Spruced-up Touareg a mixed bag

Volkswagen's priciest -- and biggest -- vehicle in America is spruced up for 2008 with subtle styling updates, more power and improved safety.

The 2008 VW Touareg five-passenger sport utility vehicle also retains the across-the-board, five-out-of-five-stars crash test ratings from the federal government that its predecessor had.

But starting manufacturer's suggested retail price, including destination charge, has increased to $40,000, and Consumer Reports magazine's predicted reliability for VW's only SUV is "much worse than average."

Indeed, the Volkswagen brand has remained stuck somewhere in the bottom five automotive brands in J.D. Power and Associates annual Initial Quality Study since 2004. In addition, the Touareg has never been among the top three SUVs in Power's yearly quality study.

These factors -- plus the Touareg's truckish fuel economy and a slew of competing and often lower-priced SUVs and crossover SUVs -- have combined to dampen consumer interest in the Touareg in America.

U.S. sales quickly peaked at 27,706 in calendar 2004, shortly after the SUV debuted in 2003, and this year are on pace to total fewer than 10,000.

To be sure, the Touareg started out as a heralded vehicle -- VW finally would be joining in America's burgeoning SUV wave. And even today, the Touareg is a distinctive SUV that mixes VW's well-crafted interior and a heavy, solid, overall feel with a stiffer-than-expected, on-road ride.

It's also worth noting that although the Touareg has a higher starting price than a base, 2008 Lexus RX 350 and many other upscale SUVs, it's the third lowest-priced European SUV sold on these shores.

Only the 2008 Volvo XC90 and BMW X3 have lower starting retail prices.

The 2008 Touareg is offered with a choice of three capable engines. The base unit -- a 3.6-liter V-6 -- develops 280 horsepower, while the 4.2-liter V-8 that was in the test Touareg churned out a commendable 350 horses.

For 2008, this V-8 now has VW's direct-injection fuel system, which largely accounts for the 40-horsepower increase from last year's V-8-powered Touareg.

Though the 2008 Touareg weighs more than 5,000 pounds, the V-8 provided good power to move it along the road smoothly and briskly.

The accelerator pedal was sensitive to the slightest change in foot pressure, so I didn't experience any unnerving coasting of the SUV when I let up on the gas. Instead, the Touareg would begin to slow progressively, and I often modulated my speed in traffic without needing to press the brake pedal.

Torque from the V-8 peaked at 324 foot-pounds at 3,500 rpm, and engine sounds -- what I could hear of them from the mostly soundproofed interior -- were pleasing.

But fuel economy is the pits, with a government rating of just 12 mpg in city driving and 17 mpg on the highway. Even the 2008 Touareg's V-6 isn't great, with a 14/20-mpg rating, matching that of a 2008 Chevrolet Suburban with three rows of seats.

Note the Touareg comes standard with permanent four-wheel-drive, so there's no weight- and gas-savings offered in comparison with the Suburban's two-wheel-drive version.

VW's diesel engines can help. In fact, the best government mileage -- 15/20 mpg -- for a 2008 Touareg comes with a twin-turbo, 5-liter, diesel V-10 generating 310 horses and a whopping 553 foot-pounds of torque at a low 2,000 rpm. But the starting price for this model is $69,000. VW officials have said they plan to add a diesel-powered V-6, but it's not expected until later in 2008.

VW does plan to introduce a smaller, more fuel-efficient SUV -- the Tiguan -- in 2008.

Passengers can enjoy sitting up well above the pavement in the Touareg, though the climb to get inside is not daunting. Seats have a new design and a firmness that's characteristic of VW's cars, and people who like a good amount of lumbar for their backs won't be disappointed.

In the test Touareg, the luxury plus package added some lovely leather seat trim and upgraded center console/armrest. The optional Dynaudio system provided terrific sound.

Keep in mind that many amenities in the Touareg are standard, including power rear liftgate, a rich-looking, fully carpeted cargo area, 12-way, power-adjustable driver's seat and leather-wrapped steering wheel with audio buttons built in.

The Touareg already had a full complement of air bags, including head curtain bags. Every seat has an adjustable and lockable head restraint, too.

For 2008, VW upgraded its electronic stability control system to take into account vehicle turning angle and turning speed to detect potential rollovers.

VW also upgraded the brakes on the Touareg for better off-road performance on gritty and sandy terrain. And yes, the Touareg is a good performer n the wilderness. In fact, the Touareg set records in climbing the highest volcanic peaks in Chile.

Company officials play up the new front bumper, larger rear spoiler and revamped exhaust pipe appearance on the 2008 Touareg. But I suspect most consumers won't notice any huge styling differences between the new Touareg and its predecessor.