Audi Still Loves Diesel But Confirms Q5 Hybrid SUV for U.S. in 2011

Audi Still Loves Diesel But Confirms Q5 Hybrid SUV for U.S. in 2011

By John O'Dell December 30, 2009

Audi will start selling a hybrid version of its Q5 crossover SUV in the U.S. in 2011, the automaker's first hybrid-electric vehicle to be sold in North America.

Although it is developing hybrids to remain competitive with rivals, Audi has long maintained that diesel is a more cost-effective way to boost gas mileage for its cars than hybrid technology.

Earlier this month, the Audi's clean diesel 3 TDI hatchback, which gets an EPA-rated 42 miles per gallon, was named the 2010 Green Car of the Year by Green Car Journal magazine at the Los Angeles International Auto Show.

The Q5 hybrid will be part of $10.5 billion investment Audi's making in new propulsion technologies over the next three years, Audi spokesman Christian Bokich confirmed.

The program is likely to result in more Audi hybrids and electric vehicles by mid-decade.

Audi, which had previously announced that it will start selling its E-tron electric sports car in limited production in 2012, isn't providing details yet about model years or pricing for the Q5 hybrid.

Audi will be looking to boost sales by developing a hybrid vehicle that can take on competitors such as Lexus's RX 400h and the 2010 BMW's X6.

While the brand's worldwide vehicle shipments were down 7.5% through the first three quarters of the year, Audi's November unit deliveries rose 8.9% from a year earlier while October unit sales rose 0.4% from a year earlier.

The company isn't disclosing what gas engine will be paired with the Q5's battery, though it will likely be the 211-horsepower 2.0-liter turbocharged TFSI engine already used in the conventional Q5 as well as Audi's A4 sedans and wagons, according to people familiar with the hybrid plan.

Audi earlier this year said it may have a hybrid version of the Q5 available by the end of 2010 but may have been delayed as it pondered the type of batteries to use.

It reportedly selected nickel-metal hydride batteries, saying it believes they are safer and more practical for conventional hybrid applications than the present generation of lithium ion batteries.

Audi's planned introduction 2011 of the Q5 hybrid initially was reported by U.S. News & World Report.

Danny King, Contributor

John O'Dell:  is an AutoObserver Senior Editor. Follow @AutoObserver on Twitter.