For 2010, the  front of the Jetta SportWagen (known as the Golf Variant in other parts of the globe) was fitted with the new design language which replaces the older headlights and somewhat glitzy, vertical chrome grill with a sleek, cleaner front end and horizontal lines.  With V-Tex leatherette seating surfaces, leather-wrapped steering wheel, brake handle, and shift knob, the interior (which comes straight from the Golf VI) gives the Sportwagen the appearance, and to a degree, the feel of a much more expensive car.

These luxurious accents were complemented by the following, all standard: Sirius satellite radio (including six months of service), a ten-speaker AM/FM/CD stereo which can read MP3 CDs, a Bluetooth mobile phone connectivity with voice control, a 115V power outlet, an integrated roof rack, and a power sunroof. The 2010 Jetta models also come standard with a three-year/36,000 mile warranty which includes all scheduled maintenance as well as 24-hour roadside assistance for the warranty period.

My SportWagen came with the six-speed DSG transmission with Tiptronic, a dual-clutch transmission that uses direct shifting , automatically engaging and disengaging gears without the need for a clutch pedal.  The DSG transmission’s default mode is fully-automatic operation, but manual (and clutchless) shifting is also an option for drivers.

When it came to acceleration, however, the SportWagen’s pickup was a bit sluggish, which did not inspire confidence, for example, when attempting to enter highway on-ramps at speed.  
Volkswagen publishes a 0-60 mph figure of 9.5 seconds (the  Jetta sedan, which is a different car altogether, does the same run a full second faster).  At times acceleration felt delayed and abrupt when it did kick in, but once the car picked up speed, the ride and handling were smooth, whether on highways or suburban streets.

Fuel economy was superb: After a very busy week, including two roundtrips between Atlanta airport and my parents’ home 45 miles away, as well as numerous daily, shorter trips around Atlanta’s sprawling suburbs, I still had more than half a tank of fuel left when I dropped the car off at the airport. [While EPA estimates put city/highway fuel economy at 30/42 mpg (7.8 l/100 km/5.6 l/100 km), third-party certifier AMCI achieved 38/44 mpg (6.2 l/100 km/5.3 l/100 km) when testing the Jetta TDI in real-world conditions.]

The SportWagen offered plenty of storage space at 32.8 cubic feet in normal seating conditions and 66.9 cubic feet when the rear seats are folded down, but upon closing the trunk after stowing my luggage, the cargo-area flap did not flip back down automatically—it had a habit of staying up and blocking the rear window. At first, I didn’t realize this until after I was back in the driver’s seat and looked in the rear-view mirror. After getting back out of the car and pushing it down manually a few times, I finally got into the habit of putting the flap back down before I returned to the driver’s seat.

The Jetta SportWagen TDI comes with over 40 active and passive safety features including front, thorax, and side curtain airbags for both the driver and front passenger, as well as side curtain airbags for rear passengers, as well as anti-lock braking (ABS), anti-slip regulation (ASR), electronic differential lock (EDL), and Electronic Stability Program (ESP).. Blinkers are built right into side mirrors, and nighttime visibility was enhanced by dual reflector headlamps. It’s saying a lot that my mother, who is accustomed to the greater height, space and girth of family vans, felt completely safe and comfortable in the SportWagen.

Despite the slow acceleration, the VW Jetta SportWagen TDI offers great value in an attractive, fuel-efficient package.  Best of all, it’s eligible for a $650 U.S. federal income tax credit in 2010.

Eva Leonard is a contributor to The Diesel Driver and editor-in-chief of Business Traveler magazine.-

A few months ago we reviewed the world’s fastest gas-electric hybrid, the BMW ActiveHybrid X6, and that title has now passed to the BMW ActiveHybrid 7.  This may sound like an odd title for a hybrid but, as we found out in our tests, it proves one can have fun and enjoy better fuel economy at the same time.

The previous version of the BMW 7er Series (the 7er Series was all new for model year 2009) was available in a limited-edition, duel-fuel hydrogen powered configuration and the engineers at the company were hard at work to create additional, green options for their customers.

Enter the ActiveHybrid 7.  Unlike the ActiveHybrid X6, which is a full hybrid that has an electric-only means of propulsion, the ActiveHybrid 7 is a mild hybrid, an approach that adds less weight and complexity (and cost) to the vehicle.  The mild-hybrid platform was jointly developed by BMW and Mercedes-Benz as an outgrowth of a cooperation that began in 2005 and Mercedes uses the same platform in the S400 that we reviewed last month.

