An all-new version of Volkswagen's compact Golf hatchback and its sporty GTI derivative will debut in the second quarter of 2006, likely as a 2007 model, with many of the changes otherwise found on the new Jetta with which they share platforms and components. The current models remain available for a shortened run, with the base GL two-door and four-door GL TDI trim levels being deleted for 2006. Available in two- and four-door versions, the Golf comes with a standard 115-horsepower, 2.0-liter four-cylinder engine that's mated to either a five-speed manual as standard or a four-speed automatic transmission. The GLS TDI sedan wrings extraordinary fuel economy out of its 100-horsepower, 1.9-liter turbodiesel engine, while a peppy 180-horsepower, 1.8-liter four-cylinder version powers the GTI. A sporty suspension delivers true European-style handling on a budget, with anti-lock brakes and front-side airbags standard. Options include VW's Electronic Stability Program, heated seats and windshield washers, leather seats, and rain-sensing wipers. For 2006, VW's Electronic Stability Program becomes standard on the GTI, along with 17-inch alloy wheels and tires, and heated seats and windshield washers.

Introduced at mid-year 2005, an all-new Jetta is larger than before with more refined styling inside and out, highlighted by a new and bolder front-end treatment. The car's interior is now roomier, and the vehicle's trunk is truly voluminous. Increased structural rigidity and a new electro-mechanical power steering system translate into more precise handling characteristics, and an all-new 2.5-liter five-cylinder engine under the hood means added power, which is now up to 150 horsepower (compared to the previous version's 115 horsepower.). As before, 1.9-liter turbodiesel models generate 100 horses and offer top fuel economy. A five-speed manual transmission is standard, while a new six-speed automatic gearbox is newly available. Newly optional on the base version and standard on the Jetta GLI for 2006 is a turbocharged, 2.0-liter engine that generates 200 horsepower, and offers the choice of either a six-speed manual or six-speed DSG automatic with Tiptronic manual-shift capability. Four-wheel disc anti-lock brakes and Anti-Slip Regulation with Electronic Differential Lock are now standard for better stability, along with front-side and side-curtain airbags for added safety. For 2006, 16-inch alloy wheels are standard on the base 2.0T and TDI models, with 17-inch rims included on the GLI and optional on the 2.0T, and 18-inchers optional on the GLI. Available features include upgraded anti-lock brakes with Electronic Brakeforce Distribution and Brake Assist, VW's Electronic Stabilization Program, automatic dual-zone air conditioning, a premium audio system with MP3 capability and a CD changer, power heated seats, a navigation system, and rain-sensing wipers with heated washers.