Peugeot Citroën has issued a challenge to Japanese rivals with plans for diesel-hybrid compact cars capable of record levels of fuel economy and the lowest emissions of greenhouse gases.
Japanese groups such as Toyota and Honda have taken the lead in hybrid cars, combining petrol engines with an electric motor. Jean-Martin Folz, Peugeot chief executive, said diesel hybrids were capable of lower consumption, with a pilot Peugeot 307 and a Citroën C4 achieving 3.4 litres per 100km and cutting carbon dioxide to 90 grams for each kilometre compared with the current average of 140 grams.