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Apparently flustered due to its inability to choose between hybrid and diesel options before it hooked up with new loving, giving partner Toyota, Subie's decided that they're going to have a happening diesel powerplant in the Legacy by the end of next year. Since Toyota's generously decided to give the unit of Fuji Heavy Industries use of its hybrid system, the Subarus are full-steamin' on the diesel. They say it's to be built on the same line as the gasoline engine, which, we suppose means that it'll be a boxer. What will that sound like? [Thanks to Denis for the tip.]

Subaru aims for diesel cars by end of 2007 [MSNBC]

Toyota, Subaru to Collaborate on Hybrids [Internal]