Current And Future Diesel Market Wolfgang Groth VWoA Engineering and Environmental Office 3/7/1992

Volkswagen and the Diesel Volkswagen introduced LD Diesel engines in 1976. VW today is the biggest Diesel engine producer in the world. 2001 VW produced 5 million cars. About 1.7 million vehicles were Diesel. Main Diesel market is Europe. 3/7/1992

Diesel market share in Germany and Europe 1987 1989 1991 1993 1994 1997 2000 1998 1996 1995 1992 1990 1988 5 10 15 20 25 30 Share [%] 1999 Die Diesel-Zulassungszahlen in Europa  und Deutschland steigen ständig. VW wird in diesem Jahr etwa 1,7 Mio. Dieselmotore produzieren. 3/7/1992

European Passenger cars Diesel market share Actual sales versus marketing projections 45 35 30 25 20 15 10 40 1990 92 94 98 96 2000 02 04 06 Prognosis 8/1997 Prognosis 6/2001 Prognosis 5/1998 Prognosis 3/1999 Prognosis 3/2000 Prognosis 3/2001 Actual amount Source: DRI 3/7/1992

West European diesel marketshare New passenger car registrations, 1st and 2nd Quarter 2001 Manufacturer Japanese Fiat GM Ford West Europe Renault BMW DC PSA VW Group Diesel Gasoline % Source: ACEA, Marketing Systems 3/7/1992

Why are European Diesel sales high? High fuel prices Engine performance benefits Tax incentives for Diesel fuel Voluntary fuel economy agreement of manufacturers CO2 reduction strategy Achievable emission standards 3/7/1992

The most fuel efficient vehicles in the European market Diesel-PKW VW Polo 1,9 SDI 60 PS VW Lupo 1,7 SDI 60 PS Seat Arosa 1,7 SDI 60 PS VW Lupo 1,4 TDI 75 PS Seat Arosa 1,4 TDI 75 PS Seat Arosa 1,2 TDI 61 PS Audi A2 1,2 TDI 61 PS VW 3,0l Lupo 61 PS VW Polo 1,4 75 PS Audi A2 1,4 75 PS VW-Konzern Competitors Mercedes A16 60 PS Opel Astra ECO 4 75 PS Smart cdi 41 PS  Das 3l-Auto ist sicherlich ein beachtenswerter Meilenstein in der erst 25-jährigen Volkswagen Dieselproduktion. Aber ein Blick auf die z. Zt. verbrauchsgünstigsten Fahrzeuge zeigt anschaulich, daß auch die anderen Motore vordere Plätze in der Verbrauchsrangfolge einnehmen, wobei der VW-Konzern eine führende Rolle einnimmt. Der günstigste Benzinmotor liegt bei 4,8l /100 km. Selbst der Golf TDI mit 4,9l verbraucht nicht wesentlich mehr als die kleinsten Benzinfahrzeuge. 2 3 4 5 6 Fuel consumption in l/100 km 3/7/1992

LD Diesel market in the US Currently Volkswagen is the only manufacturer offering LD Diesel vehicles in the US Golf TDI Jetta TDI New Beetle TDI About 7% of our total sales are Diesel In Canada we sell about 30% Diesel 3/7/1992

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Marketing obstacles in the US Diesel image Noisy Smelly Visible smoke Fuel prices much lower than in Europe Diesel concept cost higher than gasoline 3/7/1992

Positive US Marketing aspects Future Diesels will be very clean No visible smoke Smell largely reduced Cold start noise strongly reduced Performance superior to gasoline Fuel economy 40-50% better than conventional gasoline engine 3/7/1992

Distributor Injection High pressure injection systems Distributor Injection Pump Common-Rail System Unit-Injector 3/7/1992

VW exhaust aftertreatment systems VW particle filter system and NOx storage catalytic converter Oxi- cat. Dp sensor Temperature Particle filter NO2cKat. EDC l-sensor NOx sensor 3/7/1992

To achieve this the vehicle will meet the following criteria Volkswagen strongly believes that the Diesel will have a future role in the US. To achieve this the vehicle will meet the following criteria 3/7/1992

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