2010 Volkswagen Rabbit Technology

Thrifty diesel engines account for some 50 percent of all car sales in Europe, where gas costs more than double what it does in America, so VW and other European automakers are experienced "oil burner" advocates. VW has long offered a diesel option in many of its cars, including the Rabbit/Golf and Jetta. Indeed, those VWs have been the only diesel compact cars available in the U.S., and their "TDI" (Turbo Direct Injection) engine has won a small but loyal following for its high fuel economy--an easy 45-mpg in Consumer Guide tests.

Now VW has a new 4-cylinder "clean diesel" engine that rolls out this summer as an option for Jetta sedans and wagons. We expect it will eventually migrate to the hatchback line, though perhaps not before the redesigned 2010 Volkswagen Rabbit reaches showrooms.

Replacing the familiar 1.9-liter TDI, the new 2.0-liter turbodiesel four reportedly spins out 140 horsepower and a strong 235 pound-feet of torque, up from 100 horsepower and 177 pound-feet. Sources say an "after-treatment system" and a particulate (soot) filter will allow sale in all 50 states despite much tougher U.S. standards on diesel emissions. Like the old TDI, the new one will carry a price premium over standard gasoline engines, but VW has yet to suggest what that might be.