According to reports coming out of Germany, Volkswagen has announced that it will no longer be a part of the Bluetec technology alliance that was supposed to be a technology-sharing consortium to pool resources for the development of clean diesel technologies. For now, Bluetec will be a name shared only between Daimler-Benz and the newly-formed Chrysler LLC.
From polling consumers, it seems "Bluetec" was too closely associated with Mercedes-Benz for VW's comfort. Conversely, "TDI" enjoys a great deal of brand equity among Volkswagen diesel enthusiasts, and they decided to build upon the familiarity and popularity of that designation.
VW is expected to offer a 50-state 2.0-liter turbodiesel for the 2008 model year in the Jetta, upcoming Tiguan compact SUV, and possibly the Rabbit hatchback. The system reportedly meets Tier 2 Bin 5 emissions standards, and does so without the need for a urea-injection system.