A mild hybrid is a gasoline-fueled vehicle equipped with an electric motor that allows the engine to be automatically shut off whenever the car is braking, coasting, or stopped. A mild hybrid also uses brake energy regeneration to recover energy that would normally be wasted as heat through the brakes.  The integrated electric motor acts as a generator when coasting or applying the brakes and feeds electric power into the battery.    As a result, they do not require the same level of battery power and also do not achieve the same increase in fuel economy as full hybrids.

The ActiveHybrid 7 has an upgraded twin-turbo direct injection V-8 engine with a three-phase synchronous electric motor, giving it a combined output of 455 hp and maximum torque of 151 pound-feet.  The electric motor is positioned between the engine and the torque converter and power is transmitted via a new eight-speed transmission.

It also has almost the same amount of luggage space as the gasoline-only version as the 120-volt battery occupies only one cubic foot.

When the driver accelerates, electricity (from the battery) is fed back into the on-board power network and provides power directly to the rear wheels, relieving the combustion engine from this task.

All this translates into 0-60 mph in just 4.7 seconds with 15% better fuel economy than the (slower) 750i.

The ActiveHybrid 7’s transmission uses start-stop technology to avoid engine idling when stopped, although other systems such as air conditioning remain operational as power is supplied through the lithium-ion battery.  Similar to the ActiveHybrid X6, it is equipped with light-alloy Aero wheels that reduce drag.

The car’s Central Display (see video below) can provide a detailed real-time view of the interaction between the V-8 engine and the electric motor including the current charge level of the battery and the real-time flow of energy.  A bar graph that shows the current efficiency over the past fifteen minutes is also available.

In terms of safety, the high-voltage system is fully insulated and the battery is protected by a steel housing.  In the event of a collision, the entire high-voltage system is immediately switched off.

After all this, you may wonder how the ActiveHybrid 7 drives.  I spent a week with the ActiveHybrid 7, driving it on twisty mountain roads, highways, and city streets, and I was hard-pressed to tell the difference between it and the V-12 powered 760Li when hitting the accelerator.  The start-stop feature is reasonably inconspicuous although a quick move from brake to gas can result in a bit of a jerk.  Thanks to the tiny battery and mild hybrid system, the 7er’s weight distribution was preserved, which bodes well for handling (this is one of the reasons BMW uses different hybrid systems in the X6 versus the 7er).

The firm and responsive ride was adjustable via the four driver-selectable settings in the Driving Dynamics Control system.  Set for sport, the ActiveHybrid 7 attacked twisties with a vengeance.  On some pot-holed New York City streets, I didn’t notice the bumps go by.

The fuel economy I got during that week, however, served as an excellent reminder that I was, indeed, in a hybrid vehicle.  It consistently got 3 mpg more than the 750i in city driving, averaging 20 mpg.  My overall fuel economy for the week was 24.5 mpg.

Best of all, the ActiveHybrid 7 qualifies for a $900 IRS Alternative Motor Vehicle Credit.

In the period from 1998 through 2008, BMW reduced its overall energy consumption by 26% and the emission of CO2 by 24% per produced vehicle.  This comes from multiple innovations in manufacturing, including many at the BMW plant in Spartanburg, South Carolina, which obtains 63% of its energy from methane gas from a nearby landfill. This allowed the plant to reduce its CO2 emissions in 2006 alone by 53,593 tonnes.  BMW has also reduced its water consumption per manufactured vehicle by 47% since 1996.

So it was not surprising when BMW, in September 2006, introduced the BMW Hydrogen 7. The Hydrogen 7 is equipped with a dual-mode 12-cylinder internal combustion engine based on BMW’s 12-cylinder 6.0-litre gasoline engine used in the 7er Series.

The BMW Hydrogen 7 was the world’s first hydrogen-drive luxury performance automobile for everyday use (n.b. BMW previously built hydrogen-powered test vehicles, such as the 750HL, but they were not put into production).

The 203.9”-long Autobahn cruiser came equipped with every conceivable option, including BMW’s Comfort Seats, which feature 14-way power adjustment; Active Roll Stabilization, an active suspension control system designed to reduce body-roll, or lean, when cornering; Bluetooth wireless technology connecting the mobile phone to the car; Comfort Access, which allows the driver to leave the key in his pocket to unlock, start, and lock the vehicle; the iDrive cockpit controller; and the Logic7 Audio System, with Digital Signal Processing (DSP) and 13 speakers.

