Today, during the U.S. debut of the 2011 Volkswagen Touareg at the New York auto show, VW of North America CEO Stefan Jacoby confirmed that the upcoming New Mid-Size Sedan (NMS) will have a diesel engine option for North America. The NMS, which is the working title for the Passat replacement, most likely will be powered by the current corporate 140-hp, 2.0-liter TDI turbo-diesel. We are crossing our fingers that maybe, just maybe, VW will give us the uprated Euro version which puts out 170 hp.

While little else is known about the NMS, we can tell you that it will be built at VW’s new plant in Chattanooga, Tennessee, alongside the next Jetta, which was previewed by the NCC concept. VW previously handed out the above NMS sketch which shows that it will wear the current VW family face, as seen on the latest Golf and Touareg.

Look for the NMS to debut sometime later this year as a 2011 model; by then we should know its official name. We hope.

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