Volkswagen will reveal a new hybrid version of the Passat sedan during the Detroit Auto Show.

Volkswagen hopes to charge into the upcoming Detroit Auto Show with a pair of battery-based vehicles including a new hybrid version of its hot-selling Passat sedan.

The German maker is better known for its commitment to diesel technology, so-called “oil burners” accounting for as much as a third of the sales of some of its U.S. models.  But to win over the growing “green car” segment, both here and abroad, VW has been putting a bigger emphasis on electric propulsion.

The arrival of a Passat hybrid would follow the launch of the maker’s first gas-electric model, the Touareg Hybrid, last year.  The newer offering is due to market by November as a 2013 model.

As for the battery-electric vehicle that Volkswagen plans to show in Detroit the maker isn’t ready to release details beyond saying the small zero-emissions vehicle will not be the same E-Up model that it first revealed during the Frankfurt Motor Show in September 2009.

Volkswagen's concept E-Up.

VW is describing the show car as a “pure concept,” which suggests it is designed to test interest in the underlying battery-electric technology rather than actually preview a model intended for production.  It reportedly will have some “Beetle-esque” cues but will not be a battery version of the maker’s latest Bug.

With the drive for sustainability in full swing, makers are struggling to identify where demand might be strongest for electrified vehicles and whether there will be enough demand to justify the cost.  The entire battery-based market, which includes BEVs, plug-ins and conventional hybrids, will account for barely 2% of the U.S. market this year, with standard hybrids, like the Toyota Prius, accounting for the vast majority of those sales.

Nonetheless, strict new emissions and mileage regulations could force a transition to battery power.  As TheDetroitBureau.com reported yesterday, California regulators want to see 1.4 million zero-emission vehicles – which could include hydrogen fuel-cell vehicles – on the road before the end of the decade.  (Click Here for that report.)

While Europe has been slow to pick up on electric power – high-mileage diesels currently accounting for half that market’s demand – the technology is beginning to gain traction and a production version of the E-Up is under development.  It is unclear whether it would also come to the U.S.

As for the Passat Hybrid, it is expected to pair a single electric motor to a 1.4-liter gasoline engine.  That inline-four will not be the same as the engine used in Europe, however, which uses both turbo and supercharging to improve performance.  Under hard acceleration the new Passat Hybrid would draw power from both the small gas engine and its electric driveline.

VW plans to pit the Passat Hybrid up against the popular Prius – which currently accounts for half of all U.S. hybrid sales.  Whether it will gain a following remains to be seen, however, as Prius has so far been the only hybrid to really develop strong demand.

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