Volkswagen has revealed a new compact coupe hybrid model at the Detroit Motor Show which produces under 100g/km of carbon dioxide.

The concept is fitted with a 1.4-litre TSI engine developing 148bhp linked to a seven-speed DSG gearbox and an electric motor powered by a lithium ion battery.

The electric motor, which generates 25bhp, can either work independently of the engine to make the car a full hybrid or in tandem to provide a useful boost for overtaking.

The concept also features a ‘coast down’ system that takes the form of a clutch that disengages the TSI engine from the DSG transmission when not required to reduce friction. In addition, the kinetic energy that would otherwise be wasted is recovered through the electric motor which channels the power back to the lithium ion battery.

VW says the new system allows the compact coupe to reach 0-62mph in 8.6 seconds and a top speed of 141mph while still producing 67.2mpg and carbon dioxide emissions of 98g/km of CO2.

The vehicle remains a concept at present with no immediate plans for production.