VOLKSWAGEN HONORED WITH TOP INDUSTRY AWARD FOR COMMITMENT TO THE ENVIRONMENT

Passat Wins for 4th Consecutive Year; New Beetle for 2nd

AUBURN HILLS, Mich. - Volkswagen's Passat and New Beetle recently earned dual Automotive Market Environmental Superiority (AMES) Awards for the 2003 model year, distinguishing them as two of the most environmentally sensitive cars available in the United States. This year's awards were jointly announced by AMES Award LLC, the automotive industry's leading authority on environmental performance, and R.L. Polk & Co., a trusted source for registration-based marketing solutions.

The Passat, a winner in the compact car category, has been honored in each of the four years the AMES Awards have been presented. The New Beetle, recognized in the sporty car category, earned its second consecutive AMES
Award.

AMES Award winners represent the upper quartile of environmental performance in each of eight car and nine light truck vehicle-utility classes. Vehicles are evaluated through a life cycle assessment, which determines the total environmental impact of an automobile from the extraction of the raw materials through fabrication to final disposal. The evaluation also includes tailpipe emissions and fuel economy in developing a vehicle's environmental superiority rating.

William Mattick, president and CEO of AMES Award LLC, says, "By choosing an environmentally superior vehicle that meets their utility needs, consumers can make an important contribution to reduce the potential of global warming and subsequent climate change."

Said Steve Keyes, director of corporate communications for Volkswagen of America, Inc., "This honor underscores Volkswagen's ongoing commitment to the environment via leading-edge technology and engineering. The right 'nuts and bolts', if you will, to preserve our air and water."

VOLKSWAGEN ANNOUNCES PRICES FOR ITS FIRST-EVER SPORT UTILITY VEHICLE, THE 2003 VOLKSWAGEN TOUAREG, AT THE DETROIT AUTO SHOW

DETROIT, Mich.—Volkswagen of America, Inc. revealed its highly anticipated SUV today at the Detroit Auto Show and announced a starting price tag of $34,900, making it the most affordable and best-equipped German luxury model of its type sold in North America. In Canada, the price is $52,100 Canadian.

The 2003 Volkswagen Touareg, pronounced “Tour-regg,” will go on sale in the U.S. and Canada beginning this summer and come in two initial versions—one model equipped with a 3.2-liter, 220 horsepower V6 engine and another with a 4.2-liter, 310 horsepower V8.

In describing the Touareg’s unique place in the market, Volkswagen is highlighting the SUV’s unmatched and uncanny combination of refined German luxury, Autobahn road performance, and mountain-goat tenacity to triumph over the toughest off-road terrain.

“The Touareg redefines the limits of mobility and stretches the limits of freedom. It rewrites the story of what SUVs should be all about,” said Dr. Jens Neumann, Volkswagen AG’s member of the Board of Management in charge of North America.

Volkswagen also announced pricing for its V8 model, which will start at $40,700 in the United States ($60,550 Canadian).

Both the V6 and V8 models offer a class-leading level of features and off-road engineering. For example, the V6 Touareg comes with standard items such as wood trim, eight-way adjustable leatherette seating, power glass sunroof, dual-zone Climatronic temperature control with rear seat controls, six-speed automatic transmission with Tiptronic®, multi-function leather wrapped steering wheel, automatic rain-sensor window wipers, alloy wheels and many more items. Uniquely, these features are combined with on- and off-road performance equipment, including a sophisticated all-wheel-drive system with ESP®, automatic hill-decent control, low-range transfer case, and center differential locking, to name a few.

The V8 version reaches an even higher level of refinement and all-road mobility with full leather 12-way power adjustable seating, 18-inch alloy wheels, and many more luxury items. In combination, the V8 provides an optional four-corner air-suspension with Continuous Damping Control (automatic height adjusting for all driving conditions), as well as standard center and optional rear differential locking.

Just a few of the safety items on both the V6 and V8 include front, side and head airbags and four-wheel ABS with emergency brake assist.

Volkswagen Diesels Score High in EPA’s Fuel Efficiency Report

AUBURN HILLS, Mich. – Volkswagen -- the only car company to sell high-tech diesel automobiles in the U.S. -- has taken four of the top 10 spots for best fuel economy in the Environmental Protection Agency’s (EPA) 2003 report.

Volkswagen’s TDI (Turbocharged Direct Injection) engine offers remarkable performance and unmatched economy. It utilizes a major advance in diesel technology where fuel is injected and ignited directly in the engine’s cylinder head. This is accomplished by the use of an advanced electronic diesel control. In simple terms, it can be said that TDI engine is a “drive by wire” with no mechanical controls from fuel pedal to fuel injection.

In very basic terms, diesel engines use heat created by compressing the air trapped in the cylinder to ignite fuel. To do this, diesels use a very high compression ratio. The high compression ratio produces more power on each stroke, leading to efficient fuel consumption.

The result is a 90 horsepower diesel engine that provides a wealth of low-end torque (155 ft. lbs. at 1,900 revolutions per minute), exceptional fuel figures and exhaust emissions that meet the stringent standards in the U.S. and Europe. In fact, the super efficient 1.9 liter TDI emits 20 percent less carbon dioxide than a comparable gasoline engine.

As an example of the TDI’s efficiency, with a tank of 14.5 gallons, the Jetta Wagon’s driving range is 725 miles, allowing a trip from Detroit to Atlanta on one tank.