The Hydrogen 7 went through the standard BMW product development process and was produced in Dingolfing, Germany, alongside other production BMWs, including the gasoline-only and diesel-powered 7er and 5er.  Click here to continue to page 2.

Indeed, given Volkswagen’s long history with diesel in the U.S. (only surpassed by Mercedes-Benz in this area), it’s not surprising that almost 50% of Jetta buyers opted for the diesel version of that car.

The 2010 Touareg gets its name from the nomadic Tuareg people, believed to be descended from the ancient Saharans.  The Tuareg operated the trans-Saharan caravan trade that connected the major cities on the southern edge of the Sahara for two centuries.  What the Touareg also gets from its namesake is excellent off-road handling, thanks to great ground clearance and a permanent all-wheel drive system with low-range gearing.

The Touareg shares its platform with the Audi Q7 and the Porsche Cayenne and provides many of the amenities of the more expensive vehicles at a reasonable price, including rear parking assist, Bluetooth, satellite radio, heated front seats, dual-zone climate control, and a power tailgate.

Inside the cabin, one has to look at the badge on the steering wheel to remind oneself that it’s a Volkswagen.  The high-quality plastics as well as the fit and finish are top notch as well.  The optional hard-drive-based satellite navigation system is fairly easy to use and got us where we needed to go.  The optional Dynaudio sound system has a great sound to it and the Lux Limited Package adds soft Cricket leather seats as well as metal trim and a good-looking ground effects kit to the exterior.

The 2010 Volkswagen Touareg comes with front-seat side airbags and full-length side curtain airbags, which played a role in the National Highway Traffic Safety Administration’s giving the Touareg a perfect five-star rating for frontal and side impact.

While I didn’t get to take the Touareg for a drive in the desert, driving it on city streets and highways was very satisfying. The ride was unquestionably firm and the interior was an oasis of quiet luxury. For a car of its size and heft, handling was surprisingly responsive.

The Touareg’s 3.0-liter TDI V-6 – while smaller than the petrol 3.6-liter V-6 – is an imperceptible 0.3 seconds slower but the 25% better fuel economy is palpable.  The car consistently delivered or exceeded the EPA mileage rating of 18 mpg city/25 mpg highway.

While the diesel Touareg isn’t for everyone, and the TDI costs $3500 more than the gasser before factoring in the tax credit, the price premium is less than for most hybrids and the stellar fuel economy for a vehicle this size can’t be beat.

The basic 5er Series configuration hasn’t changed since 1972: front engine, rear-wheel drive, 50-50 weight balance, good mixture of ride comfort and handling, and room for four adults with luggage.  Since its launch, more than 5.5 million of the 5er Series have been sold.

The 5er Series is the epitome of the big German sedan and 50% of BMW’s profits come from this model.

So the introduction of a new 5er Reihe (5er Series) is critical for the company.  At the company’s 2010 annual meeting a few days ago, Norbert Reithofer, BMW’s Vorstandvorsitzender (CEO), announced that BMW has “received considerably more orders than planned” for the 5er Series, adding that the 5er Series “will be a key driver of sales, image and profit for the BMW Group.”

The sixth generation 5er Series loses the unusual styling of its polarizing predecessor and pays homage in many respects to the 5er Series models that preceded it.

While it would be overly simplistic to say that BMW has returned to the one sausage/three lengths principle, the new 5er looks more like a part of the BMW family BMW (and quite similar to the new 7er Series) than its predecessor ever did.

In Europe, buyers get a choice of four petrol and three diesel models.  The U.S. market currently gets two petrol models, the 535i and the 550i but more models, including a diesel, are on the way.

To get to know the new 5er better, I spent a week with the 530d.  I started in Munich, drove 366 kilometers to Prague, and took several drives in the Czech countryside,  including a 360-kilometer roundtrip from Prague to Třebíč (Trebitsch) , and the return trip back to Munich.

The car is aggressively elegant.  To quote BMW chief designer Adrian von Hooydonk, “The 5-series is designed to express autobahn speed even when standing still.” The multiple contours on the sculpted hood and sides add a layer of depth not present in earlier models.  People who walked over to look at the car puzzled over the hood, trying to discern if it were indeed concave or convex (it’s both).

