Volkswagen Covers Its Bets with First Foray into Hybrids

Volkswagen Covers Its Bets with First Foray into Hybrids

By Michelle Krebs September 29, 2010

European automakers have balked at introducing hybrid-electric vehicles, arguing vehemently - and maybe rightly -- that diesels, so popular here in Europe, do the best job of boosting fuel economy and reducing CO2 emissions.

But Volkswagen, Europe's largest automaker, recognizes it can resist no longer. It is launching its first-ever hybrid powertrain on the second-generation 2011 Volkswagen Tourareg SUV, on sale now in Europe and arriving on U.S. shores in November. A Jetta hybrid follows in 2012.

Despite the launch of its first hybrid, one senses Volkswagen is still not a true believer - but at least is going through the motions.

At the introduction of the U.S.-spec 2011 Volkswagen Touareg here in Nice, France, on the eve of the Paris motor show, Volkswagen executives acknowledged that as one of the world's largest automakers with designs on being No. 1, it was obligated to offer every technology, including hybrids, in case a niche turns into more than that.

Dr. Bernd Stiebels, Volkswagen's head of technology development for the Touareg hybrid, said the German automaker is taking a top-down approach with hybridization of its model line. It is starting with the Touareg, which shares its hybrid system with the Porsche Cayenne. The same hybrid concept will move into the Volkswagen Jetta in 2012, though, Stiebels said, the details of the Jetta's system will be vastly different than that of the Touareg's, in part because the Toureg's engine is longitudinally placed, the Jetta's traversely.

Volkswagen execs would not hint at U.S. pricing of the Touareg hybrid - that announcement comes in another week. But product manager John Ryan said Volkswagen would offer a "very attractive lease payment" since high lease penetration on the hybrid is expected.

Nor would Ryan give a sales forecast for the hybrid or the new Touareg in general. In Europe, Touareg hybrid sales are going better than expected. Buyers generally have been early technology adopters, a similar demographic predicted for the United States.

The Touareg Hybrid

Stiebels said goals for development of the Touareg hybrid included maintaining the SUVs' 7,700-pound towing capacity and European handling feel, delivering V8-equivalent performance and adding the ability to run on pure electricity.

The Touareg's parallel hybrid system is comprised of a modified 3-liter supercharged V6 supercharged with direction injection, rated at 330 horsepower and 325 lb.-ft. of torque. It is combined with a hybrid module that includes a 34-kw electric motor. The 288-volt nickel metal hydride battery pack is tucked under the cargo floor.

Combined, the powertrain produces a total of 380 horsepower and 428 lb.-ft. of torque and delivers an estimated 21 miles per gallon city and 25 mpg highway, figures yet to be certified by the U.S. Environmental Protection Agency.

The powertrain is paired with VW's first-ever 8-speed automatic transmission. The same 8-speed gearbox, which includes two "eco" gears, now is in both the gasoline and diesel versions of the Touareg. The hybrid version also has a start/top function, can run in electric drive exclusively up to 32 mph and has regenerative brakes. It is covered by an 8-year/100,000-mile warranty as are its competitors, notably the hybrid Lexus RX.

Resuscitating Touareg Sales

Although the hybrid Touareg is unlikely to be a volume seller, Volkswagen clearly is looking for anything to resuscitate overall Touareg sales.

First introduced as a brand new model in 2002, Touareg sales in the United States soared to 27,706 units in 2004, according to Edmunds.com data. But it has been a steady downward spiral from there. In 2009, Volkswagen sold a mere 4,392 Touaregs; it has sold only 2,511 through end of August this year.

To boost Touareg sales, Volkswagen is taking a different approach in the United States than in Europe. Completely redesigned, the Touareg's once ultra-rugged off-road capability is being downplayed. The emphasis with the 2011 version is on fuel efficiency, performance, comfort - it is longer, wider, roomier and has more cargo space than its predecessor - and value-added with new features available.

Those latest features include remote rear hatch opening and closing (the previous model had remote open only), a 115-volt rear-seat outlet, push-button fold-down rear seats, a large-screen 3D navigation system and panoramic sunroof.

By removing some of its heavy-duty off-road components and adding the eight-speed transmission, the Touareg has lost weight - roughly 350 pounds. That helps the V6 gasoline version boost city fuel economy by 2 mpg to 16 mpg and highway economy by 4 mpg to 23 mpg; the diesel version gets a 3-mpg hike in highway fuel economy to 28 mpg. Otherwise, the 3.6-liter V6 engine and the 3-liter V6 TDI diesel are the same as in the previous Touareg but are now paired with the 8-speed transmission and standard 4Motion all-wheel drive.

The Touareg comes as a Sport, Lux and top-of-the-line Executive version. The hybrid comes only one way, with equipment packaging similar to that of the Executive version. Otherwise, Volkswagen has simplified the possible combinations of the Touareg to 14 - from the previous 400.

Despite the addition of the hybrid variant, Volkswagen expects to continue its high penetration of TDI turbodiesel engine. Currently, 30 to 40 percent of all Touareg sales are TDI, a number Volkswagen expects to settle in at 20 to 30 percent.

In their hearts, it appears Volkswagen executives still believe diesel is the best solution to higher fuel economy and lower emissions. That was borne out in back-to-back test drives in stop-and-go city driving here in Southern France, where the diesel easily delivered better economy.

Still, even if VW isn't the hybrid true believer that rivals such as Toyota might be, the company's covering its bets while boosting its global technological image with the hybrid Touareg.

 

AutoObserver.com  attended a manufacturer-sponsored event, to which selected members of the press were invited, to facilitate this report

Photos by Volkswagen

Michelle Krebs:  is Editor-in-Chief of AutoObserver.com. Follow @AutoObserver on Twitter.