Volkswagen’s first built-in-US car since the 1970s Rabbit (Golf) is confusingly named Passat despite being four inches (10cm) longer and restyled inside and out compared with the European version launched at the end of last year.

That won’t worry Americans who get a bigger replacement for the outgoing ‘Euro’ Passat at a starting price almost US$8,000 cheaper. Final pricing will be announced in the spring, but the Passat will start at around $20,000 when it arrives in dealer showrooms later this year. It will come with premium standard features that include automatic climate control and Bluetooth connectivity.

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VW US is claiming best-in-class rear legroom for the new car that will be built in Chattanooga, Tennessee, at what is claimed to be the world’s newest, most advanced and environmentally responsible auto assembly plant.

A TDI version – the only ‘clean diesel’ option in the segment – is expected to deliver 43 miles per gallon on the highway, with a range of approximately 800 miles.

Volkswagen’s new Chattanooga plant that will produce the Passat is part of a US$4bn investment by the company in the US market.

US buyers will be offered the two-litre TDI, an I5 2.5-litre petrol engine and a  3.6-litre V6.

The 2.5L five cylinder engine (170 hp/177 lb.-ft.), which is being offered in the Passat for the first time, will be mated to a standard 5 speed manual transmission. As an alternative, the 2.5 multi port injection engine may be paired with a 6-speed automatic. Five-speed manual transmission is standard; the I5 has a six-speed auto option, the TDI auto is a six-speed DSG and that is also standard with the petrol V6.

The Passat will be offered in three trim levels, S, SE and SEL, with 16 equipment levels.

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