Volkswagen of America Announces Stable January Sales

Company reports a dramatic 51 percent increase in TDI sales and ramps up for six exciting new model introductions in 2011; Jetta sales up 28 percent

HERNDON, Va., February 1, 2011 -- Volkswagen of America, Inc. today reported 18,401 units sold in January 2011, a 2.1 percent increase over prior year sales. TDI Clean Diesel sales were up 51 percent over January 2010; and Jetta sales were up 28 percent, lead by the all-new Jetta.

"We are pleased to see our new products such as Jetta and Touareg doing so well in the market," said Mark Barnes, Chief Operating Officer, Volkswagen of America, Inc. "Because of that success, we are seeing some product shortages on key models that affected our sales in January."

The global best-selling Golf is enjoying renewed popularity in the U.S. with sales up 69 percent compared to January 2010. The recently redesigned Touareg saw a 58 percent increase; its hybrid, TDI and gasoline offerings prove appealing to consumer desire for multiple powertrain options.

Volkswagen models secured top positions in the recently released Strategic Vision 2010 Total Value Index. Volkswagen Golf, CC and Routan secured first place in their respective segments. Strategic Vision is the industry's most comprehensive value study, ranking the best vehicles per dollar spent. Overall, Volkswagen Group of America was the full-line leader in Total Value for the second consecutive year.

Volkswagen of America, Inc.

Founded in 1955, Volkswagen of America, Inc. is headquartered in Herndon, Virginia. It is a subsidiary of Volkswagen AG, headquartered in Wolfsburg, Germany. Volkswagen is one of the world's largest producers of passenger cars and Europe's largest automaker. Volkswagen sells the Eos, New Beetle, New Beetle Convertible, Passat, Passat Wagon, Golf, GTI, Jetta, Jetta SportWagen, CC, Tiguan, Touareg and Routan through approximately 600 independent U.S. dealers. All 2011 Volkswagens come standard-equipped with Electronic Stabilization Program. This is important because the National Highway Traffic Safety Administration (NHTSA) has called ESC the most effective new vehicle safety technology since the safety belt. Visit Volkswagen of America online at www.vw.com or www.media.vw.com to learn more.

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<table width="100%" border="0" cellpadding="0" cellspacing="0"><tbody><tr><td valign="top" width="113"> VW - US Snapshot

