Volkswagen, Subaru Enter the World of Hybrids

Washington DC September 9, 2005; The Auto Channel reported that the AIADA newsletter said Volkswagen will start making hybrid cars by 2008 with its main Chinese partner and may kick off large-scale production of the energy-efficient vehicles by 2010, reported Reuters.

Europe’s biggest carmaker is teaming up with Shanghai Automotive in a venture to make 500 hybrid Touran cars to be used as people carriers during the 2008 Beijing Olympics.

The Volkswagen venture will develop hybrid technology for the Chinese market, a Volkswagen spokesman in Germany said, but the European firm would work alone to develop its own hybrid engine technology for the United States and Europe.

Meanwhile, Subaru announced on Wednesday that its parent company Fuji Heavy Industries, Ltd. is developing new technology for more environmentally friendly vehicles: the Turbo Parallel Hybrid and Lithium-ion capacitor (Li-ion).

Subaru is striving to create practical applications for these environmental technologies in its future products. "Subaru always has been and will continue to be committed to safeguarding the natural environment that so many of our customers avidly enjoy," said Kunio Ishigami, chairman, president and CEO, Subaru of America, Inc. "We will continue to make these technologies