Audi has previous considered entering the hybrid market, and now has finally confirmed it will officially to do aiming to bring a hybrid version of its luxury SUV the Q5 to the US in 2010..

Wolfgang Hatz who is head of Audi's powertrain development said the automaker will build a hybrid to compete with the Lexus 400h and the upcoming BMW x6 hybrid, both luxury crossover hybrids.

Originally Audi had planned to introduce its hybrid drivetrain into its larger Q7, but the weak dollar against the Euro made that financially unfeasible.

Hatz believes diesel though is the better option noting  "If you look at what you have to spend to get the advantage of the hybrid and what you have to spend on other technologies like diesel, the diesel is much more cost-effective,We have to do hybrids in order to show people that we are able to do them.”

Source (Automotive News)