</td><td valign="top" width="48">

</td><td valign="top" width="48">

</td><td valign="top" width="42">

</td><td valign="top" width="39">

</td><td colspan="3" valign="top" width="139">---------- YEAR-TO-DATE -----

</td></tr><tr><td valign="top" width="113"><br class="spacer_">

</td><td valign="top" width="48">January-11 Actual

</td><td valign="top" width="48">January-10 Actual

</td><td valign="top" width="42">Yr/Yr % change

</td><td valign="top" width="39">Actual Vs. Target

</td><td valign="top" width="48">January-11 YTD Actual

</td><td valign="top" width="48">January-10 YTD Actual

</td><td valign="top" width="42">Yr/Yr % change

</td></tr><tr><td valign="top" width="113">Rabbit/Golf

</td><td valign="bottom" width="48">1,035

</td><td valign="bottom" width="48">612

</td><td valign="bottom" width="42">69.1%

</td><td valign="bottom" width="39">23.2%

</td><td valign="bottom" width="48">1,035

</td><td valign="bottom" width="48">612

</td><td valign="bottom" width="42">69.1%

</td></tr><tr><td valign="top" width="113">GTI A5/A6

</td><td valign="bottom" width="48">969

</td><td valign="bottom" width="48">933

</td><td valign="bottom" width="42">3.9%

</td><td valign="bottom" width="39">-0.1%

</td><td valign="bottom" width="48">969

</td><td valign="bottom" width="48">933

</td><td valign="bottom" width="42">3.9%

</td></tr><tr><td valign="top" width="113">R32

</td><td valign="bottom" width="48">-

</td><td valign="bottom" width="48">-

</td><td valign="bottom" width="42">N/A

</td><td valign="bottom" width="39">N/A

</td><td valign="bottom" width="48">-

</td><td valign="bottom" width="48">-

</td><td valign="bottom" width="42">N/A

</td></tr><tr><td valign="top" width="113">Total Rabbit/Golf/GTI/R32

</td><td valign="bottom" width="48">2,004

</td><td valign="bottom" width="48">1,545

</td><td valign="bottom" width="42">29.7%

</td><td valign="bottom" width="39">10.7%

</td><td valign="bottom" width="48">2,004

</td><td valign="bottom" width="48">1,545

</td><td valign="bottom" width="42">29.7%

</td></tr><tr><td valign="top" width="113">Jetta Sdn A5/A6

</td><td valign="bottom" width="48">9,742

</td><td valign="bottom" width="48">7,569

</td><td valign="bottom" width="42">28.7%

</td><td valign="bottom" width="39">3.2%

</td><td valign="bottom" width="48">9,742

</td><td valign="bottom" width="48">7,569

</td><td valign="bottom" width="42">28.7%

</td></tr><tr><td valign="top" width="113"> SportWagen A5/A6

</td><td valign="bottom" width="48">1,718

</td><td valign="bottom" width="48">1,324

</td><td valign="bottom" width="42">29.8%

</td><td valign="bottom" width="39">7.4%

</td><td valign="bottom" width="48">1,718

</td><td valign="bottom" width="48">1,324

</td><td valign="bottom" width="42">29.8%

</td></tr><tr><td valign="top" width="113">Total Jetta

</td><td valign="bottom" width="48">11,460

</td><td valign="bottom" width="48">8,893

</td><td valign="bottom" width="42">28.9%

</td><td valign="bottom" width="39">3.8%

</td><td valign="bottom" width="48">11,460

</td><td valign="bottom" width="48">8,893

</td><td valign="bottom" width="42">28.9%

</td></tr><tr><td valign="top" width="113">New Beetle - Coupe

</td><td valign="bottom" width="48">107

</td><td valign="bottom" width="48">1,943

</td><td valign="bottom" width="42">-94.5%

</td><td valign="bottom" width="39">33.8%

</td><td valign="bottom" width="48">107

</td><td valign="bottom" width="48">1,943

</td><td valign="bottom" width="42">-94.5%

</td></tr><tr><td valign="top" width="113"> - Convertible

</td><td valign="bottom" width="48">164

</td><td valign="bottom" width="48">224

</td><td valign="bottom" width="42">-26.8%

</td><td valign="bottom" width="39">-18.0%

</td><td valign="bottom" width="48">164

</td><td valign="bottom" width="48">224

</td><td valign="bottom" width="42">-26.8%

</td></tr><tr><td valign="top" width="113">Total New Beetle

</td><td valign="bottom" width="48">271

</td><td valign="bottom" width="48">2,167

</td><td valign="bottom" width="42">-87.5%

</td><td valign="bottom" width="39">-3.2%

</td><td valign="bottom" width="48">271

</td><td valign="bottom" width="48">2,167

</td><td valign="bottom" width="42">-87.5%

</td></tr><tr><td valign="top" width="113">Eos

</td><td valign="bottom" width="48">249

</td><td valign="bottom" width="48">325

</td><td valign="bottom" width="42">-23.4%

</td><td valign="bottom" width="39">-26.8%

</td><td valign="bottom" width="48">249

</td><td valign="bottom" width="48">325

</td><td valign="bottom" width="42">-23.4%

