Mercedes-Benz S300 Bluetec Hybrid

Mercedes is doing in 2010 what Lexus should have done now. Instead of a hulking V8 is a 2.2 liter diesel four-cylinder, and a claimed combined 44 mpg rating.

Yes, diesel. With better fuel efficiency and torque, diesel engines should be the de facto choice for all hybrid cars, and Mercedes (as well as Audi) is banking on it. Forget about dirty tailpipes with Benz's Bluetec, their own urea-based system that effectively neutralizes most of the fuel's harmful nitrogen oxides.

Europe will see the sedan first in 2010 and pricing hasn't been announced. Right now the mileage sounds too good to be true, but that's probably because most American buyers have negative vibes about diesel cars. Those old Mercedes clunkers with their rears covered in black soot are exactly that - the past.