Toyota will utilize its new found partnership with Isuzu to release its first ever diesel hybrid vehicle by 2010. Diesel engines by themselves already offer extremely frugal motoring, and when combined with an electric motor will offer even better mileage rates in addition to reduced emission levels.

There are already some trucks in production with diesel hybrid drivetrains and the next step is to reduce the size and weight of the engine and motor for application in a subcompact model. Isuzu is a market leader for diesel technology and Toyota, who owns a 5.9% stake in Isuzu, will merge that leadership with its innovative Synergy hybrid drivetrain to develop its new range of super-efficient diesel hybrids.

Toyota is not the only carmaker with investigating the new design. Other manufacturers, including Citroen, Ford, Opel and Volkswagen are currently working on developing their own diesel powered hybrid vehicles, so we may be seeing a lot more fuel misers in the near future.