The German government announced it will be helping to fund VW's plug-in hybrid development program with 15 million euros. VM aims for a 2010 vehicle with 31 miles of all-electric range. VW head Martin Winterkorn said that while petrol or diesel powered cars would be around for some time to come, "the future belongs to all-electric cars." According to autoblog, the Twin Drive uses a 82-hp electric motor and a 2.0L turbodiesel producing 122 hp.
VW recently signed a deal with Sanyo, which is aggressively ramping up automotive lithium-ion battery production. It expects the hybrid and plug-in hybrid markets to be 4 to 4.5 million vehicles by 2015, and aims to capture 40% of this market. Sanyo uses a mixture of Ni, Mn, and Co for the positive electrode, thereby producing a safer battery that exhibits power retention ratio of 80% or higher after 10,000 cycles (10-15 years in a hybrid vehicle).