To: All U.S. Volkswagen Dealers, General Managers and Sales Managers
Re: Diesel Product Offerings
During the past several weeks there have been a number of articles in the press regarding the short and long term status of Volkswagen’s diesel product offerings in the United States. While most of the articles have been accurate, there have been some inconsistencies in the information reported. The purpose of this letter is to provide you with the latest position regarding diesel product offerings from Volkswagen in the United States.
The Volkswagen of America position on Diesel, both present and future: Volkswagen intends to defend its leadership in bringing efficient, durable, environmentally friendly and fun to drive diesel powered vehicles to the United States automotive market. For 2006, we currently offer the New Beetle sedan and Jetta with an optional TDI diesel engine in 45 states where this is permitted. The non-applicable states are California, Maine, Massachusetts, New York and Vermont. Later this year we will reintroduce the 2006 Touareg V10 TDI with a 50-state certification. The Touareg TDI will be the first light duty diesel in the U.S. to include a particulate filter. For the 2007 model year, the Touareg V10 TDI will be 45-state certified. As you are surely aware, EPA emission standards are becoming more stringent in calendar year 2007.
As a consequence, tightening standards have caused DaimlerChrysler to suspend production of the Jeep Liberty CRD, our closest price point diesel competitor. However, in anticipation of continued demand for the Jetta TDI,
we have increased TDI production and expect to carryover 9,000 to 10,000 MY2006 Special Edition models for sale into calendar year 2007. You may wish to alert your most loyal diesel customers of the limited availability of this model since these will be the only diesel Jettas offered during 2007.
Long time dealers might remember that diesel importation to the USA was suspended in 1987-1988, due to diminished sales. Because of loyal customer demand, a diesel engine option was re-launched for 1989 with great success.
Volkswagen remains strongly committed to the clean diesel market in the United States. Forty percent (40%) of Volkswagen’s global volume is in diesel-powered vehicles, so you can be certain that all of our corporate engineering expertise is focused on meeting the forthcoming standards efficiently and effectively. Volkswagen is making a significant change in its diesel powerplants by discontinuing the Pumpe Düse fuel injection system and adopting common rail technology. This will help to provide greater performance and address the changing diesel emission regulatory structure here in the U.S.
In calendar year 2008, Volkswagen will launch a Jetta with the latest diesel technology, featuring common rail fuel supply with particulate filtration and NOx control. We plan to offer this new diesel technology across a broader model range that will be 50-state certified.When the 2008 technology is introduced, we expect that our diesel customers will be able to take advantage of federal consumer tax credits similar in scope to those available for hybrids. Until then, we believe that our 2007 line-up, including the launches of highly desirable models such as Rabbit, Eos, GTI 4-door, Jetta Wagon, and R32 combined with continued demand for our fuel efficient 2.0T, 2.5L and 3.6L gasoline engines will help bridge the gap resulting from the reduced TDI availability until 2008.
Please feel free to share this information with all of your customer-contact personnel and your customers. OK. So this means that there will only be a Jetta TDI for 2008, and it confirms the Jetta Wagon and that more cars will be diesel-powered in the near future. Also, the supply chain of diesels will be available for a short time. We will eventually run out, but at least we will have some assistance. Remember, that's 10,000 nationwide. that runs out fast.