Speaking at the Vienna Motor Symposium, Dr Martin Winterkorn, chairman of the Volkswagen Group, said that plug-in hybrid technology will meet many drivers' needs by offering unlimited internal combustion engine performance combined with attractive electric mobility ranges in everyday driving.

'The electric car will impact the future of individual mobility in crucial ways – and Volkswagen is spearheading this technology. Over the mid-term, the plug-in hybrid offers great potential, because it combines the best of two worlds in one vehicle,' said Winterkorn.

'Electric mobility is the task of the century for the automotive industry and the European industrial community as a whole. Manufacturers, suppliers, energy providers, scientists and politicians – everyone must step up to the plate here,' he added.

VW also used the event to showcase two new engines which will be available shortly: the 1.4 l TSI Motor E 85 and the new 2.0 l TDI, which already fulfils the BIN5/ULEV emission regulations in the US. 

The 1.4 l TSI Motor E 85 will be used first in the Passat and Passat CC, initially in Sweden and Finland. In the Passat saloon, the combination of the new TSI with a seven-speed DSG dual clutch transmission in E 85 operation will give a fuel consumption value of 8.8L/100km, with 144g CO2/km. This represents a 7% reduction in CO2 emissions compared to an engine operated with Super petrol fuel.

The 2.0 l TDI produces 140PS and 320Nm. The engine will be used in the Passat, giving a 0-100kph time of 9.3 seconds and fuel economy of 6.7L/100km

VW also said that it feels the 2.0 l TDI will prove popular in the US, despite the market's modest take-up of diesel-powered passenger cars. In a statement, the carmaker said: 'By introducing the new 2.0 l TDI, the Volkswagen Group is reaffirming its conviction that diesel engines still have great potential in passenger cars in the USA.'