FAW-Volkswagen Automotive Co., Ltd.

Joachim Wedler 1 st Vice President of FAW-Volkswagen Automotive Co., Ltd. FAW-Volkswagen Automotive Co., Ltd. Analyst/Investor Conference Shanghai, 24 May 2006 1

Overview 1. Changchun as the Home of FAW-Volkswagen 2. History of FAW-Volkswagen 3. Key Data FAW-Volkswagen 4. Olympic Program FAW-Volkswagen 5. Audi the Premium Brand in China 2

Changchun as the Home of FAW-Volkswagen Changchun Changchun is the capital city of Jilin Province with 6 districts and 4 counties. The Palace for China s last Emperor is located in Changchun. Land Area: 20,571 km² Population: 7.13 million and 38 nationalities 4

History of FAW-Volkswagen Joint Venture Contract On November 20 th, 1990 the Joint Venture Contract was signed in the Great Hall of the People between VW AG and FAW Group. On December 1 st, 2003, FAW Group and VW AG signed a Memorandum of Understanding in Beijing, extending the term of the FAW-VW Joint Venture Contract by 25 years till February 6 th, 2041. 6

History of FAW-Volkswagen Car Plant II - Opening On December 7 th, 2004 Car Plant II was established and started production. Gerhard Schroeder - German Chancellor and Mr. Zeng Peiyan Vice Premier of China State Council took part in the Ribbon-Cutting Ceremony. 7

Key Data FAW-Volkswagen Product Portfolio of Brand Volkswagen GOLF CADDY BORA SAGITAR 9 JETTA

Key Data FAW-Volkswagen Product Portfolio of Brand Audi AUDI A4 AUDI A6L 10

Key Data Sales Volume since 2000 000 units 450 300 298 269 277 >300 207 150 111 125 0 2000 2001 2002 2003 2004 2005 2006F Sales to Dealers 11 Deliveries to Customers

Key Data Productivity and headcount Productivity will improve through various measures of the Olympic programme : - Higher production - Process optimisation in the factory 12

4. Olympic Program VW China: Implementation at FAW-VW Branding/ Positioning Product The strongest market portfolio within China 10 12 new models until end of 2009 Costs Capacity Sales & Marketing Corporate Culture Competitive cost structure Capacity utilization > 90% Best in class sales network and evaluation of users Speeding up of decision processes local management 14

Olympic Program FAW-Volkswagen Products of Volkswagen Brand Every year one new product Higher positioning New product Bora Golf Jetta Caddy Sagitar New product New product 2005 2006 2007 2008 2009 15

Olympic Program FAW-Volkswagen Products of Audi Brand Every year at least one new product Audi A4 Import Audi A6L Audi Q7 Audi TT Audi A8L (Import) Audi Cabrio Audi A5 Coupe 2005 2006 2007 16

Olympic Program FAW-Volkswagen Material Cost Reduction (VW Brand Target) Material Cost / Car Substantial cost reduction measures are underway. 12/2004 12/2005 12/2006 12/2007 12/2008 17

Audi The Premium Brand in China Sales Volume without Imports units 80000 > 70.000 60000 55.457 51.614 55.944 40000 28.088 34.962 20000 16.041 0 2000 2001 2002 2003 2004 2005 2006F Sales to Dealers 19 Deliveries to Customers

Audi The Premium Brand in China Volume Comparison with Major Competitors Volume incl. Import 53,152 58,127 19,011 2004 2005 Q1 2006 20

Audi The Premium Brand in China Development of Dealer Network 120 99 14 28 41 56 71 2000 2001 2002 2003 2004 2005 2006F 21

Audi The Premium Brand in China Development of Dealer Network 120 exclusive dealers with clearly differentiated appearance within Audi corporate style Audi has the most advanced dealer network of premium brands 22

Audi The Premium Brand in China Dealer Standards 30m 2 show room space per new vehicle Contractually defined No. of Demo -, Replacement- and showroom cars Exclusive Audi corporate architecture and corporate identity Audi is the first brand to have exclusive used car standards and facilities Permanent training of dealer staff is key to Audi s success Constant measurement of customer satisfaction through Dealer Image Analysis and Mystery Shopping 23

Audi The Premium Brand in China Audi Brand Image [ Ranking by J.D.Power ] CSI SSI Year Ranking Ranking 2001 11 4 2002 1 1 2003 3 6 2004 3 1 2005 3 1 Target 1 1 CSI - Customer Satisfaction Index SSI - Sales Satisfaction Index 24

Joachim Wedler 1 st Vice President of FAW-Volkswagen Automotive Co., Ltd. FAW-Volkswagen Automotive Co., Ltd. Analyst/Investor Conference Shanghai, 24 May 2006 25

Disclaimer This presentation contains forward-looking statements and information on the business development of the Volkswagen Group. These statements may be spoken or written and can be recognized by terms such as expects, anticipates, intends, plans, believes, seeks, estimates, will or words with similar meaning. These statements are based on assumptions relating to the development of the economies of individual countries, and in particular of the automotive industry, which we have made on the basis of the information available to us and which we consider to be realistic at the time of going to press. The estimates given involve a degree of risk, and the actual developments may differ from those forecast. Consequently, any unexpected fall in demand or economic stagnation in our key sales markets, such as in Western Europe (and especially Germany) or in the USA, Brazil or China, will have a corresponding impact on the development of our business. The same applies in the event of a significant shift in current exchange rates relative to the US dollar, sterling and the yen. If any of these or other risks occur, or if the assumptions underlying any of these statements prove incorrect, the actual results may significantly differ from those expressed or implied by such statements. We do not update forward-looking statements retrospectively. Such statements are valid on the date of publication and can be superceded.