VW Passat 1.8T vs Toyota Camry 2.5

Toyota recently launched their 2012 edition Camry with the 2.0 litre and 2.5 litre engine models. this new model promises more refinement, better handling and better space. The new Camry is without a doubt a good car and Toyota has been improving this model for decades to bring it close to Lexus level.
The biggest threat to Toyota is now the VW Passat 1.8T rather than the traditional Honda Accord as the current Honda Accord model is getting old and is due to be replaced in 2013. Why is the VW Passat 1.8T a serious competitor to the Camry? The reason is simple. The cars are of similar size, similar price but both are engineered differently hence the interesting comparison.

Here is a direct head to head comparison:
Engine:
Toyota Camry 2.5: 181ps and 231Nm.
VW Passat 1.8T: 160ps and 250Nm

Transmission:
Toyota Camry 2.5: 6 speed automatic
VW Passat 1.8T: 7 Speed DSG

Vehicle Weight:
Toyota Camry 2.5: 1480kg
VW Passat 1.8T: 1517kg

Acceleration 0-100km/h:
Toyota Camry 2.5: 8.7 secs
VW Passat 1.8T: 8.5 secs

Fuel consumption:
Toyota Camry 2.5: 8.5 litres/100km (estimated)
VW Passat 1.8T: 7.0 litres/100km

With the statistics listed above it is very clear that engine downsizing works wonders for fuel economy and performance. The VW Passat is easily 20ps down on the Camry but the higher torque figures and better transmission efficiency pays dividends for the Passat despite the slightly heavier body weight.
VW has utilized the engine downsizing and ultra efficient DSG transmission to great effect to make the Passat a great contender for this segment of the market. Positioned as a mid size sedan, VW was able to bring the best of both worlds with good handling, solid highway stability, good fuel economy and ride comfort at a price cheaper than the new Camry 2.5.
In Malaysia VW offers 5 years warranty while Toyota offers 3 years warranty. The competition in this segment of the market just got hotter and Toyota has something to seriously worry about. The competition is no longer just with Honda Accord, Hyundai Sonata and the Nissan Teana. VW has joined the party with a strong contender and having a European badge with a similar price it may just swing many buyers over. For similar money, would you buy Japanese, Korean or German?