Editor's Rating:
The Good: Mileage, low cost of diesel fuel, cheap sticker price, handling
The Bad: Volatility of diesel prices, VW's rep for iffy reliability
The Bottom Line: A discount German driver's car that sips fuel like a hybrid
Up Front
If you're considering buying a hybrid vehicle such as the new Toyota (TM) Prius or Honda (HMC) Insight, be sure to check out Volkswagen's (VOWG) new diesel-powered '09 Jetta TDI before signing on the dotted line.
Diesel passenger cars have never caught on in the U.S. as they have in Europe, where they account for about half the market, partly because in recent years they had trouble meeting the stringent clean air regulations in states such as California and New York. But diesel-powered cars are an attractive alternative to gas-electric hybrids now that they can meet emissions standards in all 50 states.
VW's new Jetta TDI is quicker and sportier and handles better than most hybrids, yet its $23,000 starting sticker puts it in the same price class as the 2010 Prius and Insight. Indeed, the TDI costs only about $2,000 more than a comparable gasoline-powered Jetta, yet the TDI qualifies for a $1,300 federal tax credit, so the real price premium for most buyers is only $700. (By contrast, Honda and Toyota hybrids no longer qualify for federal tax credits.)
The TDI, which seats up to five, also is the roomiest nonhybrid model that comes closest to rivaling the fuel economy of hybrids. The Environmental Protection Agency rates the TDI sedan at 30 miles per gallon in the city and 41 on the highway with a stick shift, 29/40 with an automatic. The 2010 Prius (51 city/48 highway) and Insight (41/43) do better, especially in the city. But Mike Omotosa, a powertrain expert at J.D. Power & Associates, notes that EPA tests tend to underestimate the fuel efficiency of diesels. VW had the new Jetta independently tested under real-world driving conditions and found that it gets 38 mpg in the city and 44 on the highway—which makes it competitive with every hybrid except the new Prius. TDI owners often report getting more than 50 mpg during highway cruising.
On top of all that, the price of diesel fuel—which had been as high, or higher, than that of premium gasoline—has plunged in recent months. As I write this, diesel costs an average of about $2.35 per gallon nationwide, vs. just over $2.50 per gallon for regular gasoline.
The front-wheel-drive Jetta TDI is powered by a 2.0-liter, 140-horsepower turbo-diesel engine. A six-speed stick shift is standard, and a dual-clutch six-speed automatic is available as an option.
The Jetta sedan comes with the same standard features as a midlevel, gasoline-powered Jetta SE, plus a fancy instrument cluster, a leather-wrapped multifunction steering wheel, and a 115-volt power outlet. Major options are relatively inexpensive. Add $1,100 for the automatic transmission, for instance, and $1,000 for a sunroof. You can also customize the TDI in various ways. A "Ground Effects" package that includes a front spoiler, side sill extensions, and a rear valence goes for $1,699. Custom alloy wheels in a variety of styles and colors can be added for $1,350 to $1,799.
There's also a family-friendly "SportWagen" (i.e., station wagon) version of the TDI that rivals a small SUV or crossover vehicle in its cargo hauling capabilities. The TDI SportWagen starts at $24,570 and has nearly 33 cubic feet of luggage space behind its rear seats, rising to 67 cubic feet with the rear seats folded down. That's only slightly less hauling capacity than a Honda CRV.
The Jetta has four- and five-star government crash test ratings and earned the Insurance Institute for Highway Safety's top "good" rating in frontal offset and side crashes.
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