TDI: U.S. Market Success

March 2015

Our corporate objective is to drive toward a CO2 neutral/sustainable mobilityVolkswagen powertrain strategy

CO2-Neutral

and

Sustainable Mobility

Fuel Cell

Combustion Engine

CO2-neutral Electricity

Conventional ElectricityFossil Fuels

Hybrid

Battery Electric

Plug-In Hybrid

CO2-neutral fuels (liquid, gaseous)

VWoA- Product StrategyMarch 2015 2

VW is a leader in clean diesel technology TDI – Turbocharged Direct Injection Diesel

VWoA- Product StrategyMarch 2015 3

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Market introduction of our 50 state compliant clean diesel engine

SCR technology, balancing shafts, improved turbo

Low pressure EGR, VVT, more powerful, greater fuel efficient, 40% low emissions

TDIGen 1EA189

TDI Gen 3EA288

TDIGen 2EA189

Volkswagen Group Clean Diesel Sales Volume Clean Diesel volume Cars and SUVs 2014

Strong growth since introductionVW Group US Diesel market share PC ~ 70 %

Source for competitor sales: Polk

Diesel is an important differentiator for the VW GroupTDI – Turbocharged Direct Injection Diesel

99.094~ 79 %

March 2015 VWoA- Product Strategy 4

30%

70%

Competitors

VW Group

76,564

58,784

43,869

99,121 98,500

111,285

20132011 2012 201420102009

VW Diesel Product OfferingsTDI – Turbocharged Direct Injection Diesel

594

45

150

236

667

46

150

236

567

45

150

236

814

44

150

236

594

41

150

236

594

41

150

236

766

29

225

406

GolfTDI

JettaTDI

SportwagenTDI

PassatTDI

BeetleTDI

Beetle CabrioTDI

TouaregTDI

Range:

MPG Hwy:

Horsepower:

Torque:

VWoA- Product StrategyMarch 2015 5

The TDI AdvantageTDI – Turbocharged Direct Injection Diesel

Better DrivabilityHigher Fuel EconomyLower CO2 Emissions

VWoA- Product StrategyMarch 2015 6

44

35

0

10

20

30

40

50+26%

MY15 Passat TDI

Manual

MY15 Passat Gasoline Manual

217237

0

50

100

150

200

250

-9%

MY15 Passat TDI

Manual

MY15 Passat Gasoline Manual

236

184

0

50

100

150

200

250

+28%

MY15 Passat TDI

Manual

MY15 Passat Gasoline Manual

CO

2 g

/mile

Hig

hw

ay F

uel

Eco

no

my

(mp

g)

Torq

ue

(lb

-ft)

21% of Volkswagen sales are diesel TDI – Turbocharged Direct Injection Diesel

TDI Installation Rates by Model

39.0%

16.0%

76.0%

30.0%

11.0%

52.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Golf Jetta JettaSportwagen

Passat Beetle(incl. Conv.)

Touareg

Source: CY2012 YTD sales data; Beetle and Beetle Convertible TDI sales March 2013

VWoA- Product StrategyMarch 2015 7

Consumer Reports testing shows real world MPG advantage for TDIsTDI – Turbocharged Direct Injection Diesel

VWoA- Product StrategyMarch 2015 8

-3

-2

-1

0

1

2

3

4

2012 Passat TDI 2010 Fusion 2009 Malibu 2011 Accord 2011 Optima

MP

G (

com

b c

ity/

hw

y) D

iffe

ren

ce

MPG Difference between EPA test values and Consumer Reports real world test figures

2012 Passat TDI Competitor F Competitor M Competitor A Competitor 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 TDI – a German antonym for "range anxiety.“- Michael Harley, AutoBlog

Gasoline

DieselHybrid

• Comparison between user reported fuel economy and EPA test figures

• TDI drivers report better fuel economy than EPA window sticker

Above line: Real world fuel economy better than EPA

Below line: Real world fuel economy worse than EPA

Majority of data points are above line

Diesel owners achieve better fuel economy than window stickerTDI – Turbocharged Direct Injection Diesel

Source: Fueleconomy.gov

March 2015 VWoA- Product Strategy 9

VW‘s limited production XL1 shows a glimpse of VWs future technology innovationsTDI – 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 TDI 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.

VWoA- Product StrategyMarch 2015 10

Summary

• Improved fuel efficiency without sacrificing performance

• Lower CO2 emissions, supporting environment and GHG compliance

• Real-world fuel economy exceeds EPA figures

VWoA- Product StrategyMarch 2015 11

TDI – Turbocharged Direct Injection Diesel