The interior mirrors the layout of the new 7er, with richer materials and softer, supple leather.  The wood trim looks more like wood (even though BMW doesn’t use imitation wood) and the Comfort Seats are even more comfortable than before.  Click here to continue to page 2.

The so-called Magic Seat, while not having any apparent connection to wizardry, has seatbacks that fold flat and cushions that can be flipped upward, thereby creating a tall load area directly behind the front seats.  This puts the Fit’s maximum cargo capacity at an incredible 57 cubic feet.

The Fit, while not upscale, is not at all barebones either.  Seats are comfortable, covering in an elegant black cloth, and the materials used the cabin appear to be of better than average quality.  The Fit comes with air conditioning, a sound system that supports MP3 and WMA playback, an auxiliary audio input jack (USB is optional), and power windows, mirrors, and locks.  The car (rather inexplicably) comes with ten cupholders, or two per passenger.

The optional navigation system is a bit old in terms of technology (it’s DVD based, for starters) but it works well, is easy to use, and has more than seven million points of interest.  Those ordering the navi also get Vehicle Stability Assist (VSA), also known as electronic stability control.

So why is The Diesel Driver writing about the Honda Fit in the first place?  It’s not even a hybrid, I hear you all cry.  In its base form, the Honda Fit gets uses only 8.4 l/100 km (28 mpg) in city driving and 6.7 l/100 km (35 mpg) on the highway.  Combined fuel usage is 7.6 l/100 km, or 31 mpg.  The combined fuel economy is better than the BMW 335d, which uses 8.7 l/100 km (27 mpg) although the Bimmer only uses 6.5 l/100 km on the Autobahn.

Our test car was the Fit Sport which came equipped with larger (16”) wheels and tires and front and rear stabilizer bars.  It also comes with rocker moldings, a roof spoiler, and front and rear body bits to add a more sporty look.

Driving the Fit Sport on smooth pavement was a pleasure.   Unfortunately, on rougher surfaces, the driver and passengers felt every bump.  The car’s tall profile makes it a target for getting tossed around in crosswinds, making for an unpleasant ride.  The five-speed automatic transmission shifted smoothly and seemed nicely matched to the engine.

The base Honda Fit, at under $15,000 MSRP, is a great buy given the amount of standard equipment and interior room included in the price.  And the base model also has better fuel economy; this Fit uses only 8.4 l/100 km (28 mpg) in city driving and 6.72 l/100 km (35 mpg) on the highway).  Just imagine what these figures would look like with a diesel engine!

For 2010, Mercedes designers gave their Übersedan a facelift.  From all outward appearances, little was changed.   The front of the car received a new grille and front bumper while the rear got an integrated exhaust.  LEDs are now used for taillights and daytime running lights.  But these minor exterior changes mask the significant updates found within.

The S-Class now has many of the new technologies introduced with the redesigned 2010 E-class, including adaptive high-beams, pedestrian detection in the night vision system, a lane-departure warning system, and the new Attention Assist driver drowsiness warning system.

Mercedes’ Autobahn cruiser continues to be one of the most comfortable, refined, and luxurious vehicles on the market.  It’s also now one of the most green, with the addition of the S400 Hybrid to the line-up.

The Mercedes-Benz S400 Hybrid has the distinction of several firsts.  It is the first production hybrid automobile to use lithium-ion batteries.  It’s the first Mercedes-Benz with a hybrid drive.  And it is also the first German flagship sedan to be available as a hybrid-electric (BMW has since introduced the Hybrid 7; Audi displayed a hybrid A8 concept car at the 2010 Geneva Motor Show. The first hybrid in the Über luxury sedan market is  the Lexus LS600h L but more on that later.).

The Mercedes-Benz approach to hybrids is one that adds less weight and complexity to the vehicle.  The mild-hybrid platform was jointly developed by BMW and Mercedes as an outgrowth of a cooperation that began in 2005.

A mild hybrid is a gasoline-fueled vehicle equipped with an electric motor that allows the engine to be automatically shut off whenever the car is braking, coasting, or stopped.  Mild hybrids differ from full hybrids in that they do not have an electric-only means of propulsion.  As a result, they do not require the same level of battery power and also do not achieve the same increase in fuel economy as full hybrids.

The S400 starts off with an Atkinson cycle 3.5-liter V-6 to which Mercedes added a 20-hp electric motor.  The motor serves merely to boost the engine power as it can’t propel the vehicle by itself; it adds 118 pound-feet of torque, something the car desperately needs as it takes 7.2 seconds to go from 0-60 (the gasoline powered S550 requires a mere 5.4 seconds).  The S400 is a big car and it does feel a bit sluggish.

