The fifth generation Jetta debuted at the 2005 Los Angeles Auto Show in January.
Built in Puebla, Mexico and exported to the rest of North America and Europe where the A5 is again called the Jetta, it is larger than the fourth generation with more upscale styling and greater interior room, now equal to the former generation Passat. One major change is the introduction of the first independent rear suspension in a Jetta. In North America, the base engine is a 2.5 L (2480 cc) I5 producing 110 kW (150 hp DIN) and 168 ft·lbf (228 N·m) of torque. This new 20-valve DOHC engine is based on the Lamborghini Gallardo's V10 with technology from the Bugatti Veyron, sharing a similar head design and the same bore and stroke dimensions (82.5 x 92.8 mm). Replacing the venerable 1.8 T is a turbocharged 2.0 L 16-valve I4 rated at 147 kW (200 hp DIN) and featuring FSI. There is also the PD diesel engine, a 1.9 L TDI unit producing 74 kW (100 hp DIN) and 250 N·m (177 ft·lbf) of torque.
A DSG transmission, stability control, and electro-mechanical steering are also new innovations.
In North America, the A5 Jetta went on sale in March 2005, as a 2005 1/2 model, overlapping the final model year of the A4 Jetta. A GLI version was released as a 2006 model in North America in the late summer of 2005. The new Jetta was designed by Walter de'Silva. 2005 sales of the New Jetta were disappointing in the US, with the exception of the TDI diesel version, where rapidly rising fuel prices have resulted in heavy demand for vehicles equipped with this engine. While critics embraced the overall vehicle, many thought that it was too high-priced for the highly competitive compact car market. In 2006, Car and Driver named the new GLI an Everyday Hero for an enthusiast who wants sports car handling without losing too much practicality. A station wagon version of the A5 Jetta is promised for 2007.
Volkswagen announced the Jetta in Europe in late May 2005. The model range returns to using the Jetta name on the continent, rather than Bora or Vento. In other parts of the world, this model does retain both names, usually in cases where a previous generation is still sold. For example, in Mexico, the A4 is still sold as the Jetta, while the A5 is the Bora. In China, the A2 is still sold as the Jetta, while the A5 is sold as the Sagitar together with the A4 Bora.
