Back in February I reported that Volkswagen of America President Stefan Jacoby downplayed the importance of electric and hybrid drive trains in Volkswagen’s future product development. Well, Jacoby is now gone and VW chief Martin Winterkorn says VW will, indeed, become a player in both electric and hybrid platforms.

A Toureg hybrid is already in production and a Jetta hybrid will hit the streets in 2012. Hybrid versions of the Passat and Golf are also planned. Electric versions of the Golf and VW’s new Up! are being planned, as well, and at least one of them will sold in the U.S.

Volkswagen continues to insist that it wants to become the world’s largest car maker by 2018. Europe is already nailed down and the company is very strong in China and, through its partnership with Suzuki, India, too. The U.S. remains a tough nut for VW to crack, though. At one time the company practically owned the import segment in this country, but the Japanese invasion devastated its market share and today it ranks in the same league as Mazda or BMW. Respectable enough but far below its peak some forty years ago.

A newly redesigned Jetta may help, as might the new mid-size car that will come out of VW’s brand new plant in Chattanooga, TN. However, new challenges will keep coming. Premium car makers such as BMW and Mercedes are moving down market with smaller offerings while the Koreans continue to boost their share with higher quality and better looking models.

--M.D.