The S400 displays its battery status from a display in the speedometer, which shows the flow of power from engine to battery to wheels.    When the car is stopped at a light or in traffic, the engine shuts down, thereby saving gas.  Simply taking your foot off the brake pedal causes the engine to restart.

Unlike its more powerful siblings in the S-Class lineup, the S400 Hybrid escapes the gas guzzler tax and gets 5 mpg more in the EPA’s city and highway ratings.  It also escapes the hybrid price penalty, perhaps most evident with the Lexus LS 600h L hybrid, which costs $40,000 more than its conventionally-powered stablemate, the LS 600, and gets only marginally-improved fuel economy.

On the road, the S400 Hybrid has the presence and feel typical of large Mercedes-Benz sedans.  One problem is the electric power steering assist, which allows the engine to stay off when the stop-start system turns it off, results in a driving experience that is largely devoid of any sensation (the S550, which foregoes electric steering, does not have this problem).

In a week’s worth of driving ranging from highway cruising to rush-hour traffic, I frequently found myself using 7.84 l/100 km (30 mpg).  Overall, I used 9.4 l/100 km (25 mpg), which was quite respectable  for the week.

I found the suspension (adjustable from sport to comfort) pampering and the air suspension kept the car well composed in the turns.  The most remarkable thing I found was just how unobtrusively the hybrid system behaved.  I hardly noticed the start-stop function (unless I was looking for it) and the car always restarted without a shudder.  The regenerative brakes, usually the weak point of hybrid systems, felt downright normal.

Finally, the fuel usage and emissions output of the S400 are simply laudable (the S400 is rated as a SULEV, or super low emissions vehicle).  In the coming years, German automakers, among others, will have to meet the ever-increasing fuel efficiency and emissions mandates set forth by European Union and U.S. regulators and the S400 Hybrid is one way to approach this.

The S400 compares favorably to Mercedes-Benz diesel offerings as well.  The S350 diesel is rated at 7.71 l/100 km (30.5 mpg) in fuel economy while the same test rates the S400 Hybrid at 8.11 l/100 km (29 mpg).

Although it’s unlikely that hybrid fans will allow the S400 to knock the Toyota Prius off its throne, the entry-level price point makes it likely that the S400 will become the best-selling S-Class and buyers will be able to enjoy the sumptuous Mercedes-Benz amenities knowing they are using less fuel with each trip.

For the rental period we listed (1-7 April picking up and dropping off in Munich), the 118d would cost E 314.88 and the gasoline-powered 118i cost E500.99.  The Mercedes, part of the company’s Prestige Collection, cost E2111.68!

In the United States, however, diesel-powered rental cars are virtually non-existent but hybrids are plentiful.  Both Hertz and Avis offer the Nissan Altima Hybrid in most if not all airport locations.  The Hertz Green Collection has 35,000 fuel-efficient cars distributed throughout the U.S. including the Toyota Prius and Camry Hybrid as well as the Nissan Altima Hybrid and customers can specify the exact make and model when making a reservation.

We specified the Nissan Altima Hybrid for a visit to Seattle, Washington recently.  This is where the fun began.  Since we were staying in downtown Seattle, it seemed logical to pick up the car at Hertz’ downtown location for the days when driving would be required.  The Hertz Web site allowed us to book the reservation at 4 p.m. on a Sunday and the reservation was confirmed via e-mail.

Arriving a few minutes after 4 p.m., however, on the day of the reservation, we found the Hertz location closed for the day.  The posted hours indicated that the station had closed at 4 p.m.  Bob answered our call to the Hertz reservations line and said that we should have come early to pick up the car.  He suggested calling the airport Hertz office and provided the number.  Unfortunately, no one ever came to the phone despite several calls.

Our second call to Hertz was answered by Dina.  We told Dina that we expected Hertz to somehow arrange for the car to materialize downtown for us and she stated that the only way of getting a car was for us to go to the airport, something that clearly undermines the benefits of having reserved a car at the downtown location.

