Originally Posted by bostontrevor
Traditionally diesel has dirtier emissions (soot), is noisier, doesn't perform well in the cold, and if I recall doesn't increase power output as readily. Gasoline on the other hand has traditionally been cheap, at least in this country. For Europeans, on the other hand, it's been more expensive and they don't have the same soot emissions restrictions as the US, so diesel has sold better there since about forever.
Cold weather starting is largely solved, common rail injection reduces soot and noise, I'm told engine ramp up is much better than it used to be. Basically, the major diesel issues are solved. Their presence, while still miniscule, is on the increase in the US consumer market and there are quite a few current model diesel cars being brought to the US market starting this year...err, last year.
edit: I would also expect that a electric-diesel hybrid would be even more competitive than an electric-gasoline hybrid.
They sure drive a lot of diesels in Japan...