From 1998 until 2003, minibuses like the Transporter, Caravelle, and Multivan had the 2.5-liter Volkswagen AXG 2.5 TDI diesel engine installed in the rear of the T4. A variable geometry turbine set this family’s most potent diesel engine apart.

AAB, AJT, ACV, AXG, BAC, BPE, AXD, AXE, AJS, and AYH are also included in the EA153 series.
Specifications
| Production years | 1998-2003 |
| Displacement, cc | 2460 |
| Fuel system | direct injection |
| Power output, hp | 151 |
| Torque output, Nm | 295 |
| Cylinder block | cast iron R5 |
| Block head | aluminum 10v |
| Cylinder bore, mm | 81 |
| Piston stroke, mm | 95.5 |
| Compression ratio | 19.5 |
| Features | SOHC, intercooler |
| Hydraulic lifters | yes |
| Timing drive | belt |
| Phase regulator | no |
| Turbocharging | VGT |
| Recommended engine oil | 5W-40 |
| Engine oil capacity, liter | 5.5 |
| Fuel type | diesel |
| Euro standards | EURO 2/3 |
| Fuel consumption, L/100 km (for VW Multivan 2000) — city — highway — combined |
10.6 6.9 8.1 |
| Engine lifespan, km | ~400 000 |
The engine was installed on:
- Volkswagen Transporter T4 (7D) in 1998 – 2003.
Disadvantages of the VW AXG engine
Owners typically lament issues with high pressure fuel pumps or injectors on the forums;
Failures of the mass air flow sensor and the constantly knocking vacuum pump rank second in frequency;
Keep an eye on the cooling system because the aluminum cylinder head fears overheating;
Belt and roller replacement is required every 100,000 kilometers;
Oil is frequently driven by the variable geometry turbine after 200,000 kilometers.