Dina transferred the call to her supervisor, Matt, who reiterated the same story line and, at our request, transferred us to his supervisor, Barbara Copeland.  This is where we saw true customer service at work.  Barbara spent the next hour and a half trying to get someone at the airport station to pick up the phone, called us back several times with (lack of) progress reports, and finally called, her voice triumphant in having reached Jeff, the Seattle Airport station manager.  Jeff called a minute or two later and asked what time would be most convenient for him to bring the car downtown.  We agreed that between 9 and 10 p.m. would be fine and he drove the 2009 Nissan Altima Hybrid directly to the Four Seasons Seattle, glanced at my driver’s license, and turned over the car keys.

Despite 24,000 miles, the car was in immaculate condition.  Aside from a few small emblems, other drivers would be hard pressed to distinguish our hybrid Altima from the standard model.

The Altima Hybrid has a 2.5-liter four-cylinder engine that is mated to a nickel metal hydride (Ni-MH) battery and the car’s hybrid management system, producing 198 hp and fuel economy of 35 mpg in city driving and 33 on the highway.

The interior was spacious and the cloth seats were comfortable and provide good support.  Since the car received a mid-life refresh for 2010 and our rental was a 2009, I’ll concentrate on the driving experience instead of cosmetics.

The Altima was, for a hybrid, fast off the line but the engine was rough and noisy and the transition from battery power to gasoline engine could be jolting, something Nissan could improve upon since this doesn’t happen with the Toyota Camry, which shares the same hybrid system.

Despite the extra weight (the hybrid weighs 300 pounds more than the gasoline-only Altima), the suspension seemed reasonable taut and handling was nothing if not nimble.

The Altima can run (if one is careful) at up to 40 mph on electric power alone.  Fuel economy during the three days of our rental was excellent.  While we didn’t see reach 35 mpg, we did see numbers consistently in the low 30s.

For 2010, Nissan has added some flair to the Altima’s exterior with a more prominent power bulge on the hood as well to the interior with better fabrics and plastics than in our car.  The drivetrain remains unchanged.

The 2010 Golf is the sixth generation of the car, debuted at the 2008 Paris Motor Show, and went on sale in Europe in early 2009.  It went on sale in the U.S. last October and has an elegant, more aerodynamic design than its predecessors, somewhat reminiscent of the first Golf.  The streamlined exterior helps contribute to improved fuel economy.

The new front fascia shows off the new Volkswagen look with a wider grill that blends into sporty angled headlamps.  A hatch spoiler integrated with the third brake light and new taillights which echo the front design feature integrated clear turn signals and reverse indicators complete the new look.

The 2010 Golf comes in gasoline- and diesel-powered powered versions and the diesel gets the Bosch common rail direct injection system that replaces the much older Pumpe Düse (PD) unit injector that was in older Golfs.

In the U.S., the Golf TDI comes with a 140-hp, 2.0-liter turbo four cylinder that puts out 236 pound-feet of torque, the same engine already available to buyers of the Jetta TDI (unfortunately we don’t get the GTI-inspired GTD with 30 additional horsepower and 258 pound-feet of torque).

At one point, Volkswagen marketed its cars with the slogan “Fahrvergnügen” [a made-up German word that means driving enjoyment, which took aim at BMW’s Freude am Fahren (The Joy of Driving) tagline].  While it still has a way to go before it enters the realm of the sports sedan, the sixth-generation Golf is enjoyable to drive, with a responsive suspension and reasonably sharp (but light) steering.  The Golf took tight corners and twisty roads with aplomb and minimal body roll. As is typical of modern diesels, the TDI was happy to rev and exhibited a decent punch off the line.  The six-speed manual transmission exhibited typical Volkswagen quirks such as the need to push down the shifter to get into reverse.

The turbo diesel’s 236 pound-feet of torque was really useful in overtaking on highways and exiting corners and in-gear acceleration was more than adequate.  Fuel economy was, of course, spectacular.  In our tests, which were a variety of in-town and highway driving, we beat the EPA estimates of 30 mpg city and 41 highway.

The TDI comes with alloy wheels, a sport suspension, Bluetooth, and eight-speaker stereo with Volkswagen’s Mobile Device Interface (MDI), which offers support for USB devices and iPod music players.  Sound quality was decent and the MDI’s interface was easy enough to use.

The (optional) touchscreen navigation system features a very readable high-resolution 6.5” display, an integrated 30 GB hard drive with 20 GB reserved for audio and 10 for nav, support for SD memory cards, and a 3.5 mm auxiliary jack in the center console.

