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.

In a speech at the New York Auto Show, the head of Volkswagen, Stefan Jacoby, stated that they are considering bringing the Volkswagen Up! Microcar to the US.

“Up! could be in the future of the market here. In urban areas like New York, a car like Up! has a good chance.” Stated Jacoby.

VW expects to have the Up! ready for sale by 2012. While there have been no official announcements on which countries will be selling it first, the news about the US market does make it sound like the Up! could be cruising New York streets in three years.

Among the yet-to-be-announced facts about the Up! is what kind of drive train it will have. Nobody even knows if it will be an electric vehicle, gas powered, or a hybrid.

Volkswagen’s upcoming new line of small electric cars will see their electric drive trains developed in concert with Japan’s Toshiba Corporation.

According to Volkswagen, their goal is to produce the first affordable electric car. They admit that while there is a still a lot of research and development required in order for them to be able to mass produce such an electric car, they expect their first model to be available as early as 2012.

Toshiba’s lithium-ion batteries will power the new line of Volkswagen electric cars and will use their Super Charge Ion Battery (SCIB) technology. The SCIB is resistant to shorting and can impressively absorb 90 percent of its maximum charge in only a few minutes.

Toshiba will also be looking for other places to make use of the SCIB technology like electric bikes and electric industrial vehicles.