Peugeot shows new 908 HY diesel-hybrid Le Mans racer!

In the current world of big time international endurance racing, two cars stand head and shoulders above the rest, the Audi R10 TDI and the Peugeot 908 HDi. Put these two Le Mans Prototype class 1 cars, both powered by 5.5L turbo diesel V12s, on a wide open track and nothing can run with them. With Formula 1 introducing hybrid kinetic energy recovery systems (KERS) in 2009 and the American Le Mans Series introducing a Green Challenge award, Peugeot has decided to take the next step with its program. The French manufacturer is using the last race of the 2008 Le Mans Series at Sliverstone to unveil a demonstrator called the 908 HY which may foreshadow the next generation of its Le Mans challenger. The 908 HY adds a 60 kW electric motor, a set of lithium ion battery packs and corresponding power electronics. The diesel hybrid system will allow the car to operate in electric-only mode in the pits, and get a power boost on the track thanks to recaptured kinetic energy. The current demonstrator has a net weight gain of 45 kg (99 lbs) compared to the standard car. Whether Peugeot runs a car based on this powertrain depends on the ACO, the organization that sets the rules for Le Mans.

Peugeot launches limited edition 207 Le Mans

In honor of its almost all-conquering 908 HDi diesel race car, Peugeot has decided to create a limited edition 207 Le Mans. Like the big gun 908, the 207 will only be powered by 1.6L diesel engines with a choice of two power levels. The lesser engine will be rated at 110hp while the more sporting edition rates 175hp. The 2,000 European customers who get their hands on a 207 Le Mans also get to select from Banquise White and Obsidien Black. Like the race cars, the 207 gets a longitudinal red stripe on its nose. The little 207 gets big 17" wheels and assorted badging including a number plate on the steering wheel.

Nikkei: Mitsubishi and Peugeot will work together on electric cars

The iMiEV, the production car based on the Nissan Mixim, and who knows what other goodies became a little bit more real today with the report in the Nikkei business daily newspaper that Mitsubishi and PSA Peugeot Citroen will work together on electric vehicles. The two companies will share technology, particularly about next-gen lithium-ion batteries. Nikkei said that Mitsubishi will offer PSA information on how best to convert electricity to drive power and how to prevent overheating in the batteries. According to Reuters, the two companies may also form a joint venture to build EVs. Mitsubishi had no official statement for Nikkei, but we do know that PSA and Mitsubishi recently announced a joint plant in Russia.

Fuel sipping station wagons sold in Europe

Do you have a small family and a dog? For many Europeans in that or a similar situation, station wagons are the ride of choice, despite the SUV and minivan craze. Buying a station wagon often means that you're buying a fuel efficient vehicle which can carry lots of stuff, and some of these vehicles can even seat seven. The key to an fuel-saving family hauler is finding that elusive combination of being compact in size, roomy inside and fitted to a efficient powertrain. Compact minivans, SUVs and CUVs sometimes fit these qualifications, as we discussed when we posed a list of European fuel saving people carriers. That list included some station wagons that seat seven, and today's list expands on that and shows the 20 most fuel-efficient station wagons on sale in Europe. Don't think all of them are made by European automakers. Find the full list after the jump.

Spoiler Alert: Diesels take top six positions at Le Mans

If you have the 24 hours of Le Mans on your DVR and don't want to know which diesel crew landed at the top of the podium then don't follow the jump. If you want to know who covered the most distance today go right ahead.

Hypermiling couple drive Peugeot 308 around Australia at 75.6mpg

Here in the U.S., hypermiling has largely been the province of hybrid drivers. That doesn't mean that only hybrid drivers can take advantage of those driving strategies. When last we heard from Helen and John Taylor, the British couple had just completed a run from Britain to Poland in a pair of diesel-powered Jeeps at 55-56mpg. After that jaunt they headed to Australia for another hypermiling adventure. This time around they used a Peugeot 308 HDi 110. The pair drove the C-class sized hatchback 9,000 miles around the coast of Australia over 25 days. On one stretch, they traveled 1,192 mile on a single 60L tank of diesel and they averaged 75.6mpg (U.S.) over the whole journey. That was enough to gain two slots in the Guinness book of World records for longest distance on a single tank and highest mileage for a journey. The 308 was completely stock with nothing added or removed and also carried the couple's luggage for the 25 day trip.