Volkswagen Group of America, Inc.

Joint Commission on Transportation Accountablity Technology Subcomittee Wednesday, June 19, 2013

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

• In 2009 - VW first to introduce a 50-state clean diesel engine in the U.S.

• In 2012 - VW sold 90,295 clean diesels representing 72% of all light duty

diesel vehicles sold in U.S.

• VW offers 7 clean diesel models, more than any other brand

2009: U.S. Market introduction of our 50 state compliant clean diesel engine

Clean Diesel Gen 1 EA189 Diesel Engine

Clean Diesel Gen 2 EA288 Diesel Engine

Next generation design: cleaner, more powerful, more fuel efficient

Current diesel vehicles

Future diesel vehicle offerings

178

136

0

50

100

150

200

MY13 PassatGasoline

MY13 PassatTDI

Hw

y M

PG

177

236

0

50

100

150

200

250

MY13 PassatGasoline

MY13 PassatTDI

Torq

ue

(ft

lbs)

The TDI Advantage TDI – Turbocharged Direct Injection Diesel

-24%

Better Drivability

32

43

0

10

20

30

40

50

MY13 PassatGasoline

MY13 PassatTDI*

Hw

y M

PG

Higher Fuel Economy Lower CO2 Emissions

+34% +34%

*Manual transmission

May TDI Sales - 22.3% of overall sales - 8,482 units sold Year-to-Date TDI Sales - 21.7% of overall sales - 36,818 units sold - Best Ever year-to-date results

Diesel sales growth

20% of Volkswagen sales are diesel TDI – Turbocharged Direct Injection Diesel

TDI Installation Rates by Model

50.0%

22.0%

86.4%

25.1%

13.8% 14.2%

51.2%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Golf Jetta JettaSportwagen

Passat Beetle Beetle Cabrio Touareg

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

NOx Emissions

96% fewer NOx emissions

PM Emissions

98% fewer PM emissions

0%

20%

40%

60%

80%

100%

1990 2012 1990 2012

Reductions in emissions from diesel vehicles since 1990

0 50 100 150 200 250

Electric Vehicle(CN)

Electric Vehicle(US)

Electric Vehicle (D)

Gasoline Hybrid**

Disel Hybrid**

Gasoline car*

Disel*

Well to tank

Tank to wheel

*vehicle weight: 1,400 kg; displacement: 2 liters; Engine performance: 100kw ** Further developed and hybridized vehicles coming onto the market in the next few years D electricity mix in Germany in 2011 US Electricity mix in USA in 2011 CN Electricity mix in China in 2011

Overall carbon footprint “well to wheel”

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

Consumer Reports achieved 51 mpg highway with a 2012 Passat TDI

-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

Edmunds.com

Ranking by MPG Avg.MPG Fuel cost for 700

miles

Fuel costs: 1yr/12,000

mi Highway FE

1) VW Passat TDI 45.1 $71 $1,128 51.7

2) Mazda 3i Grand

Touring 38.8 $80 $1,259 38.9

3) Ford Focus SFE 37.9 $81 $1,288 38.8

4) Hyundai

Veloster 35.5 $87 $1,376 35.1

5) Kia Rio 5 35.3 $88 $1,383 34.5

6) Chevrolet Sonic

Turbo 37.0 $84 $1,322* 34.2

Passat TDI wins “40 MPG challenge” Going up against nothing but compact cars or smaller, the Passat TDI still managed to get the most by using the least.

Passat TDI wins “40 MPG Challenge” by Edmunds TDI – Turbocharged Direct Injection Diesel

Audi recently quantified savings for Audi Q7 and A3 TDI owners: • Saved owners more than $26 million at the pump • Saved over 4.5 million gallons of gasoline++ • Prevented more than 22,000 tons of C02 from • Saved more than 240,000 barrels of foreign crude oil

Economic benefits of diesel

If every 3rd US car were diesel, the US could cancel its

entire shipment of crude-oil imports from Saudi Arabia –

1.4 million barrels/day or $41 billion! (Bosch statistic)

What is this Guinness World Record thing all about? We will be attempting to beat the current Guinness World Record of 67.9 mpg on a drive that visits all 48 continental U.S. states over a planned distance of 8,000 miles.

Passat TDI attempts Guinness World Record TDI – Turbocharged Direct Injection Diesel

John and Helen Taylor drove a stock 2012 Passat TDI SE from Houston, Texas to Sterling, Virginia without refueling.

1,626.1 miles from just 19.3 gallons, or

84.1 MPG!

84 MPG/1626 miles on one tank of fuel

World’s record single tank of diesel fuel

Diesel Product Offerings TDI – Turbocharged Direct Injection Diesel

609

42

140

236

609

42

140

236

609

42

140

236

795

43

140

236

594

41

140

236

594

41

140

236

765

29

225

406

Golf TDI

Jetta TDI

Sportwagen TDI

Passat TDI

Beetle TDI

Beetle Cabrio TDI

Touareg TDI

Range:

MPG Hwy:

Horsepower:

Torque:

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

Public policy recommendations

Level the playing field with incentives

such as HOV LANE ACCESS

Remove the TAX

DISPARITY between

gasoline and diesel fuel

Diesel Technology Summary

• Most affordable, sustainable, and highest performing technology

• 30% better fuel economy

• Lower carbon emissions