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I have both a Touareg and a Highlander Hybrid. They both go fine in the snow. Although I've posted a lot about the traction control, and although there is the occasional situation where it might stop you dead as I have described, we had no snow problems last winter at all with the Highlander (and we live at 8500 feet in the San Juan Mountains!). The most important thing, bar none, is tires. We put dedicatd snow tires on the HiHy and it went anywhere. (I used 235 instead of 225 because of the better selection and they just barely fit. Michelin Arctic Alpin.) The Touareg got stuck a couple times on its half-worn Pirelli Scorpion all-terrains.
Touareg V8 lately has been up to 17+ mpg. HiHy 25+ mpg.
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