Volkswagen must be pace-setters for sustainable, responsible mobility, Group chairman Dr Martin Winterkorn said at a briefing on the eve of the Paris show.
He was speaking as he unveiled a Passat estate with CO2 emissions of just 109g/km and fuel economy of almost 69mpg.
It is currently only a concept car, but VW hopes to reach that target in a production mde; in three stages next year.
Phase one would be to fit a stop-start system to a current Passat TDI; then it would get a new 1.6-litre turbodiesel engine lowering CO2 emissions to 114g/km; finally there would be additional changes to reach the 109g/km goal.
The 1.6 engine is the same one that will go into the Golf Mk 6 Bluemotion, which will have CO2 emissions of only 99g/km.
'We already have 91 models which produce les than 140g/km of CO2 and 20 below 120g/km,' said Dr Winterkorn.
'Our new engines will be the cleanest diesels in the world and make hybrids look old.'