Okay, so why does the Volkswagen Touareg suddenly have a “2″ at the end of its name? Is this a smaller Touareg, or a companion model? You’d be forgiven for assuming that the name “Touareg 2″ referred to VW’s upcoming compact sport-ute, but nope, that rig goes by the name of Tiguan. No, “Touareg 2″ is what VW is calling the redesigned Touareg that’s debuting for 2008.

A new Touareg? Yes, I know it looks at a glance to be just like last year’s model, but the Touareg has undergone quite a bit of revision and updating.

The redesign is one of the most subtle ever. The front end has the same tall, sleek good looks as before, but the grille and headlights have been substantially revised to match the rest of VW’s lineup. The larger, deep-chinned grille is chrome on V6-powered Touaregs and more subtle matte chrome on the V8 and V10 models. Chrome eyebrows over the rounded off headlamps offer additional distinction. The long-nosed profile and muscular side contouring haven’t changed, but at the rear there’s a new roof-edge spoiler and a bit of tweaking to the taillights. 19-inch wheels are standard on uplevel models. The Touareg is a bulky-looking vehicle, and still tends to give the impression that it’s much larger than it is.

Twist the key, and the HID headlamps come imposingly to life, a dance of light that’s especially impressive at night. Day or night, the interior drips with Volkswagen’s special brand of high-tech working-class luxury. Amenities include heated seats front and rear, a backup camera with a parking guide that overlays the direction the Touareg’s going to go in the display, automatic four-zone climate control, and a sunroof. Sirius satellite radio is standard equipment, and there’s a specially tuned 620-watt Dynaudio sound system available as an upgrade. The Touareg’s dash hasn’t changed much with the redesign and continues to play the command center vibe to the hilt, with acres of buttons and controls that are sometimes less intuitive than they ought to be. Wood trim on the console adds a warm touch. The standard power tailgate works quickly, though the 31 cubic-foot cargo area that it reveals could use bag hooks of some kind. The big Volkswagen’s cabin is a very nice place to be, and it’s one of the places the Touareg’s rather high bottom line shows.

The other big justification for the Touareg’s base price is under the hood. A choice of V6 V8 or V10 diesel power is available, and all three are world class. A new FSI fuel management system improves power and efficiency across the board. Touareg buyers get a choice of a 3.8 liter V6 with 280 horsepower, a 4.2 liter V8 making 350, or the 5.0 V10 TDI that churns out 310 horses and 553 pound-feet of torque. Driving the high-horsepower middle child, the V8, is a pleasant and relaxing experience. Docile at low speeds, the Touareg’s V8 is quick to roar, and offers great power throughout the range. On the freeway it’s relaxed to the point of calmness, yet there’s enough power for the Touareg to handle a good-sized trailer. The six-speed automatic transmission is geared nicely for high-speed freeway cruising, and the Touareg masks its hefty 5300-pound curb weight well under acceleration. Do not ask about fuel economy, for it will only make you cry. At least Touareg measures decent off-road skills among its achievements, to make up for its fuelish nature.

The Touareg’s all-wheel drive gets added security from standard Electronic Stabilization Program (ESP) stability control. The ESP includes rollover mitigation and understeer protection, and as a result sloppy roads and ice don’t seem to concern the Touareg at all.

A double wishbone suspension is used up front, with an independent four-link setup at the rear. It’s not exactly sporty, but the Touareg is very responsive and confidence-inspiring. The on-road ride is stiffer than most, but not particularly waddly. Of course, there are so many SUVs on the road these days that there’s no point in comparing it to a car. The Touareg manages its high center of gravity gracefully, offers excellent steering feedback through the wheel, and brakes well enough that it’s easy to forget that it weighs two and a half tons. The brakes include a dry-braking system that skims water off of the brake discs when it’s raining, as well as offering the capability to dislodge small bits of gravel and other debris that might get wedged in between brake pad and rotor when off-roading.

You can have it all, but you can’t have it all for nothing, of course. The revised 2008 Touareg is a high-class, high-capability vehicle. It’s also undeniably a high-ticket item as well, with pricing starting at $39,320 for the V6 model and $48,320 for a V8 like the one I drove. The V10 TDI comes in at a startling $68,320, which is considerable even taking into account that vehicle’s indstrial-grade towing and hauling capability.

Specifications:

All specs are for the 2008 Volkswagen Touareg

Length: 187.2 in.

Width: 75.9 in.

Height: 68.0 in.

Wheelbase: 112.4 in.

Curb weight: 5300 lb.

Towing capacity: 7716 lb.

Cargo space: 31 cu.ft. (seats up); 71 cu.ft. (seats folded)

Base price: $48,320

Engine: 4.2 liter DOHC V8

Drivetrain: six-speed automatic transmission, four-wheel drive

Horsepower: 350 @ 6700

Torque: 324 @ 3500

Fuel capacity: 26.4 gal.

Est. mileage: 12/17