Jonathan Browning President and CEO, Volkswagen Group of America, Inc., 2011 Los Angeles Auto Show Press Conference Speech

JONATHAN BROWNING REMARKS

Good morning ladies and gentlemen.

It's a pleasure to be in Los Angeles and to update you on Volkswagen’s progress.

A lot has happened since we were last here in LA. Volkswagen is continuing to invest in the U.S. market and the resulting momentum is clear for all to see.

Our strategy for this market isn’t just a local imperative. It is a global priority. Our product strategy of delivering affordable, German engineering is paying dividends. I am pleased to confirm that we will achieve our goal of selling more than 300,000 vehicles this year. In fact, we’ve already surpassed our 2010 calendar year results in the first 10 months of this year.

The sales momentum doesn’t tell the whole story – it’s the outcome of doing things right. The focus of our efforts is on laying solid foundations for long-term, sustained success.

We are writing a new chapter for our company here in the U.S. -- with a commitment that is beyond anything Volkswagen has exhibited before.

Our new, state of the art Chattanooga plant, which builds the all-new 2012 Passat, officially opened in late May and is an integral part of our U.S. growth strategy. We are pleased to have Frank Fischer, our Chattanooga CEO, with us here today. Chattanooga not only minimizes the risk from currency fluctuations, it helps us build a deeper, stronger connection to the U.S. auto sector and our customers.

Developing and delivering the right vehicles is at the heart of our strategy – here our approach comes from the very roots of our company. Our philosophy can be summed up as: Everyone deserves a better car.

To be precise, that means raising the bar in each segment for performance, technology, fit and finish, driving dynamics and value. Let me show you some examples…

At Volkswagen, the letter “R” means top-notch performance, as seen in the 256-horsepower Golf R. Now, I am pleased to show you the second R model for the U.S. – the Beetle R.

We are not yet releasing performance data, but I can tell you that the Beetle R will live up to its billing.

Visually, the Beetle R Concept offers a glimpse of what a production version will look like.

The front and rear-ends are widened by 1.2 inches, while the fenders are widened by 0.6 inches on either side.

The rear bumper has air exhaust vents that are integrated aerodynamically with a diffuser in the lower bumper area to improve downforce. A visual and acoustic highlight is the exhaust system which includes two sets of dual pipes.

The interior also makes an immediate impression with bucket seats and R-specific instrumentation.

For now, the Beetle R remains a concept, but we will be monitoring press and consumer feedback closely to gauge interest.

There’s also great news for another of our emotionally charged vehicles…the CC. Let’s take a look…

For 2013, we have incorporated new front and rear bumpers, added standard bi-xenon headlamps and newly designed LED tail lamps -- giving the exterior an even more distinctive and sporty edge.

Our customers will have the choice of two powertrains, both delivering impressive German driving dynamics.

And from a content perspective, the 2013 CC line-up will offer customers premium features with four new 18-inch wheel designs, two navigation system choices, an adaptive front lighting system with LED daytime running lights and ventilated and heated front seats.

Also…to meet consumer demand in terms of flexibility, we’ve added a five-seat configuration with room for three passengers in the rear, replacing the four-seat set-up in the previous model, giving greater versatility while retaining the CC’s sporty interior.

The 2013 model year CC will go on sale in the first quarter. More details and pricing will be announced closer to market introduction.

In September we started sales of the 2012 Passat and all-new Beetle.
Sometimes, as with these vehicles, the benefits of German engineering are clear for all to see. Sometimes, those benefits are more hidden.

For example, our products are being recognized as amongst the safest in the industry. In fact, nine of our vehicles – the most in the industry, including the new Passat --have been recognized by the Insurance Institute for Highway Safety as “Top Safety Picks.”

The strength of the Volkswagen products and brand are growing and we are privileged to share some very significant news today. Ladies and Gentlemen, I am pleased to introduce a special guest – Mr. Angus MacKenzie, Editor-in-Chief of Motor Trend Magazine. Angus…

ANGUS MACKENZIE REMARKS

Thanks Jonathan.

Every year the Motor Trend editors gather all the new and significantly improved cars launched during the previous 12 months and subject them to an exhaustive week of proving ground tests and real-world road loop driving.

They kick tires and fold seats. They look at panel fits and paint quality. They pore through data on acceleration times and fuel consumption and safety equipment. And at the end of the week they sit down to debate, discuss, and decide… the Motor Trend Car of the Year.

This year 35 cars were eligible for the award. But there can only one winner. And it gives me great pleasure to announce the 2012 Motor Trend Car of the Year is... the Volkswagen Passat.

The Passat won from the largest group of contenders assembled in the 62 year history of the award because it was the car that in the judge’s opinion best met its six key criteria:

• Advancement in design
• Engineering excellence
• Efficiency
• Safety
• Value
• And… performance of intended function
   

The Passat is a breakthrough car for Volkswagen, designed for America and made in America.

With an impressively roomy interior, precisely executed styling and an entertaining chassis, plus a choice of powertrains that includes a 280 horsepower V-6 and a highly efficient diesel, it’s a compelling new entry in one of the toughest, most competitive vehicle segments in the world – the mid-size family sedan.

I’d like to call on Jonathan and Frank Fischer to accept this award on behalf of all the people at Volkswagen who helped make the Passat the 2012 Motor Trend Car of the Year.


JONATHAN BROWNING REMARKS

Thank you Angus and thank you Frank.

The Motor Trend Car of the Year award is a testament to the engineering excellence embedded in our vehicles and a strong sign that our commitment to the American customer is beginning to be recognized.

On behalf of our Volkswagen employees who are watching our press conference live in Herndon and Auburn Hills, to our employees in Chattanooga and the development teams in Germany, I want to extend a heartfelt thank you to Motor Trend for recognizing the 2012 Passat as Motor Trend’s Car of the Year and congratulate the Volkswagen team worldwide for a job well done!

This is an exciting time at Volkswagen and we are indeed writing a new chapter in our American story…but there is still plenty more to come.

Thank you for your attention. Now, please join me to take a closer look at these great new vehicles.