Volkswagen’s Tiguan [say “tee-gwan”] concept is a thinly veiled look at what the 2008 production Tiguan, VW’s first small SUV, will look like. The Golf/Rabbit-based SUV borrows styling attributes from the larger Touareg but is roughly the size of a Honda CR-V. The most significant aspect of the Tiguan concept is its diesel engine, which will be included in the production version.

After a one-year hiatus, diesel power will return to the VW lineup. Powering the concept is VW’s 50-state-compliant 2.0-liter turbo-diesel four-cylinder engine. This “clean” diesel will be optional on the 2008 Jetta and Rabbit. In the concept, this squeaky-clean diesel produces 140 horses and an impressive 240 pound-feet of torque. Exhaust after-treatment systems include particulate filters, catalytic converters, and an NOx treatment system that does not use urea. When the Tiguan reaches showrooms late this year, that optional diesel engine will be joined by VW’s familiar 200-hp, 2.0-liter turbocharged gasoline engine and an optional 3.6-liter V-6 with 280 horsepower. Prices should start as low as $24,000 and run to 35 large for a fully loaded example.

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