The news goes back and forth when hearing about VW TDI hybrid -- will they or won't they? LeftLaneNews has posted that Volkswagen will likely product a new diesel-powered version of a new mid-sized sedan to compete with the Toyota Camry and Honda Accord in their  Chattanooga Tennessee production plant. The new facility is due to begin production in 2011, although expectations are that gasoline models will be first.

Along with this news, the post also said that Volkswagen "will also produce a smaller version of the Jetta at the Tennessee plant – which will do battle with the Toyota Corolla and Honda Civic – so it remains possible that it could also wind up with a diesel option." VW's U.S. head, Stephan Jacoby even "suggested that VW could launch a diesel-hybrid powertrain in the coming years, but failed to give any more details on the project. However, he promised that the new technology would be “at the forefront” of low emissions tech."