In a recent international technology report published by Ricardo, it is estimated that by 2012 diesels will outsell hybrids in the U.S. High gas prices and enviornmental concerns have seen constant increases in Hybrid sales to an all-time record in May. At current 2007 numbers, Hybrids could reach sales of 500,000 units for the year. By 2012, combined annual diesel and hybrids in the U.S. could reach 2.7 million (accounting for 15% of the total market). The report also predicts that of the 2.7 million sales, 1.5 million will be diesel and 1.2 million hybrid. Why? Cost and better technology.
The American consumer has a long memory for the ill effects of diesels in the early 1980s. They were loud, slow, and dirty. But have you been to Europe lately where diesels are quiet, turbo-charged, and clean? And where more people by diesels than gasoline engines. For years, the American consumer has bucked international trends in the automotive market. Just look at pickup truck and SUV sales over the past 20 years. Those numbers are unique to the U.S.
New diesel technology is just around the corner and expect to see more and more vehicles on the road, but they won't be as noticable as past diesels. In fact, you may not notice them at all unless they're sprinting by your Prius.

