VW predicts hybrid gains

A top Volkswagen of America official said Thursday the automaker stands to gain from its fuel-sipping clean diesel vehicles and new hybrids.

"The most exciting thing to come out of the Geneva Motor Show is the new Touareg from our standpoint in the U.S.," said Mark Barnes, the company's chief operating officer, about the sport utility vehicle. "It will be our first entry in the hybrid powertrain."

Also, a hybrid version is under consideration for the new midsize sedan to be built in VW's assembly plant in Chattanooga next year, said VW spokesman Tom Wegehaupt.

But, he said, it's too early to say whether the hybrid will be built in Chattanooga. VW has said a gas-powered model will be made in Chattanooga along with a diesel-powered version of the sedan.

At the auto show in Geneva this week, Volkswagen AG Chief Executive Officer Martin Winterkorn said the German automaker's goal is to become the market leader in "e-mobility" by the year 2018.

"We want to attain an electric vehicle market share of 3 percent within our entire range of products," he said.

Also this week, VW of America reported sharply higher sales in February, up 32.6 percent over a year ago. In the first two months of the year, VW sales are 36.9 percent higher, according to the company.

"We're certainly off to a good start," said Mr. Barnes in a telephone interview. "We're positioned well with our products to have a good year."

Higher fuel prices, which some analysts have projected could hit $3 a gallon this summer, plays into VW's clean diesel strategy, he said.

"It gets great fuel economy. It's good for the environment and you're not giving up one bit of strong drive experience," Mr. Barnes said.

He said the new Touareg will hit the American market late this year or early 2011. Also a new Jetta compact sedan is slated to be unveiled in 2010, Mr. Barnes said.

In September, plans are for VW's dealer group to drive the new Jetta from Nashville to Chattanooga, where they'll check out the plant under construction, he said. A hybrid version of the Jetta for the U.S. market will follow in 2012, according to VW.