The engineers at Volkswagen are claiming that the above Formula XL1 Prototype has a mpg rating of 261, a staggeringly high rating if it turns out to be true. The hybrid car is set to be unveiled at the Qatar Motor Show this week, an interesting choice of show for a car designed to drastically cut oil consumption and the resulting demand for oil from the Middle East.

The XL1 is a rear wheel drive electrical/diesel plug-in hybrid car with an onboard diesel generator that acts as a range extender whilst also contributing power when required for highway speeds or acceleration.

VW have said the XL1 has a 22 mile range on batteries alone and has a drag coefficient of .28, similar to a Chevy Volt and slightly higher than the Toyota Prius (.26).

VW will be selling the XL1 globally starting in 2013 which begs the question, would you buy one of these over a plug-in Prius or a Chevy Volt?

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