>Report: Volkswagen not planning on diesel hybrids

Many figure that if you can get impressive fuel-economy with a gasoline hybrid vehicle, you can probably get outstanding fuel-economy from a diesel hybrid. And while that may be true and some automakers like PSA Peugeot Citroen and Mercedes-Benz are pushing ahead with diesel hybrids, Volkswagen says it isn’t planning on jumping in the market.

“Diesel hybrids still don’t make good business sense,” a Volkswagen spokesman said. “The higher cost of clean diesel technology would make them even more expensive than petrol-electric cars. The markets where hybrids are most popular are also the ones where diesels are least popular.”

At the 2009 LA Auto Show, Volkswagen unveiled its Up! Lite Concept, a study model powered by a 0.8 TDI 2-cylinder turbo-diesel engine mated to an electric motor. It produced a total of 64-hp and went from 0-62 mph in 12 seconds.