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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 โ€” but for the differing timelines โ€” 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.

Volkswagen Could Produce Mild Hybrid Jetta [internal]