VW's US market saloon will be sold as a hybrid by summer 2012, a company source has revealed.
The new car, codenamed NMS (new mid-sized sedan), is set to go on sale at the end of 2011 and will also be available with the same 2.5-litre diesel that's offered in US-market Jettas.
VW is keen to push diesel power in the US and making the NMS diesel-powered is seen as key to the strategy.
The NMS is designed to boost VW's appeal in America, where it had been underperforming because of overpriced and undersized cars. It will also be made in a new factory in Tennessee to offset currency fluctuations.
VW insiders have also revealed that they are looking into a long-wheelbase Tiguan SUV to make that more appealing to US buyers.