Volkswagen has a slick dual drivetrain system they’ve been working that Audi is looking at using in its next generation A3 model.

The TwinDrive Hybrid system uses an electric motor, with plug-in capability, to power the rear wheels and a turbocharged 1.6L 4-cylinder diesel engine to power the front wheels. The system is currently being tested in the latest VW Golf.

The TwinDrive Hybrid system, which has plug-in capability, will find a home in future Audi A3 models which will see fleet use in 2012.

Running on it’s electric motor only, the Audi A3 Hybrid will have a 31 mile range and be capable of doing 113 miles on a single gallon of diesel.