Volkswagen to Make Hybrid Cars with China

Volkswagen will start making hybrid cars by 2008 with its main Chinese partner and may kick off large-scale production of the energy-efficient vehicles by 2010, the Chinese company said on Thursday.

Europe’s biggest car maker is teaming up with Shanghai Automotive in a project that could spur China’s hunt for alternative energy sources and curb pollution as demand for cars soars in the world’s seventh largest economy.