Well look at that, VW does come out with a diesel hybrid...and its a plug in!
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Originally Posted by Wired
Volkswagen's been toying with hybrids for awhile and got electric-vehicle advocates in a lather over the diesel-electric Golf it unveiled a few months ago. Now the company's promising a plug-in hybrid by 2010 and the German government's written a big check to make it happen.
VW boss Martin Winterkorn says gas and diesel engines will be around for a long time to come, but "the future belongs to all-electric cars." The automaker is staking a claim to that future with a plug-in hybrid drivetrain it calls Twin Drive. It will debut in a Golf fitted with a 122-horsepower diesel engine and an 82-horsepower electric motor.
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http://blog.wired.com/cars/2008/06/vw-rolls-out-a.html