Volkswagen (VOWG.DE) will develop its own hybrid engine technology for the U.S. and European markets, Europe’s biggest carmaker said.
The company also announced it would work with Chinese joint venture partner Shanghai Automotive Industry Corp (SAIC) to develop hybrid technology solely for the Chinese market.
VW and its partner will begin making hybrid cars for China in 2008 and may kick off large-scale production of hybrids by 2010.
The joint venture will make 500 hybrid Touran cars to be used as people carriers during the 2008 Beijing Olympics.
China is the world’s largest consumer of oil after the United States, importing more than a third of its oil needs. Beijing is concerned that an energy shortage could harm economic growth.
Beijing has said it wants to raise the average fuel efficiency on vehicles by 15 percent by 2010 from 2003’s levels.
Loading...