Agreed with Patrick that the goofy little Matrix might be the top mileage
AWD out there at the moment.  A slightly more goofy but perhaps larger and
better choice would be the Suzuiki Aerio wagon with AWD which reports
29mpg highway.

As for the VW TDIs, both the Jetta and the Passat version lead their class
in MPG, but VW Vortex has this to say about the combo. of TDI and 4Motion:

"Its safe to say that we were rather impressed with the new Passat TDI,
and in fact we really have only one major complaint  we very much wish
VWoA had seen fit to offer 4MOTION with the TDI driveline. Such a
combination might very well have made this car a world-beater and put it
truly in a class of its own here in North America."

Pity, then, that such vehicles haven't gained a larger market share over
here yet.  VW made only 500 or so Touregs with a big TDI motor but
cancelled them due to lack of demand, IIRC.

Still, the used market offers better AWD mpg options... Older Honda CR-Vs
with the 2.0 instead of the current 2.4 might get 30+ highway.  88-91
Civic Wagons definitely did, as did the truly ugly 85-87 versions of the
same car, though many of those in the NE have turned into rustdust
already.  And there's always the trusty Subarau Justy.  Kathleen had one
of those scary 3-cylinder things that did okay by her.  Sometimes going up
the Hills on I-64 in VA we had to get out and push it though... not
exactly powerful.

-Jim B.

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