2011 Audi Q5 Hybrid slated for U.S. Market

In order to stay competitive in the luxury SUV market, Audi has determined it must offer a hybrid powertrain. Although the German automaker first considered putting a hybrid drive system in the larger Q7, the dollar's weak value against the euro made the business case impracticable. It has thus determined that the system will instead launch in the smaller Q5.

The news comes from an interview by Automotive News Europe with Wolfgang Hatz, head of powertrain development for the Volkswagen group. Hatz says that the company must offer hybrid technology to compete with vehicles like the current Lexus RX400h and the BMW X6 hybrid that will launch later this year.

Despite the confirmation of a new hybrid powertrain, Audi is putting greater stock in its diesel engines. According to Hatz, the development of a hybrid powertrain is three to four times more expensive than for a standard drivetrain.

Since the company will soon have the hybrid technology in a production from, Hatz says it makes for a "negative business case" to only offer the drivetrain in one model. The Q5 hybrid will first launch in the U.S. in late 2010. If the new model does well, Audi may offer the Q5 hybrid in Europe and explore the use of hybrid technology in more of its vehicles.