(Fri 13 Jun 08)

Audi has introduced a new engine emitting just 134g/km of CO2 to the Audi A4 saloon and Avant ranges.

It's a development of the 141bhp 2.0 TDI turbo diesel introduced earlier this year when the A4 saloon was launched. In its new form it produces 118bhp, which isn't a lot for a car of this size but still gives reasonable performance of 127mph flat out and 0-62mph in 10.7 seconds. More significantly, it manages 55.4mpg on the combined fuel economy cycle.

The headline figure, though, is 134g/km. This puts the A4 into the current VED Band C, which means annual tax of £120, falling to £110 when the new VED structure comes into force next year. Audi also points out that the benefit-in-kind tax liability is just £1582.20 per annum (or £131.85 monthly) for a company car user in the 40% tax bracket.

The new engine is available in A4 saloon and Avants in standard, Sport and S line specifications. Prices range from £24,625 to £29,700.

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