I test drove a 2013 Touareg TDI (twice) this past week - I liked it - In fact, I was impressed.

We have a 2011 X5 5.0 Sports Package Adaptive Drive, which I am very enamored with (I have several posts here describing my driving impressions in detail when I was in the market). At that time, I also drove the 35D and the 35i several times (as well as an X5M once) before I bought the 5.0. I have no regrets whatsoever with the awesome X5 5.0 - it suits my wife and I very well!

I drove the TDI because I am considering an SUV (preferably diesel) for a work vehicle. I am not considering the X5 because I don't want to worry about the perception a BMW would give to client's. I just don't think the VW would produce the same ill affect with clients. It is pretty neutral - what one might call "a sleeper", because not many (IMO) will realize that it is a very nice vehicle.

My test drive of the TDI Touareg
Took a fairly lengthy drive (with a dealer) up on top of Horsetooth Reservoir (Fort Collins, CO area) - lots of twisties and hills (plus awesome views!). The Treg was impressive - I couldn't get over how well the motor pulled and how well mated the 8 speed was to the power plant. I just kept stepping on it and stepping on it over and over again - beginning at various speeds. And, I recently drove a 35D the week before - I am fairly confident that the Touareg has a "stronger" overall feel to the motor than the 35D (seat dyno only). I really "pushed" the Touareg up and around mountain canyons and onto a few flat 0 - 80MPH sprints. I don't know if it was the 8 speed vs the 6 speed in the X5 or what, but the performance of the Touareg is more impressive (IMHO) than the 35Ds I have driven.

Cornering was satisfying - certainly nothing like our 5.0 Sports Package with Adaptive Drive, but it certainly had satisfying cornering - I felt the German character (tight enjoyable cornering and ride) all of the time. I would still say that a "non Adaptive Drive" X5 corners better than the Touareg, but not by a great amount. The Treg gave me the impression of being a little smaller than the E70 overall too (because it, in fact, is). Perhaps most noticing was its height - about 2.5 inches shorter than the X5.

Here are the differences in size:

E70
Length = 191.1"
Width = 76.1"
Height = 69.9"
Weight = 5,192
Inline 6 cylinder
HP = 265
Torque = 425
19.6 lbs per HP
6 Speed Transmission

TOUAREG
Length = 188.8"
Width = 76.4"
Height = 67.3" (IT DOES SEEM 2.5" SHORTER)
Weight = 4,974 lbs
V6 Diesel
HP = 240
Torque = 406
20.7 lbs per HP
8 Speed Transmission

I think the Touareg might be a bit of a sleeper. I haven't priced out a 35D lately but you can get the Touareg Lux package (which sits in between the Sport and the Executive package) for about $50,000. I don't think this is too bad of a price.

I wonder how comfortable the seats are if one were to drive it on a lengthy trip?

The Lux package has 19" wheels - not sure which size. The SPort package has 18s and the Exec package has 20s.

I still don't know if I will buy one for a work vehicle or not . . .

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2011 X5 Xdrive50i Sport Package AD
2013 Touareg TDI
2012 Ford F250 Super Duty Powerstroke
1997 BMW M3 Sedan
1995 BMW 540i 6 Speed

Retired:
2008 Acura MDX (good car - yawn)
2002 M5 (I will miss this car forever)
1999 M3 (fun car X2)
1992 325IS DINAN (fun car)
1987 325IS (fun car)
1986 325IS (fun car)