This is an excerpt from EERE Network News, a weekly electronic newsletter.

August 20, 2008

Volkswagen Launches Clean Diesel Jetta Sedans and Wagons

Volkswagen of America, Inc. announced on August 18 that the clean diesel Jetta TDI sedan and SportWagen are now available for delivery in the United States. The new clean diesel vehicles run only on ultra-low sulfur diesel and meet emission standards in all 50 states. The Jetta TDI sedan achieves 29 miles per gallon (mpg) in the city and 40 mpg on the highway, according to the U.S. Environmental Protection Agency (EPA), but Volkswagen claims the vehicle achieves higher mileage in real-world driving conditions. According to EPA estimates, the Jetta wagon achieves a fuel economy of 21 mpg in the city and 29 mpg on the highway. Both vehicles also earn a $1,300 federal tax credit, as they qualify as Advanced Lean Burn Technology Motor Vehicles under a tax law that was established by the Energy Policy Act of 2005. Under that tax law, only the first 60,000 qualified vehicles sold by each manufacturer will earn the full credit, after which the credit will be first reduced and then eliminated. Note, however, that the tax credit may be effectively reduced for buyers that are subject to the alternative minimum tax. See the Volkswagen press release and Web pages for the Jetta TDI sedan and SportWagen.