German Car Zone

DETROIT--Audi will offer a hybrid version of its Q5 crossover in the United States starting in late 2010, says Wolfgang Hatz, head of power-train development for the Volkswagen group.
In an interview last week at the auto show, Hatz said Audi must offer a hybrid model to compete with rival vehicles that already offer the technology, such as the Lexus RX 400h. The BMW X6 will be offered as a hybrid late this year, and Mercedes plans to roll out a hybrid in each of its major models starting with the S400 hybrid this year.
But Hatz said he thinks the greatest potential lies in diesel.
"If you look at what you have to spend to get the advantage of the hybrid and what you have to spend on other technologies like diesel, the diesel is much more cost-effective," Hatz said. "We have to do hybrids in order to show people that we are able to do them."
Hatz said the cost to develop a hybrid power train is three to four times greater than that for a standard drivetrain, compared with less than 50 percent greater for a diesel drivetrain. Considering the low volumes of hybrid vehicles, it makes for a "negative business case" to offer the drivetrain in one model only, Hatz said.
"At the moment, we have to spend quite a lot on the basic technology, which then we can perhaps spread later on more models," he said.
Audi had planned to offer its first hybrid in the larger Q7 crossover, but the dollar's weak value against the euro made the business case unworkable. Hatz said the Q5 was a natural alternative.
Already on sale in Europe, the gasoline version of the Q5 reaches U.S. shores in March. It will compete with the BMW X3, Mercedes-Benz GLK, and Volvo XC60.

Source:autonews

Nice! Will 7-speed s-tronic transmission be available for 2010 Q5? Currently, it seemed to be only available for Australia market.

Lovely. The new generation Cayenne with hybrid is coming out next year and I guess these two cars will share hybrid drivetrain and components. Finally people will no longer have an excuse to buy the Lexus RX.

^ No need for all those, because BMW will have it's hybrid X6 this year on the market in the U.S

It's not a practical car and will be close to twice as expensive as the RX and Q5 which are smaller cars and therefore more sensible for hybrid usage. But I'm glad that all the Germans are catching up with Toyota on the hybrid frontier.

Same here, I wasn't all that serious with that comment! BMW using a 4.4 twin turbo V8 for their hybrid tech still amazes me. A new 245 hp 3.0 single turbo diesel would've been better...

Start at the top and then work your way to the bottom. The 7er and X6 Active Hybrid models will be priced to be profitable.
Next year and the F10 will bring a 530D Active Hybrid as will as a 550i.That should really put the cat amongst the pidgeons.

Nobody needs Hybrid vehicles when you can have extremely economical diesel engines. Americans really do not get the concept of a useful diesel engine unless it is in some truck monstrosity.

I would trade my B7 A4 2.0TQ in for a B5 or B6 2.5TDI in a NY minute if the Republik of Pelosistan would allow me to drive the thing...