On Monday Volkswagen introduced a hybrid concept car the company said will get 45 miles per gallon by combining a four-cylinder gasoline engine from Volkswagen’s TSI with a 1.1 kWh lithium-ion battery.

When the New Compact Coupe’s gasoline engine isn’t needed, it shuts off and is disengaged from the transmission to cut down on drag, including at highway speeds. The braking system can recover energy by storing it in the battery, a Volkswagen spokesperson said at the concept car’s unveiling at the North American International Auto Show in Detroit.

The electric motor, mounted between the engine and a 7-speed automatic gearbox, can be used for pure electric driving, the company said. The 1.4-liter gasoline engine generates 150 horsepower, and the electric motor produces 27 horsepower.

The New Compact Coupe’s 8-inch touch screen can control the radio and navigation system. Climate controls are separate, located immediately below the screen. The interior seats four comfortably.

With a sharper, more sculpted front fascia than its Golf and Jetta siblings, and a deep line running the length of the sides, the Compact Copue comes across as an affordable version of the Audi A5.

Although VW claims the Coupe is only a concept at this stage, the level of detail and Volkswagen’s lack of an existing credible coupe offering indicates that a production version should be on the way shortly. I think if VW is smart, they’ll abandon the slow-selling Eos and offer a retractable soft-top version a few years after the Coupe hits the market.

View a previously written post by Mouli Cohen about concept cars