BMW AG introduced a hybrid-powered version of its new 5-Series sedan, called the ActiveHybrid 5.

This marks a significant change in the company’s philosophy in the last several years. When the Toyota Prius and a few other hybrid models began to take off, the German car maker said it wanted to avoid the obvious inefficiency of carrying two power systems in one vehicle.

The new car adds a 55-horsepower electric motor for a combined output of 335 horsepower and the ability to travel on electric power alone for short distances. The hybrid power system charges its lithium-ion battery while the car is braking or coasting, with the electric motor acting as a generator.  A driving mode called ECO PRO shuts off and decouples the gasoline engine while coasting at speeds of up to 100 mph to make the most efficient use of energy that might otherwise be wasted.

Whats more is that the car’s drive-system electronics are also are linked to its navigation system, allowing analysis of the route and conditions. The car then adjusts to operate at high efficiency levels based on the route.

The BMW ActiveHybrid 5 arrives at US BMW centers in March 2012.