2009 VW Tiguan

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New models such as the Tiguan and the new CC sedan have helped VW offset a huge drop in sales for the Rabbit and Passat. However, neither of the new models does big volume: VW only sold 2,880 CCs and 1,633 Tiguans in the first two months of this year.

Behind the Wheel

You feel confident in the Tiguan in just about any situation. The suspension is taut without being harsh, yet smoothes out bumps in the road quite well. There's little body roll when you throw the vehicle into a curve. The brakes have real bite and seem to bring the Tiguan to a stop faster than those of its main rivals.

The advantage of the turbo-charged engine is that the Tiguan is quicker than any of its four-cylinder-powered rivals. I clocked my test Tiguan, an all-wheel-drive SEL with an automatic transmission, at 7.9 seconds in accelerating from 0 to 60. Car and Driver got a time of just 7.3 seconds in the front-wheel-drive Tiguan with a stick shift. Among the rival compact SUVs I've mentioned, only the six-cylinder Rav4 is speedier.

The Tiguan's interior isn't fancy, but fit and finish are excellent, and the materials used are high quality and good-looking. The optional panoramic sunroof extends over the entire seating area of the cabin, giving the car an airy, open feel. There are numerous handy storage areas, including bottle holders molded into the doors, and clever storage slots for credit cards and coins on the dash. One downer is that VW has stashed the CD changer in the center console between the driver and passenger, limiting storage space there.

The Tiguan is almost exactly the same size as the Escape, and 7.6 inches shorter than the Rav4 and 3.6 inches shorter than the CR-V. It seats a maximum of five, though putting three large adults in the rear seats would be cramped. However, the VW's flexible interior design helps offset its diminutive size. The rear seats fold down and are adjustable in two sections, and move forward and back with about six inches of travel. That plus the tilting and telescoping steering wheel make it easy to adjust the front and rear seats to accommodate plus-size passengers.

A major downside: Luggage space behind the rear seats is very limited. Towing capacity is 2,200 lbs, enough to accommodate a small boat or trailer.

Buy it or Bag It?

The '09 Tiguan's recent average selling price is $27,642, according to the Power Information Network (PIN). However, you may be able to do better than that because through VW is offering $1,000 rebates on the Tiguan in many regions of the country through May 4.

The Tiguan is a bargain compared with more genuinely upscale models such as the BMW (BMGW) X3 and Lexus RX 350, which sell for an average of $44,231 and $38,172, respectively, according to PIN. However, the VW costs significantly more, on average, than the Ford Escape ($23,156), Honda CR-V ($23,841), Nissan Rogue ($23,561), and Mazda CX-7 ($24,165). Ditto for the newly redesigned Subaru Forester ($23,841), which comes standard with all-wheel drive, and the four-cylinder Toyota Rav 4 ($23,253). (PIN, like BusinessWeek, is a unit of The McGraw-Hill Companies.)

Among all these rivals, the Toyota Rav4 powered by a six-cylinder engine looks awfully attractive. The six-banger Toyota has been selling for an average $27,455, about the same as the Tiguan, and is much faster, gets slightly better mileage (19 city, 26 highway), seats up to seven and has more luggage space.

Still, the Tiguan left a very positive impression on me. It occupies a niche somewhere between models like the Rav4, Ford Escape and Honda CR-V and the far more expensive BMW X3 and Lexus RX 350. If you're considering any of those models, the Tiguan is well worth a test drive.

Click here to see more of the 2009 Volkswagen Tiguan.

Thane Peterson reviews cars for BusinessWeek.com.