That's probably just for the European engine. The US spec engine for 2011 is still showing 225 hp.
I thought this new engine was only available in the Euro Q7.
How does 32 mpg compare to the current engine? A loss of 20 horsepower isn't that much since the torque is so important in a heavy car and if it really improves mpg it could be worth it.
This new engine is down 74 foot pounds. 332 vs 406.
Audi shows 17 city, 25 highway, 20 combined for the US TDI, but the European milage figures are computed in a different way so you don't know if you're comparing apples to apples.
This engine also looks to be about a half second slower to 60. The attached Audi press release mentioned a very complex cooling system with separate water jackets for the block and heads and reduced spring tension rings for lower friction to increase mpg. I don't like the idea of reduced spring tension on diesel rings at all; maybe if they had a longevity reason, but not just to eek out a percentage of a mpg.
After reading this I'm happy they didn't drop this one into the US versions.