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 Clean Diesel Gen 1 2009: U.S. Market introduction of our 50 state EA189 Diesel Engine compliant clean diesel engine Clean Diesel Gen 2 Next generation design: cleaner, EA288 Diesel Engine more powerful, more fuel efficient • 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 Current diesel vehicles Future diesel vehicle offerings The TDI Advantage TDI – Turbocharged Direct Injection Diesel Lower CO2 Emissions Higher Fuel Economy Better Drivability 200 236 178 50 250 -24% +34% 43 +34% 40 200 150 177 136 32 ) lbs 30 ft 150 100 Hwy MPG Hwy Hwy MPG Hwy 20 100 Torque ( Torque 50 10 50 0 0 0 MY13 Passat MY13 Passat MY13 Passat MY13 Passat MY13 Passat MY13 Passat Gasoline TDI Gasoline TDI* Gasoline TDI *Manual transmission Diesel sales growth 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 20% of Volkswagen sales are diesel TDI – Turbocharged Direct Injection Diesel TDI Installation Rates by Model 100.0% 80.0% 86.4% 60.0% 50.0% 51.2% 40.0% 20.0% 22.0% 25.1% 13.8% 14.2% 0.0% Golf Jetta Jetta Passat Beetle Beetle Cabrio Touareg Sportwagen Source: CY2012 YTD sales data; Beetle and Beetle Convertible TDI sales March 2013 Reductions in emissions from diesel vehicles since 1990 100% NOx Emissions PM Emissions 80% 60% 40% 20% 96% fewer NOx 98% fewer PM emissions emissions 0% 1990 2012 1990 2012 Overall carbon footprint “well to wheel” Disel* Gasoline car* Disel Hybrid** Gasoline Hybrid** Electric Vehicle (D) Electric Vehicle(US) Well to tank Electric Vehicle(CN) Tank to wheel 0 50 100 150 200 250 *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 Consumer Reports testing shows real world MPG advantage for TDIs TDI – Turbocharged Direct Injection Diesel MPG Difference between EPA test values and Consumer Reports real world test figures 4 3 2 ) Difference ) 1 hwy 0 -1 -2 MPG (comb city/(comb MPG -3 2012 Passat TDI 2010 Fusion 2009 Malibu 2011 Accord 2011 Optima Consumer Reports achieved 51 mpg highway with a 2012 Passat TDI Passat TDI wins “40 MPG Challenge” by Edmunds TDI – Turbocharged Direct Injection Diesel Edmunds.com 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. Fuel cost for 700 Fuel costs: 1yr/12,000 Ranking by MPG Avg.MPG Highway FE miles mi 1) VW Passat TDI 45.1 $71 $1,128 51.7 2) Mazda 3i Grand 38.8 $80 $1,259 38.9 Touring 3) Ford Focus SFE 37.9 $81 $1,288 38.8 4) Hyundai 35.5 $87 $1,376 35.1 Veloster 5) Kia Rio 5 35.3 $88 $1,383 34.5 6) Chevrolet Sonic 37.0 $84 $1,322* 34.2 Turbo Economic benefits of 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 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) Passat TDI attempts Guinness World Record TDI – Turbocharged Direct Injection Diesel 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. World’s record single tank of diesel fuel 84 MPG/1626 miles on one tank of fuel 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! Diesel Product Offerings TDI – Turbocharged Direct Injection Diesel Golf Jetta Sportwagen Passat Beetle Beetle Cabrio Touareg TDI TDI TDI TDI TDI TDI TDI Range: 609 609 609 795 594 594 765 MPG Hwy: 42 42 42 43 41 41 29 Horsepower: 140 140 140 140 140 140 225 Torque: 236 236 236 236 236 236 406 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 .