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The Wall Street Journal is reporting Volkswagen is preparing a full hybrid-drive vehicle for 2007. The passenger car (no word on which one) will be able to operate electric-only, just like offerings from Toyota and Ford. (The last gossip we heard on this subject was that VW was working on a mild hybrid Jetta.) While the most cost-effective full-hybrid model would probably be the Passat, Porsche and Audi have both confirmed development of hybrid versions of their respective Cayenne and Q7 SUVs that are tentatively scheduled for 2008/2009, so their Touareg sister ship — but for the differing timelines — could be the one. A one-two punch of VW's green diesels and hybrids might be a clever way into the US market in coming years, as long as the price of oil continues an upward trajectory. Suspense, you tragic mistress, you.

Related:
Volkswagen Could Produce Mild Hybrid Jetta [internal]