Peugeot‘s lower-medium 308 car will have a diesel-hybrid electric powertrain, a company source told Automotive News Europe (ANE).

The 308, the successor to the 307, will be PSA/Peugeot-Citroen’s first diesel-hybrid car. Its launch is expected late in 2007.

PSA showed 307 and Citroen C4 demonstration vehicles equipped with a diesel hybrid in January 2006.

It followed up with a diesel-hybrid van demonstrator last June.

ANE said a 308 diesel hybrid is expected to burn 3.4 litres of fuel per kilometre driven. Its CO2 emissions would be 90 grams per kilometre, which is 20% less than a diesel engine.

PSA sees no business case for petrol hybrids in Europe