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Volkswagen contends that the 2008 version of its Touareg SUV has been nipped, tucked and fortified so thoroughly that it qualifies as the second generation of the model. In fact, the company is so giddy that it refers to the buffed-up Touareg, which has been on sale since June, as “Touareg 2.” VW hasn’t actually added that numeral to the badges on the Touareg itself, but at least that indicates how much the German automaker wants the world to look, once again, at the Touareg as a fresh presence in the marketplace.

Adamance isn’t, however, a substitute for substance. Sure, the Touareg 2 has some obvious changes tweaks—new headlights and taillights, a bolder and shinier grille, bigger side mirrors and an updated interior with new instrumentation and a glowing LCD screen on the sound system—but the more impressive new elements are subtle. The revised Touareg is noticeably quieter on the road, even more ludicrously hypercapable off-road, and promises to get even better in the near future.

VW updated the Touareg’s gasoline-fueled powertrain during the 2007 model year when it replaced the 240-hp 3.2-liter V6 at the bottom of the range with a new 276-hp “FSI” direct fuel injection 3.6-liter V6. And it re-engineered the optional 4.2-liter V8 around the FSI system to swell its output from 310 to 350 hp. Those engines carry forth into 2008 along with the torque-tastic 310-hp 4.9-liter  twin-turbocharged V-10 diesel that stomps its 553 lb.-ft. around the 43 states that allow it. All the engines are backed by six-speed automatic transmissions feeding VW’s impressive “4XMotion” dual-range, all-wheel drive system.

On the tech side, VW has massaged the braking system with new “dry-braking function,” “active rollover protection” and “ABSPlus” systems. Burrowed into the code controlling the electronic stabilization program (ESP) are instructions to lightly apply the brake linings to each of the four discs, ensuring a dry surface for those pads to clamp down on during wet weather or when fording mucky terrain. That’s the dry-braking function. Active rollover protection is essentially an enhancement to the ESP that aids in keeping the shiny side of the Touareg up. ABSPlus is an off-road mode for the ABS that, by locking the brakes for a few moments, allows some softer road or off-road materials to accumulate in front of the tires to create a wedge that adds braking force.

The safety systems have also been modified with the adoption of a new rollover sensor system that analyzes steering angle and turning speed and then, if it senses the Touareg is about to turn turtle, activates the side and side-curtain airbags to reduce the possibility of injury. A new tire-pressure monitoring system also delivers real-time air-pressure readings to the driver more quickly and accurately.

The best part of the Touareg has always been its impregnability—a hardened unibody structure it shares with its brothers the Porsche Cayenne and Audi Q7—and that really hasn’t changed at all. On or off the road, this SUV feels like it was machined out of a solid block of depleted uranium, then fitted with a suspension swiped off the world’s softest-sprung battle tank. VW really shows off the ruggedness of the Touareg 2 in its hefty 5086-pound curb weight—more than 500 pounds heavier than its competition—the Acura MDX.

The all-independent air suspension seems infinitely tuneable to all conditions off-road, and the Touareg 2 rides quietly and comfortably on-road, with nicely weighted steering. The front seats are supremely comfortable, the new dash is attractive—though overwhelmed by buttons and controls—and the whole assembly has the quality we expect  of German engineering.

Of course, this big beast doesn’t have the reflexes of smaller VWs, like the GTI, but a GTI wouldn’t be very good at clearing a rock-strewn stream or scooting up a mountainous dirt trail. The revelatory aspect of driving the V6 and V8 versions of the Touareg 2 back-to-back is how thoroughly adequate the smaller engine is. For most buyers, the V6’s slightly better fuel economy (a sorry EPA-rated 14 mpg in the city and 19 mpg on the highway, versus the V8’s downright lousy 12 and 17) and lower purchase price mean it’s the better Touareg 2 for most buyers. The updated Touareg prices start at $39,320 for the V6 version and scream up to $68,320 for the V10 diesel.

Ultimately, it’s an overstatement for VW to claim that the changes to this machine for 2008 are enough to mark it as Touareg 2. It is still, after all, very much the same vehicle it was when introduced in 2003. But the Touareg 2 is better—about 14 percent better. So let’s call it the Touareg 1.14. VW promises that, in 2009, it will also overhaul the Touareg with a clean-running and fuel-thrifty 3.0-liter turbodiesel V6 for all 50 states. That will be the real Touareg 2.0. —John Pearley Huffman