Diesel electric locomotives seem popular, even these days. The UK's Type 45 destroyers have tried integrated electric propulsion, and I think that there are hybrid motor-generator cars that can recharge their battery.
There clearly seems a steady move towards transforming more and more power train components to electricity in all sorts of vehicles. Assuming that we don't attach over head wires and a pantograph system to Volvos, the next best thing seems fully diesel electric power. No?