Subaru will offer diesels before hybrids

Even though Subaru is working with Toyota to produce its hybrid technology, executives are saying that Subaru’s first efforts to increase fuel-economy of its cars will be through the introduction of diesel engines. Europe will get diesel variants next year followed by the U.S.
“There are many opinions. But currently, the voices calling for diesels are stronger than the voices for hybrids,” Ikuo Mori, president of Subaru parent company Fuji Heavy Industries, told Automotive News Europe.
The Subaru Outback and Legacy will be the first models to get the company’s first diesel engine which was developed internally. Those two diesel models are scheduled for debut at the 2008 Geneva Motor Show.
Subaru has not released a timeline for the diesel models making their way to the U.S., though sales are likely to begin within five years.
Source: Automotive News (Subscription Required)
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