The car formerly known as the Golf made its fifth-generation debut in mid-2006 as the Rabbit. It features a 5-cylinder engine and choice of 2- and 4-door hatchback body styles. For 2007, the Rabbit adds three new exterior colors—red, white, and grey—but is otherwise unchanged.

Volkswagen first launched the Rabbit in the United States in the mid-1970s, and their timing couldn't have been better: rocked by oil shortages, the country that fell in love with the Beetle eagerly embraced the small, fuel-efficient, front-drive Rabbit. When the second generation appeared, Volkswagen reverted to the car's European name, Golf. Golf sales boomed in Europe but waned in America. VW was in the midst of an effort to move its brand image up-market, but most American buyers regarded hatchbacks as entry-level cars. The Jetta sedan flourished while Golf sales skidded.