Toyota to offer diesel hybrid in 2010

As the debate continues over which alternative fuel technology is the most effective, Toyota is hard at work on combining two of the frontrunners. "Informed sources" told Japan's Kyodo News this week that the automaker will deliver a diesel hybrid compact car as early as 2010. The car will be built in cooperation with Isuzu.

Earlier this month, we reported Toyota's acquisition of a $375 million stake in Isuzu gave it access to a wealth of diesel technology and over 800 diesel engineers. At the time, Toyota's Katsuaki Watanabe implied the company would offer diesels as an alternative to hybrids. But the Kyodo report suggests the automaker will also offer a diesel-electric hybrid.