By Drew Johnson
Monday, May 19th, 2008 @ 1:29 pm

Although it was believed that Volkswagen would sell a diesel-powered version of its Tiguan small SUV in the U.S., it looks as though those plans are on hold, at least for the time being. Strong European demand has the Tiguan factory running at full capacity and VW execs are worried that a diesel powerplant would inflate the SUV’s price beyond reasonable for the segment.
According to Winding Road, the Tiguan is proving so popular in Europe — where the SUV has now been on sale for several months — that customers are waiting months to take delivery. VW has already doubled Tiguan production, leaving virtually no capacity to carry a new U.S.-specific model.

In addition to capacity concerns, VW execs are also worried that the extra equipment necessary to make a TDI Tiguan 50-state legal would push its price tag well north of what customers are willing to pay. A base model Tiguan TDI would likely list from about $27,000, with prices topping off well into the $30,000s.

Although a diesel-powered Tiguan would improve fuel economy by 30 percent, most customers would likely balk at the high price of diesel, which would off-set any fuel savings.

If VW does decide to give a U.S.-spec Tiguan TDI the green light, it won’t hit U.S. showrooms until at least sometime in the next decade.

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