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I don't believe diesel is necessarily down and completely out because of the dieselgate scandal, which is apparently more widespread than I originally heard, but emission standards being what they are might be the death knell regardless.
However, diesel is still a fuel that is used for pickups, heavy duty trucks, large construction equipment, trains, boats, barges, etc., because of the torque it can produce. Until electric engines become feasible to replace diesel engines entirely, there will still be a use for them.
However, if emission standards continue to tighten, who knows. There is a definite movement to get rid of all fossil fuels, which means gasoline and natural gas, too.
We'll see. Diesel might take a hit, but it's also possible that the car makers involved will actually come up with a way to ethically and legally meet the standards because the public will still want the diesel turbo charged engines in their cars.