I think Toyota is partnering with Ford to get some of their diesel technology. The way I see it, Toyota has nothing to gain by partnering with Ford because they're the leader in hybrids right now. It's not like Ford is going to offer Toyota better hybrid tech or economies of scale because the prius is the best selling hybrid out there. I'm thinking they're giving Ford access to their hybrid tech and in turn, Ford will give Toyota access to their diesel tech.
Whether Toyota publicly admits it or not, they need a diesel, at least in their Tundra truck if they want to complete with Ford (#1 truck) or Chevy (#2). They need the diesel if they want a heavy duty version for real payloads and towing capacity. I know the Tundra does well in terms of payload and towing with the 5.7 but again, they will never be seen in the same light until they a get a diesel. ...and we all know that the F150 is Ford's bread and butter.
Toyota has loads to gain by joining Ford on this. Toyota has tons of experience in hybrids but they don't move enough trucks and SUVs to amortize the R&D cost of a light duty, low range capable, offroad capable 4WD hybrid drivetrain*. Ford sells 500,000 F series trucks per year. That gives Toyota a way to chop down on their R&D cost and also take a slice of profit from the Ford hybrid sales. Best yet, they get to bring the best hybrid tech to their smaller volume of trucks and SUVs. Without a partner, I don't think they'd be able to show a cost justification to do the drivetrain development and their truck/suv volume would fall even further behind. Ford's volume and OK experience in hybrids makes this a great partnership for both.
* The hybrid drivetrains that Toyota has developed so far are for transverse mounted cars/CUVs and for luxury sedans (GSh and LSh). They don't have anything that will drop into the 4Runner, Tacoma, Tundra, GX, LX, Land Cruiser, or FJ and maintain offroad and towing ability at this point.
True. But the vast majority of the minority diesel buyers LOVE their diesels. It's not a technology issue, it's a perception problem that is, thankfully, starting to erode as more people realize today's diesels are not like the dirty ol' ones of the past. Who doesn't appreciate tons of torque at low rpm, while getting hybrid like economy — heck, some getting better than hybrid economy. Diesel choices are currently pretty small, but they're growing, despite Toyota's reluctance. And with a 54.5 mpg fleet economy average required by 2025, there will be more diesels offered. Let's hope the majority starts to see the benefit.
First, diesels can get hybrid gas mileage on the highway in steady state cruise. The more you get away from those ideal steady state conditions, the more things go to the hybrids favor. Just being realistic, most of us don't get to do a lot of steady state, ideal conditions while driving. I do, but I live in rural WV which isn't exactly common for most of the population.
I think that hybrids are a more attractive future option because of three reasons: 1) hybrids recover energy normally lost to braking. Diesels, unless hooked to an electric motor somehow, cannot do this. 2) HSD uses electric motors where they work best (high torque at low RPM) and gas engines where they work best (higher torque at higher engine speeds which translates to pow-ahhh!). Diesels fall on their face at generally 4000rpm. If you want performance and fuel economy, a hybrid is more likely to deliver that than a diesel. 3) NOx emissions as stated above.
Another thing to consider is how much gasoline you get out of one barrel of oil versus diesel. My understanding is that the yield of gasoline, by volume, is quite a bit higher. (i.e. we're more efficient at turning oil into gas than turning oil into diesel.) I wouldn't take this as gospel, though. I can't find a ton of good results confirming this exact scenario. How you refine oil seems to be impacted by market demand.