their continuously-variable transmissions, the Touareg uses a full eight-speed unit. Gear changes are nearly imperceptible as the car flows through its eight ratios.

When it comes to hybrids, it's all about how that power gets to the transmission. In this case, Volkswagen dumped the 3.6L gas and 3.0L turbo diesel (as well as the previously available 5.0L V10 turbo diesel and 4.2L V8 gas) engines in favor of the Audi-based 3.0L direct-injected and supercharged V6.

Combining this 333-horsepower unit with a 47-horsepower electric motor, the hybrid can generate an impressive 380 horses. Taking a lesson from "hypermilers," the Touareg can shut off the gas engine whenever it's not needed.

This start-stop ability is actually a feature Volkswagen introduced in the Rabbit back in the early 1980s. In the Touareg, however, this ability isn't limited only to traffic lights and can be armed at highway speeds. Coasting down a long hill with your foot barely on the accelerator, there's no real need for power. So, the engine shuts down. In many cases, the Touareg uses its inertial energy to recharge the batteries.

When the need for power returns, electric power is immediately on tap, and the engine is coaxed back to life for full power a second later. It takes no longer than a downshift from a traditional transmission for this whole process to happen. Unless you're watching the dashboard, you probably wouldn't even know it had occurred.

Yes, there's about 380 horsepower on tap. Yet in regular driving, the Touareg Hybrid impressively returns figures in the low 20-m.p.g. range. Fully electric driving was seen above 40 m.p.h., albeit only briefly. Under