Volkswagen could join forces with a Chinese car manufacturer to build a new generation of green cars.
A memorandum of understanding has been signed between Volkswagen and Chinese car maker, BYD, to explore possible partnerships in building hybrids and electric cars powered by lithium batteries.
Dr Ulrich Hackenberg, member of the board for technical development at Volkswagen, said: Volkswagen will consistently expand its successful BlueMotion technologies.
'Hybrids and electric vehicles will play an increasingly important role, of course.
Particularly for the Chinese market, potential partners such as BYD could support us in quickly expanding our activities.'