel-hybrid truck idea first, Toyota will no doubt beat them to market with something similar as an option in its next-generation Tacoma or Tundra. (Photo: Toyota Canada)

next-generation Tacoma or Tundra, plus diesel-electric or natural gas hybrid versions of its 4Runner and Sequoia, plus GX 470 and upcoming Lexus LX 470 replacement.

Although Toyota increased sales in Europe by 14 percent in the first six months of this year, creating diesel-hybrids would strengthen its hold on European markets where diesel-powered vehicles make up about 40 percent of new automobile sales and fuel prices are much more expensive than North America.

The Japanese automaker currently builds in the neighborhood of ten different diesel engines available in various

Creating diesel-hybrids would strengthen Toyota's hold on European markets where diesel-powered vehicles make up about 40 percent of new automobile sales. (Photo: Toyota Canada)

markets around the world. The European-spec Yaris, which was recently introduced in Canada as the Echo Hatchback and available in the U.S. and Canada with a trunk as the Echo, features a diesel variant, as does the Corolla, RAV4, Land Cruiser and others.

Watanabe's admission is well timed, being that diesel producers preparing to abide by a 15 ppm sulfur cap on ultra-low-sulfur diesel (ULSD) by mid-2006, mirroring the U.S. EPA's highway diesel regulation.

Rising gasoline costs would make such diesel-hybrids even more cost efficient than gasoline-electric hybrids, and environmentalists will appreciate the even lower emissions that will result.