German auto makers are known for heavily promoting diesel power, but are now finally jumping on to the hybrid vehicle bandwagon.

To meet strict 2016 fuel efficiency standards in the United States, German auto makers see hybrid vehicles as the way to help their image among U.S. car buyers.

"The smart play is to hedge your bets by having entries in both categories," when talking about diesel and hybrid, according to J.D. Power and Associate analyst Michael Omotoso.  "There's still a lot of perception on the part of American consumers that diesels are dirty, so the strategy is to have hybrids for those who think diesels are dirty."

Indeed, Toyota, Honda and several other auto makers have temporarily pushed back launch plans for diesel vehicles, noting the lack of demand among U.S. consumers.  Furthermore, Toyota's decision to delay a diesel-powered vehicle also was because of a negative stigma related to diesel in the U.S.  However as noted in an earlier article published on DailyTech, German automakers -- due to European gas prices -- remain dedicated to diesel vehicles.

"We are taking a very broad approach," BMW spokesperson David Buchko told the USA Today.  "It's more than a statement.  It's an opportunity for us to gain familiarity with (hybrids) for broader use.  

Luxury carmakers such as BMW, Mercedes-Benz, Audi, and Porsche must choose what technology they invest in carefully, as consumer demand and the expected lifetime of some fuel technologies remains unclear.  For example, gas-electric hybrids may have been able to snatch up some headlines, but it's unknown if consumers will still be interested in just five years time, car industry analysts warn.

Volkswagen plans to continue investing research and development into clean diesel technology in the United States, with the company "encouraged by the momentum of our clean diesel TDI sales," VW COO Mark Barnes said last month.  He also added, "It appears that U.S. consumers are starting to realize the many benefits of today's clean diesels--vehicles that attain more than 30 percent better fuel economy while emitting 25 percent less greenhouse gas emission, all without sacrificing driving dynamics."

Any carmaker interested in offering diesel vehicles in the United States must now launch a clever marketing campaign to highlight the positive aspects of diesel technology.  Until then, expect German automakers to also focus on hybrid vehicles alongside regular gasoline and diesel engines.