</td></tr><tr><td valign="top" width="113">Passat Sdn

</td><td valign="bottom" width="48">76

</td><td valign="bottom" width="48">584

</td><td valign="bottom" width="42">-87.0%

</td><td valign="bottom" width="39">8.6%

</td><td valign="bottom" width="48">76

</td><td valign="bottom" width="48">584

</td><td valign="bottom" width="42">-87.0%

</td></tr><tr><td valign="top" width="113"> Wgn

</td><td valign="bottom" width="48">32

</td><td valign="bottom" width="48">172

</td><td valign="bottom" width="42">-81.4%

</td><td valign="bottom" width="39">60.0%

</td><td valign="bottom" width="48">32

</td><td valign="bottom" width="48">172

</td><td valign="bottom" width="42">-81.4%

</td></tr><tr><td valign="top" width="113">Total Passat

</td><td valign="bottom" width="48">108

</td><td valign="bottom" width="48">756

</td><td valign="bottom" width="42">-85.7%

</td><td valign="bottom" width="39">20.0%

</td><td valign="bottom" width="48">108

</td><td valign="bottom" width="48">756

</td><td valign="bottom" width="42">-85.7%

</td></tr><tr><td valign="top" width="113">CC

</td><td valign="bottom" width="48">1,383

</td><td valign="bottom" width="48">1,891

</td><td valign="bottom" width="42">-26.9%

</td><td valign="bottom" width="39">-20.5%

</td><td valign="bottom" width="48">1,383

</td><td valign="bottom" width="48">1,891

</td><td valign="bottom" width="42">-26.9%

</td></tr><tr><td valign="top" width="113">Tiguan

</td><td valign="bottom" width="48">1,539

</td><td valign="bottom" width="48">1,424

</td><td valign="bottom" width="42">8.1%

</td><td valign="bottom" width="39">-13.1%

</td><td valign="bottom" width="48">1,539

</td><td valign="bottom" width="48">1,424

</td><td valign="bottom" width="42">8.1%

</td></tr><tr><td valign="top" width="113">Touareg

</td><td valign="bottom" width="48">495

</td><td valign="bottom" width="48">314

</td><td valign="bottom" width="42">57.6%

</td><td valign="bottom" width="39">-6.6%

</td><td valign="bottom" width="48">495

</td><td valign="bottom" width="48">314

</td><td valign="bottom" width="42">57.6%

</td></tr><tr><td valign="top" width="113">Routan

</td><td valign="bottom" width="48">892

</td><td valign="bottom" width="48">704

</td><td valign="bottom" width="42">26.7%

</td><td valign="bottom" width="39">12.9%

</td><td valign="bottom" width="48">892

</td><td valign="bottom" width="48">704

</td><td valign="bottom" width="42">26.7%

</td></tr><tr><td valign="top" width="113">

</td><td valign="top" width="48"><br class="spacer_">

</td><td valign="top" width="48"><br class="spacer_">

</td><td valign="top" width="42"><br class="spacer_">

</td><td valign="top" width="39"><br class="spacer_">

</td><td valign="top" width="48"><br class="spacer_">

</td><td valign="top" width="48"><br class="spacer_">

</td><td valign="top" width="42"><br class="spacer_">

</td></tr><tr><td valign="bottom" width="113">TOTAL

</td><td valign="bottom" width="48"> 18,401

</td><td valign="bottom" width="48"> 18,019

</td><td valign="bottom" width="42">2.1%

</td><td valign="bottom" width="39">0.1%

</td><td valign="bottom" width="48"> 18,401

</td><td valign="bottom" width="48"> 18,019

</td><td valign="bottom" width="42">2.1%

</td></tr></tbody></table>

18 passat wagons?

take out the jetta and VW is a dead brand that one would hardly expect to have 800k annual sales anytime soon.

Subaru pulled further ahead of VW again this month.. with only 4 models.

Volkswagen has alot of niche models. All in all, its clear that Volkswagen's branding strategy hasn't been working. I looked back to when the current generation Passat debuted and the reviews were filled with "Phaeton-lite" comments that eventually led to how expensive it was. Similarly equipped, it was never in the same range as any competitors and alot of the time, you could get get more car for the money elsewhere.

People like to complain about the new Passat's lower market position and lack of luxury features, but its obviously a failing strategy. The same could be said of the Touareg and Eos, even the Tiguan to an extent, while the New Beetle has long lost its popularity, after 13 years on the market. The Routan is flawed by way of rebadging. The Golf showcases America's aversion to hatchbacks; its biggest selling feature being the TDI model.

Subaru has itself positioned better with more focused offerings. Forester and Outback have always been popular, while the Legacy and Impreza fall behind, mostly getting sales due to the AWD legacy (no pun intended) Subaru has built.