Nowadays it's easy to forget that diesel is good for more than just massive torque. Remember? Diesels get great fuel economy too. And in case you're not impressed by a 'normal' diesel like the Euro-spec Honda Civic, VW has decided to make a diesel hybrid. VW has combined a turbocharged 75 HP 3-cylinder diesel, a 27 HP electric motor with a trunk-mounted NiMH battery, and a 7-speed DSG. The result should be an average of 3.4L/100km (69 mpg).
The VW is capable of driving either totally on electric or diesel power (or obviously a combination of both). A stop/start system shuts down the engine when sitting in city traffic. And to further charge the batteries there is a regenerative braking system. [Auto Bild via German Car Blog]