The interior is markedly improved over the fifth-generation Golf. Indeed, the level of refinement is simply head-and-shoulders above other cars in its class.  High-quality plastics and brushed metallic trim contrast nicely with the black analog gauges.  Eight-way (manual) seats are standard and quite comfortable; the rear seats have adjustable head rests and fold separately (60/40) to increase cargo space.  The TDI comes standard with a leather-wrapped steering wheel with controls for the dashboard information display and music.

The 2010 Volkswagen Golf TDI has a more upscale feel than the competitors in its price range and the car’s fuel economy makes it a strong competitor to gasoline-electric hybrids such as the Toyota Prius as well as its more upscale diesel stablemate, the Audi A3 TDI.

The Toyota Prius, the world’s first mass produced gasoline-electric hybrid automobile, was first introduced to the domestic Japanese market in 1997 and launched worldwide in 2001.  Buyers in the United States have comprised more than half of the more than 1.5 million Prius (the plural of Prius is Prius according to Toyota) sold worldwide thus far.

The all-new 2010 Prius is the third generation of this eco-trendsetter.  It’s a bit sleeker and sportier than its predecessors and has a larger engine and revised electric-assist steering system that result in even better fuel economy and greatly improved handling (earlier models gave the driver the unsettling feeling of playing a video game with a joystick instead of steering an automobile).

Indeed, it’s clear that Toyota is aiming to give the car mass appeal from the option list alone, which now includes radar cruise control, the automated self-parking system (Toyota calls it the Intelligent Parking Assistant), heated seats, and Bluetooth with support for audio streaming.   Safety features abound, including a lane-departure warning system that nudges straying drivers back into the correct lane.  One option not in our test car but worthy of note is the solar-powered ventilation system that provides ventilation to keep the car cooler when parked.   On the minus side, Toyota doesn’t offer iPod or USB integration and the navigation system is relatively slow.

The 2010 Prius is available in four trim levels. The Prius II($22,800)  includes keyless entry and ignition, cruise control, a six-speaker sound system, a tilt-and-telescoping steering wheel, and a hybrid display. The Prius III ($23,750) adds Bluetooth connectivity and an upgraded sound system. The Prius IV ($26,550) further adds leather upholstery, heated front seats, an auto-dimming mirror, and driver-adjustable lumbar support. At the top  of the lineup is the Prius V ($28,020), which also gets 17-inch alloy wheels, fog lamps, and LED headlights.

Driving a Toyota Prius continues to be unlike driving almost any other car.  With an EPA rating of 50 mpg (combined), it is the most fuel-efficient car available in the United States.

The Prius starts out under electric power, silently moving ahead at low speeds, and the gasoline engine turns itself on when needed, a transition which is extraordinarily seamless.  The 1.8-liter four-cylinder engine provides power in conjunction with a pair of electric motors (one for propulsion, the other an electrical generator) through a planetary-type continuously-variable transmission, providing 134 horsepower in total.

Thanks to the electric motor and application of sound deadening material, the interior is virtually silent.

The Prius driver has a choice of three modes in addition to normal: EV (battery power for up to half a mile), Eco (sluggish but very economical), and Power (the accelerator pedal’s sensitivity is increased and it provides decent acceleration).  I selected the driving mode based on the current driving scenario.  EV is good for local trips as driving is limited to 25 mph (40 km/h) and the battery must be at least half charged.  Power mode is absolutely necessary for merging into highway traffic and passing.  Eco of course is where the Prius and its miserly fuel usage shine.

There is no conventional dashboard behind the steering wheel. Instead the driver has to look to the digital display just below the center of the windshield, which combines the speedometer, fuel consumption, and the fuel gauge with an energy monitor, fuel consumption history, hybrid system information, and additional fuel economy information.   The display is not only off-center but competes with the road for the driver’s attention, despite a touch sensitive display for its steering wheel controls, which Toyota says is designed to help keep the driver’s eyes on the road.

Seats were reasonably comfortable and interior space is more than sufficient.    Cargo space has been increased to 21.6 cubic feet and the split rear seats fold down.

For the center stack, Toyota has adopted the floating console that Volvo has been using for the past few years. It took me a while to realize that the switch for the heated seats was (inconveniently) placed in the open space below the console.  It also took me a while to get used to the gear shift lever mounted on the center console.

All in all, the 2010 Prius provides better fuel economy and a greatly improved driving experience compared to its predecessors, as well as more interior space and more cargo room.

[Editor's note: this review was completed before the unintended acceleration problem surfaced.  The jury is still out on the root cause of the problem.]