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Audi AG expects to sell its diesel-powered Q7 cross/utility vehicle in the U.S. by 2008.

This move represents an aggressive powertrain-development push for Audi, which already has committed to a Q7 hybrid-electric vehicle launch in the same timeframe.

Key to rollout is development of an exhaust after-treatment system, says Wolfgang Hatz, executive director-powertrain development.

Audi engineers are about two years away from nailing an execution of after-treatment technology that, in concert with low-sulfur diesel fuels, will enable the European Q7's 3.0L V-6 turbodiesel to meet stringent U.S. federal emissions standards and, more importantly, those in California.

“In the end, it has to be 50 states,” he adds, noting California accounts for 40% of Audi's U.S. sales, the largest share of any market outside of Europe.

The turbodiesel belongs to a new family of V-engines. It generates 230 hp and 369 lb.-ft. (500 Nm) of torque.

The CUV, which shares a platform with the Volkswagen Touareg and Porsche Cayenne, is expected in U.S. showrooms by June, a spokesman for Audi of America Inc. says. To date, Audi dealers have taken about 1,000 orders, he adds.