LA: exporting green tech to the world? - The Volkswagen view

VW is also convinced that the fuel cell is anything but pie-in-the-sky, and has prototype engines running on the test bench.

These are so-called high-temperature fuel cells, which convert more of the energy in the hydrogen into electrical energy, and don't need as much expensive and weighty cooling equipment.

'Some things we can influence ourselves because we know how to solve the problems,' says the company's head of technical development, Dr Ulrich Hackenberg.

'Other things are outside our control. The hydrogen has to be produced, transported and stored at minus 215 degrees or less, and we need an infrastructure for this.

'Then we need the technology for storing the hydrogen at 700 bar within the car, and this is very expensive. These things can't be solved by us.'

VW showed a high-temperature fuel cell concept car at the LA motor show called the Space Up! Blue. It is the third model in a family of small, fuel-efficient city cars the company plans to build, based on a new rear-engined, rear-wheel-drive platform.

That platform is expected to get the green light for production soon, with the first car in the family due to appear by 2010, probably with 1.0- and 1.2-litre petrol or diesel engines.

Biofuel, plug-in electric and fuel cell versions are also envisaged in future.

'My view is that there will be a variation between regions as to which drive system is best,' says Hackenberg, echoing the view of GM's Bob Lutz.