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VW Preparing a Prius-Fighter?

Volkswagen AG has begun developing a hybrid-electric compact hatchback model to compete against the Toyota Prius and upcoming Hyundai Ioniq hybrids.
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Volkswagen AG has begun developing a hybrid-electric compact hatchback model to compete against the Toyota Prius and upcoming Hyundai Ioniq hybrids.

The new model—tentatively dubbed the XL3—is due in 2018, reports Auto Bild, which doesn’t cite its sources. The German magazine says the vehicle’s target price is about €30,000 ($33,000).

Auto Bild says the XL3 will be a dedicated hybrid model rather than based on an existing vehicle. Technology and design cues are expected to come from VW’s limited-volume XL1 hybrid coupe.

The hybrid powertrain will team a 1.4-liter turbocharged 4-cylinder engine with an electric motor and lithium-ion battery. Combined fuel economy is estimated at 80 mpg on the European driving cycle.

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