Volkswagen has shifted its plans to release a Hybrid Touareg, not a hybrid Jetta in 2010 as model year 2011. VW believes the extra cost of a hybrid powertrain can be made up more easily than the Jetta could. If the hybrid system costs $2500 more to install, the percentage increase to the pricetag of a Touareg would be much lower than that of the Jetta.
But then, we've seen these sorts of plans come and go out of VW before. There was going to be a hybrid Cayenne, a hybrid Jetta, hybrid Golf, and a hybrid Touareg. It's unclear which, if any, will actually make it to production and begin sales in the US. Although VW has been clear all along on their decision to build their own hybrid system.
VW tends to focus in on diesel engines. We'll just have to wait and see what they ultimately decide.