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I believe it's a derivation of the same engine as the current (outgoing) A4 B7 170PS TDi (which I have), fitted with Common Rail injection instead of Pumpe Duse, so I sincerely hope more refined and economical..... (see VW/Audi fora for lots of discussion on this).
Early reports of the lower powered 140PS variant fitted in the VW Tiguan imply it is more refined, which after driving the Honda 2.2 I'd suggest it needs to be.
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