General Motors’ Holden subsidiary is spearheading the development of a new diesel version of the modular Zeta platform as well as an advanced hybrid system, which could eventually be sold in its VE Commodore sedan and Pontiac’s new G8. In an interview with Australia’s GoAuto News, Holden boss Denny Mooney revealed that engineers in Australia were developing a two-mode petrol-electric hybrid system based on technology sourced from an alliance formed between BMW, DaimlerChrysler and GM.

GM will first release the “two-mode” hybrid system in its Chevrolet Tahoe and GMC Yukon SUVs later this year but according to Mooney, “Holden is doing the engineering work.” Mooney then revealed that engineers were also working on a new diesel V6 but there’s currently no production date scheduled. At the Geneva Motor Show, GM unveiled a new 2.9L diesel V6 that outputs 184kW and 550Nm of torque. Mooney wasn’t willing to admit whether or not Holden is in fact using the same design, but he did confirm that it does fit with Zeta.

When we’ll see a diesel or hybrid powered Holden Commodore, or Pontiac G8 for that matter, is still up in the air. "Here’s the deal with diesel, and you can put hybrids in the same mould, by the way. You’ve got to have a business case," Mooney said. If Holden can secure a large export deal for the enviro-friendly vehicles, then it’s more than likely we’ll see them enter production in the near future. "Diesels are very popular in Europe and not so popular in the US and some other parts of the world," admitted Mooney, "so it might depend on an export market."