Volkswagen’s TDI diesel engine is offered on 2003 Golf (starting at $16,690), 2003 New Beetle (starting at $17,195), 2003 Jetta (starting at $18,490) and 2003 Jetta Wagon (starting at $19,290).

According to the EPA, the most fuel-efficient Volkswagen cars are Jetta Wagon (diesel, manual), city 42/highway 50; Golf (diesel, manual), 42/49; New Beetle (diesel, manual), 42/49; and Jetta (diesel, manual), 42/49.

VOLKSWAGEN REVEALS 2003 NEW BEETLE CONVERTIBLE

Volkswagen of America, Inc. has released the first official photographs of its highly anticipated 2003 New Beetle convertible, due to arrive in North American dealerships by the end of the year.

The United States will be the largest market for the 2003 New Beetle convertible, which is being built at Volkswagen's long-standing assembly plant in Puebla, Mexico. When the convertible hits showrooms, it will be sold alongside the New Beetle sedan, first launched in North America in March of 1998. The sedan has since recorded U.S. sales of more than 320,000 units.

The New Beetle convertible follows in the footsteps of two of the highest-selling cabriolets in the world, the Volkswagen Cabrio and the original Beetle convertible of the '50s, '60s and '70s. Its design is absolutely distinct and strives to symbolize status-free fun. The new convertible's emotional elements and technical features reflect a top-down, free-spirited driving experience.

In the U.S., the 2003 New Beetle convertible will be initially offered with the 115 hp 2.0 engine in the GLS trim. Later in calendar year 2003, a 2.0 GL model will be available, as will the 150 hp 1.8T engine in the GLS and GLX trim levels. In Canada, the 2003 New Beetle convertible will be sold in the 115 hp 2.0 GLS and late-arriving 1.8T GLX trim levels. All models feature a standard five-speed manual or optional six-speed automatic transmission with Tiptronic® - a first for a car in this segment.

The technical highlights of the convertible design are the operation of the cloth-lined, three-layered top and the Automatic Rollover Supports. The open soft-top rests on the area of an imaginary C-pillar, which is reminiscent of the classic Beetle convertible. The power top is initially opened using a button and a one-hand release mechanism. With this power system, the top opens and closes at the press of a button, taking a mere 13 seconds each way.

The Automatic Rollover Supports have been harmoniously integrated into a silhouette of the open convertible. The system is located behind the rear seat. The rollover and crash sensors detect when the car is in danger of rolling and trigger the protection system.

Volkswagen will release pricing for the 2003 New Beetle Convertible later this fall.

Volkswagen Announces the End of its Classic Cabrio Convertible in the U.S. -- The Best-selling European Convertible in its time

AUBURN HILLS, Mich.-After 23 years and more than 223,000 cars sold in the United States alone, Volkswagen of America is saying good-bye to one of its most stylish and classic models, the Volkswagen Cabrio. The last Cabrio for the U.S. left the factory in Puebla, Mexico, this summer.

In its time, the Volkswagen Cabrio was the best-selling European convertible sold in the U.S. "For many people, the Volkswagen Cabrio has symbolized what our brand represents," said Frank Maguire, Volkswagen of America's vice president
sales and marketing. "It has a timeless, classic design, great German engineering, a fun attitude, and offers the best value of any European convertible. It is a car that crossed all status borders. It was fun but elegant at the same time."

In 1979, Volkswagen introduced Cabrio to the U.S. market as the Rabbit Convertible. It succeeded the original Beetle Convertible that left the market the same year. And now, in turn, the Cabrio is being replaced with the 2003 New Beetle Convertible, which will be officially introduced at the North American International Auto Show in January 2003.

Fortunately, there are still some 2002 Cabrios left at Volkswagen dealerships around the nation. They are offered in several trim levels, including an abundantly equipped GLX ($22,300).

All Cabrios come with a wealth of standard equipment including CFC-free air conditioning; a premium eight-speaker cassette stereo with CD capability; a defoggable glass rear window; four-wheel ABS brakes; an ignition key with separate radio
frequency remote transmitter; a leather-covered steering wheel; an anti-theft alarm system with the Immobilizer key system; front side impact airbags ; a pollen and dust filter; driver door-mounted power lock/unlock switches with central locking system, and much more.

Cabrios are powered by a 2.0-liter, SOHC, four-cylinder engine that produces 115 horsepower at 5,200 revolutions per minute; more importantly, its maximum torque of 122 ft. lbs. is realized at just 2,600 rpm. Mated to both engines is a standard five-speed manual transmission or an optional four-speed automatic.

Volkswagen Cabrios use a fixed, integrated roll bar that provides protection in a rollover but also permits secure anchorage for its advanced supplemental restraint system. In addition to front driver and passenger airbags, the Cabrio uses a seat belt tensioning system that tightens and optimally positions all outboard belts within milliseconds of a severe crash.

The Cabrio utilizes standard side airbags for front seat occupants. This system is integrated into the front seats so no matter where the front occupant adjusts his or her seat position, the airbag maintains its protective relationship. Standard on the Cabrio is a comprehensive warranty plan. Volkswagen's Protection Plus now includes a four-year/50,000 mile bumper-to-bumper warranty. The warranty covers wear-and-tear items and adjustments during the initial 12 months or 12,000
miles of ownership. In addition, Volkswagen offers a fully transferable limited powertrain warranty that covers five years or 60,000 miles, including 24-hour roadside assistance program.

Now, with the fully galvanized Cabrio, the Protection Plus package includes an outstanding limited corrosion warranty of six years with no mileage restrictions.