By Matthew Phenix

Volkswagen has at last finished working on its 60 mpg Jetta BlueTDI diesel, and not only does it look great, but it's coming to America later this year.

The company announced at this week's International Vienna Motor Symposium in Austria that the new diesel Jetta uses an updated version of the 2.0-liter four-cylinder turbocharged engine with common-rail direct injection that made its debut last fall in the European-market Tiguan.

Dubbed BlueTDI, the engine produces 138 horsepower and 236 pound-feet of torque. It's good for 60 mpg on the highway, a 12-percent improvement over the 2006 Jetta TDI. And thanks to some emissions tweaks - an engine-management system that mitigates toxic nitrogen oxide production by limiting combustion temperatures, and a maintenance-free trap that converts the remaining NOx to nitrogen and water - the Jetta BlueTDI meets the EPA's Bin 5/LEV 2 emissions standards. That means it's 50-state legal without the need for urea injection. Even Californians get one.

The Jetta BlueTDI arrives in Volkswagen showrooms late this summer. Look for a price about $2,000 higher than its gasoline counterpart, which starts at $16,990.

Photos courtesy of Volkswagen. There's more after the jump.