Hi Swamp,.
I think it's another case of Detroit being behind the curve; they just haven't developed high-efficiency diesels - as BMW, VW,Mercedes and other European brands have. It's not the regulations, per se - which are objectively necessary unless we want to breath air laden with soot (and pay for the secondary costs, such as increased rates of emphysema and lung cancer, etc.). It that's our auto industry h asn't devoted the time and resources to build modern diesel passenger car engines - just as they were behind the curve on hybrids and just as it's taken them until the past five years or so to come up with "world class" four and six-cylinder gas engines.