VW says to make hybrid parts on its own -magazine

FRANKFURT, Nov 1 (Reuters) - Volkswagen (VOWG.DE) plans to produce virtually all the components for motors used in hybrid and electric vehicles on its own unlike competitors who rely on suppliers, a German magazine reported.

"We want to manufacture the powertrains for hybrid and pure electric cars on our own in order to master the technology and possibly have a competitive advantage," VW brand board member Werner Neubauer told auto motor und sport in an interview to be published on Wednesday.

The only exception will be battery cells, Neubauer added.

Unlike Volkswagen, domestic competitors Daimler (DAIGn.DE) and BMW (BMWG.DE) have opted to draw on batteries supplied from automotive parts group Continental (CONG.DE) for their planned lithium-ion mild hybrids due next year.

Neubauer, who is responsible for the components division, also said Volkswagen was considering local production of transmissions to supply its planned U.S. assembly site in Chattanooga.

"We produce engines and gears ourselves worldwide and that is the case for North America too. We are examining a local production of state of the art dual clutch gears," Neubauer said.

VW was looking into expanding its plant in Mexico or building a new site in the United States, he said.

The magazine reported, citing company sources, that Volkswagen wants to invest 3.2 billion euros ($4.09 billion) in the coming five years into new component production sites.

Neubauer declined to comment the figure but said: "Around 800 million euros to 900 million euros will go into our plant and production development and then we will gradually build up," Neubauer said. (Reporting by Nicola Leske; editing by Chris Pizzey)