TDI: U.S. Market Success. March 2015

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1 : U.S. Market Success March 2015

2 Our corporate objective is to drive toward a CO2 neutral/sustainable mobility Volkswagen powertrain strategy CO 2 -neutral Electricity Conventional Electricity Fossil Fuels CO 2 -neutral fuels (liquid, gaseous) Fuel Cell Battery Electric Plug-In Hybrid Hybrid Combustion Engine CO 2 -Neutral and Sustainable Mobility 2

3 VW is a leader in clean diesel technology Turbocharged Direct Injection Diesel Gen 1 EA189 Market introduction of our 50 state compliant clean diesel engine Gen 2 EA189 SCR technology, balancing shafts, improved turbo Gen 3 EA288 Low pressure EGR, VVT, more powerful, greater fuel efficient, 40% low emissions 3

4 Diesel is an important differentiator for the VW Group Turbocharged Direct Injection Diesel Competitors Clean Diesel volume Cars and SUVs % Volkswagen Group Clean Diesel Sales Volume 111,285 99,121 98,500 76, ~ 79 % 70% VW Group 43,869 58, VW Group US Diesel market share PC ~ 70 % Strong growth since introduction Source for competitor sales: Polk 4

5 VW Diesel Product Offerings Turbocharged Direct Injection Diesel Golf Jetta Sportwagen Passat Beetle Beetle Cabrio Touareg Range: MPG Hwy: Horsepower: 225 Torque: 406 5

6 CO2 g/mile The Advantage Turbocharged Direct Injection Diesel Highway Fuel Economy (mpg) Torque (lb-ft) Lower CO2 Emissions Higher Fuel Economy Better Drivability -9% +28% +26% MY15 Passat Gasoline MY15 Passat 0 MY15 Passat Gasoline MY15 Passat 0 MY15 Passat Gasoline MY15 Passat 6

7 21% of Volkswagen sales are diesel Turbocharged Direct Injection Diesel Installation Rates by Model 100.0% 80.0% 76.0% 60.0% 40.0% 20.0% 39.0% 30.0% 52.0% 0.0% 16.0% Golf Jetta Jetta Sportwagen Passat 11.0% Beetle (incl. Conv.) Touareg Source: CY2012 YTD sales data; Beetle and Beetle Convertible sales March

8 Consumer Reports testing shows real world MPG advantage for s Turbocharged Direct Injection Diesel MPG (comb city/hwy) Difference 4 MPG Difference between EPA test values and Consumer Reports real world test figures Passat 2010 Competitor FusionF 2009 Competitor MalibuM 2011 Competitor AccordA 2011 Competitor Optima O Can you name a fun-to-drive sedan with a manual transmission that can transport five adults and their luggage comfortably while sipping fuel at the rate of 50 mpg? The answer is the Volkswagen Passat a German antonym for "range anxiety. - Michael Harley, AutoBlog 8

9 Diesel owners achieve better fuel economy than window sticker Turbocharged Direct Injection Diesel Gasoline Above line: Real world fuel economy better than EPA Comparison between user reported fuel economy and EPA test figures drivers report better fuel economy than EPA window sticker Below line: Real world fuel economy worse than EPA Hybrid Diesel Majority of data points are above line Source: Fueleconomy.gov 9

10 VW s limited production XL1 shows a glimpse of VWs future technology innovations Turbocharged Direct Injection Diesel + PHEV Zero emissions mode, 100% emotion, pure efficiency: electric mobility XL1 The most efficient car of the world: 261 miles per gallon Powertrain: 47-hp, two-cylinder 800cc engine with a compact 27-hp electric motor sandwiched between it and a seven-speed DSG automated transmission With its plug-in hybrid powertrain, this two-seater can cover up to 31 miles in all-electric mode with zero local emissions Acceleration 60 miles per hour in 12.5 seconds High-tech manufacturing: ultra-light weight carbon-fiber composite body: 506 lbs. Curb weight: 1,953 lbs. 10

11 Summary Turbocharged Direct Injection Diesel Improved fuel efficiency without sacrificing performance Lower CO2 emissions, supporting environment and GHG compliance Real-world fuel economy exceeds EPA figures 11

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