Volkswagen refreshed its Touareg SUV for the 2008 model year, calling it the “Touareg 2,” although we have found the sequel to be nearly identical to the original. That shouldn’t bother Touareg buyers, claimed to be the most loyal among all the company’s customers according to VW representatives, but it will let a few competitors get the jump on them. Volkswagen’s most expensive model will look largely unchanged until the full redesign comes to market sometime around 2010.

Granted, the Touareg 2 does have a few new visual cues, including new headlights and smoked rear lenses. But it’s difficult to see where the changes have been made unless you’re a Touareg-obsessed enthusiast. Modifications come in powertrains, however, which is something we always appreciate. The gasoline engines now feature FSI technology most commonly found in sister company Audi’s products. The VR-6 base model gets a 4-horsepower boost to 280, and the 4.2-liter V-8 model is rated at a similar 350 horsepower. The V-10 diesel engine remains unchanged, pulling at an otherworldly 553 pound-feet of torque.

The fountain of youth for this not-very-updated Touareg, in our view, will be a new diesel engine that will be available in the latter half of 2008. The company’s new 3.0-liter V-6 TDI is set to lead VW’s diesel-focused charge in our market and should eventually find a home in other cars in the lineup, such as the Passat. The new oil burner, which will be completely fifty-state compliant with its ultra-low-sulfur diesel fuel and urea-based reductant (see also: Mercedes-Benz’s Bluetec system), will replace the stump-pulling V-10 TDI in our market, but there might be a few months where both are on sale next year. Even though the new diesel will lose four cylinders, don’t expect it to lose any ground when it comes to pulling large stumps: the V-6 TDI will generate around 370 pound-feet of torque and something around 225 horsepower when it goes on sale later next year. Reports from insiders say fuel economy should average out somewhere in the 30-mile-per-gallon range, which would be a big jump from the V-10 TDI’s current 17 city/22 highway.

Driving the Touareg both on- and off-pavement leaves us wholeheartedly surprised. Whereas the vehicle appears to be a great SUV for on-road travel, it’s not. When you’re off-road and you think the Touareg would be out of place, it isn’t. This conundrum isn’t bad for back country escapes, as we found in hours of medium to heavy trail and rock climbing in Barcelona’s Les Comes park. Set in low range, the Touareg will creep, crawl, and scale objects you never thought possible without a Jeep Wrangler and a head of steam. In contrast, on-road driving back to the city leaves the Touareg feeling uncharacteristically coarse. On and off the throttle, there’s a lot of driveline friction transmitted to the driver through the steering wheel and audibly in the cabin. Where the smaller Volkswagens urge the driver to go faster and stronger, the Touareg disappoints. Current Volkswagen management knows this is an issue for the Touareg and we imagine the next iteration of the car will be more on-road capable and in keeping with the rest of the company’s lineup. For now, we look forward to driving the new V-6 diesel in the Touareg when it becomes available.