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2010 Touareg
The Touareg is VW's first electric vehicle, and still hasn't come out yet (probably hits mainstream mid 2010). Even at that, there are some issues:
1) still implements NiMH batteries, rather than more efficient lithium
2) battery will be used to make one of their lease efficient cars (Touareg is an SUV) drive with moderate efficiency (25 mpg) rather than making their first hybrid a compact or full-size sedan to compete in the Prius/Civic market.
VW has maximized the small car market of Europe, which is highly dependent on fuel efficiency, so it confuses me why they haven't tried to capture the efficiency benefits of hybrid technology. On the other hand, no European car companies have followed the Japanese car makers in this respect... none of them could really be considered environmental leaders.
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they aren't trying to lead
VW admitted in so many words that it is refusing to take a lead in the environmentally-friendly car race. The Volkswagen chairman of the board Martin Winterkorn has stated repeatedly that the market of today is "inappropriate" for the mass release of all-electric cars due to charging times and prices of li-ion batteries. "It's a marathon, not a race," he says about the commercialization of e-cars. And so, he and the rest of the board are content to sit back and watch as everyone else does the work in research, development, and implementation of powerful, reliable new batteries in their fleets. In "the next decade," he says, VW will release a series of cars that have adopted li-ion technology.
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joint battery venture with BYD
It's a big deal that they announced a joint venture with Chinese automaker and big-time battery producer BYD. After much pessimism regarding electric vehicle technology "it could take decades to spread," VW announced that they would partner with BYD to research, develop, and mass produce li-ion batteries. VW is now expected to release its own electric vehicles by 2013, and hopes to capture a significant portion of the Chinese electric car market.
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Diesel Champions
Volkswagen has a longstanding reputation for producing very efficient, high performing upscale small cars. The GTI gets consistently high reviews for performance and reliability, and the Rabbit/Golf is seen as a comparable yet "quirky" alternative to the Honda Fit. VW cars hover in the 30 mpgs, and may(/or may not) be releasing a hybrid version of its Golf and Polo in the next two years (speculation has been on for years). While resisting a hybrid transition for years, VW now sees hybrid fleets as inevitable if it wishes to compete more aggressively in the American market, and are releasing a hybrid Taureg in 2011.
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