The fifth generation debuted at the Los Angeles Auto Show on January 5, 2005. It was only the second Volkswagen product to make its world debut at a U.S. Auto show (the other being the New Beetle). Furthermore, the Mk5 saloon/sedan went on sale in the USA prior to any other country, reflecting the importance of the car in that market for Volkswagen. US$800 million was spent upgrading the factory in Puebla for its production. This included a US$290 million new engine production line for the 5 cylinder power plant, a US$50 million investment in the press shop, as well as a US$200 million purchase of 460 robots, which increased automation by 80%.
Although produced in the largest volumes in Mexico, final assembly of the car also takes place in China and South Africa for those respective markets. Like initial production of the second generation in China, the Asian and African plants build the car from a complete knock down (CKD) kit shipped from the factory in Puebla. Local assembly in Kaluga, Russia started in early 2008. Production also began in India in 2008. Currently, the Skoda factory in Aurangabad is used for final assembly. As with the previously mentioned assembly plants, CKD kits from Volkswagen de México will be used.
The fifth generation car has the widest variety of names of any generation. In most countries it is referred to as the Jetta. Exceptions to this include "Bora" in Mexico and Colombia, "Vento" in Argentina and Chile, and "Sagitar" in China The Mk5 is 170 millimetres longer, 30 millimetres wider, and has a 70 millimetres longer wheelbase than the previous generation. Interior room has increased from 2.46 cubic metres to 2.58 cubic metres. In particular, rear legroom was increased by 65 millimetres over the fourth generation. Luggage compartment volume is up to 453 litres. One major change is the introduction of the first multi-link independent rear suspension in a Jetta. The design of the rear suspension is nearly identical to the one found in the Ford Focus. Volkswagen reportedly hired engineers from Ford who designed the suspension on the Focus. Styling reflects a new direction for the Volkswagen brand with a new chrome front grille, first seen on the Golf Mk5 R32, which has spread to other models. Some critics appreciated the new styling, whilst others dismissed it as a Toyota Corolla clone.
The fifth generation has received generally positive reviews, nevertheless, some critics have complained that the car lost some of its distinctive European character with the redesign. Most reviewers found the ride to be firm and well controlled, but not always as forgiving as the previous generation. Handling was a strong point, with quick and precise steering and minimal body roll. Fit and finish received excellent marks, with reviewers noting the car felt very upscale. The front seats were firm but well liked, and the rear seat was roomy, in contrast to the cramped quarters in the fourth generation. Controls and displays were generally good. Reviewers were particularly impressed with the "Sportline" models (known as the GLI in North America), equipped with sport seats, a firmer suspension lowered by 15 millimetres and low profile tyres. Critics praised the excellent handling that was an improvement over the already good performance on the standard model. Additionally, the 2.0 Turbo FSI engine also won commendation for its high power figures, smooth operation, and low fuel consumption. Along with its hatchback brethren, the fifth generation ranks among the top cars on the market in independent reviews of resale value.
Although improved over the fourth generation, the Mark 5 still takes over 42 hours to assemble at the factory in Mexico. Part of this disparity is blamed on the switch to the more complex independent rear suspension. Volkswagen has publicly stated its discontent over the excessive assembly time and pledged to streamline manufacturing in the next generation of A platform cars. In the interim, Volkswagen de México is making a concerted effort to further increase productivity at the plant by consulting outside experts from Toyota and other Japanese companies. By implementing many lean manufacturing principles and techniques, a goal has been set to increase productivity levels at the factory by 30% or more in the coming years.