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I seem to recall reading a few years ago that Audi was going to adapt this concept. I think it is a great idea. Build a simple, light, cheap series hybrid powered by an engine barely powerful enough to run it at cruising speeds. The weight/cost savings of not needing a monster sized battery pack easily pay for the engine.
I think the ultimate application would be to also have a direct mechanical linkage for highway cruising, sort of like the new Accord hybrid. This saves a good bit of efficiency over generating power to run a motor. The weight/cost is worth it, IMO.
This concept is what the volt should have been. The volt uses a much larger than neccessary engine.
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