European automakers are continuing to advocate the use of modern diesel engines, warning that Japan's preference for advanced 'hybrid' technology is the product of political machinations.

European strength in the diesel industry is built on the back of a healthy domestic market, with home sales composed of more than 40 per cent diesel.

Consequently the majority of firms operating in Europe have been keen to approach the drive toward emissions reduction using diesel technology, and are wary of the rival technology being developed in Japan.

Georges Douin, Renault executive vice president of strategic product planning, told Automotive News that 'we do not need hybrids', highlighting the firm's Clio diesel as the most fuel-efficient car on the market.

It is a view echoed by a number of European manufacturers. Wilfried Bockelmann, VW brand board member responsible for development, says that his company 'will only develop them when we are forced [to do so]'.

'And if so, the ideal hybrid system will be combined with a diesel engine,' he added.

Renault, PSA/Peugeot-Citroen and Daimler-Chrysler have all expressed similar views, with any development of hybrid engines taking place on a diesel engine basis.

Daimler-Chrysler says it believes that diesel will also ultimately fuel the emissions cuts in the crucial US market.

In contrast Japanese automakers continue to insist that hybrid technology can deliver the total package necessary and are leading the way in the US.

Indeed, while diesel technology can lower CO2 emission levels, it can't meet future nitrogen oxide emission rules deemed necessary in the US.

As a result Japanese automakers have invested heavily in hybrid technology, targeting future California near-zero emission rules in Japan's primary export market.

Honda chief executive Takeo Fukui is confident that hybrids will make up 'around five per cent of our total output' by 2006.

In the short term the two technologies appear to represent polarised perceptions of how to meet emissions strategy, with both sides claiming the other will soon become an expensive and outdated method of emissions reduction.

The only other potential conclusion is the merger of the two technologies at a point in between, with some form of diesel hybrid reduction strategy taking hold.