CSR Report

AT HOME IN AMERICA 2010 CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT

CONTENTS CEO Welcome

1

At Home in America Overview

2

Corporate Giving

4



Education







Partners In Education





5





Research and Development



9



Community



10



Employees



14

Safety

4

18



Innovation



19



Next Generation



23

Environment

24



Chattanooga Plant



26



Innovation



28 30

Diversity

Inclusion



31



Network



33



Talent Management



35



Accountability



36

WELCOM E

Volkswagen is at home in America. Our new production facility in Chattanooga, Tenn., is a part of our $4 billion commitment to the U.S. market. Our American workforce is expanding to more than 4,500 employees. Our Tennessee plant will provide 2,000 direct jobs, nearly 9,500 indirect jobs and an estimated $12 billion in economic growth for the region. We also have a significant presence at our corporate headquarters in Herndon, Va., at our cutting-edge electronic research facility in Palo Alto, Calif., and at our administrative offices in Auburn Hills, Mich. Our subsidiary operations and our dealer network stretch from coast to coast, and from Canada to Mexico. Being at home in America isn’t just about providing paychecks and selling cars. It also means being a good corporate citizen. And we take that responsibility seriously. Global challenges demand solutions from our industry that go beyond borders and the usual boundaries of sectors and segments. That’s why corporate social responsibility is so deeply embedded in the culture of the Volkswagen Group. It starts at the top, at our global headquarters in Germany, and extends throughout our operations in more than 150 countries. As one of the world’s leading automakers, we recognize we have a special responsibility as a corporate citizen. Our products provide the mobility that is a hallmark of modern life. They contribute to economic growth. They encourage freedom of movement and expand possibilities for individuals and society.

But increased mobility creates challenges as well as opportunities. We have an obligation to protect the safety of our customers. We have an obligation to protect our environment. We have an obligation to provide alternatives to our dependence on fossil fuels. We have other responsibilities as well — to be a good employer, to be a good neighbor, to behave ethically and responsibly in all of our dealings with others. As chief executive officer for Volkswagen Group of America, I am pleased to present this report detailing our corporate social responsibility initiatives in the United States. I hope it will give you a better understanding of our commitment to good corporate citizenship, safety, environmental sustainability and diversity. You will find information about our education partnerships, our philanthropic endeavors, our exciting work on automobile safety and alternative fuels; the steps we are taking to protect the environment; and our efforts to promote diversity in our workforce and among our many suppliers. We are doing all these things not just because it’s good for business, but also because it’s the right thing to do. Being at home in America means giving back to the community. That’s what Americans do. That’s what Volkswagen does.

Jonathan Browning President and CEO, Volkswagen Group of America, Inc.

1

VOLKSWAGEN GROUP of A MERICA

Since opening our first location in the United States in 1955, we’ve been hard at work at home in America. Our U.S. operations now include: • 3,000 corporate, subsidiary and regional team members • 30,000 dealer team members • 2,000 new jobs by 2011 • 9,500 more supplier-related jobs • 800 dealer locations in all 50 states • 20 corporate/subsidiary locations • 11 regional dealer support offices

AT HOM E IN A M ER IC A

Part of the American success story since 1955.

Our Audi and Volkswagen vehicles inspire passion. So too do our people. In every hometown where we work and live, you know who we are by the difference we make. It’s what we demand of ourselves, our suppliers and our team members. It’s what our customers demand of us.

As citizens of the world, and of every community where we do business, we take our responsibilities seriously. We welcome the opportunity to make a difference. Our recent $4 billion investment in America — for new jobs, a new LEED®aggressive Tennessee manufacturing plant, a new American-made midsize sedan, new flagship dealers in New York and our LEED® Silver-certified Virginia headquarters — underscores the value we place in our 55-year relationship with the American consumer.

Aligned with our global philosophy, values such as respect for hard work, diversity, social responsibility and active sustainability are integral characteristics of our company culture. Living up to high standards and operating in a sustainable manner increase the value of the company and secure this value over the long run. Linked closely with our sound economic management, corporate social responsibility is vital for preventing risks, identifying growth opportunities at an early stage and enhancing the company’s reputation and relationship with our customers. The four principal areas where we prove our commitment every day are in: • Corporate Giving • Safety • Environmental Stewardship • Diversity At Volkswagen Group of America, corporate social responsibility is a collective effort, involving each core aspect of our business and at the highest levels of our leadership. We’re a responsible partner — on the road and in your neighborhood. Take a ride with us in the coming pages. Let us show you how.

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COR POR ATE GI VING EDUC ATION

The Reason Why: After I graduate with my bachelor’s in accounting, I want to get my master’s in accountancy and sit for the CPA exam. In the future, I want to have my own non-profit organization helping single women and families in underserved areas with financial planning. – Catherine Hanna Volkswagen Scholar Tennessee State University

COR POR ATE GI VING

PREPARING STUDENTS FOR TOMORROW’S AMERICAN WORKFORCE Our flagship Partners in Education program is a catalyst for educational enrichment, preparing students for America’s future workforce.

Volunteerism is an integral part of our corporate culture. VW Credit employees volunteer at the local food bank.

Corporate giving is deeply rooted in our business strategy — and in our soul. We believe vibrant public-private partnerships are critical to a sustainable economic future for America. Our philanthropic philosophy focuses on the well-being of the mind, body and communities in which we live. We actively invest in education, diversity, health, sports, the arts and the environment — with our time, talent and financial resources.

Beginning in Virginia, our corporate home, and expanding to Tennessee, our education partnership benefits students from kindergarten through high school, and college and graduate studies at premier research institutions. Our five-year commitment, including scholarships, grants, internships, training, vehicles and more, now totals more than $7.5 million. The program is designed to support students and teachers interested in advanced automotive technology and next-generation automotive engineering. We began with an initial commitment of $2.1 million to create a partnership with schools and technical institutions throughout Virginia and the greater Washington, D.C., area. In March 2009, we announced a $5.28 million expansion of the program in Tennessee, the new home of our U.S. manufacturing operations. We built on best practices and expanded the partnership with primary and secondary schools, colleges, universities and a leading national research laboratory.

SPOTLIGHT ON SUCCESS Although our efforts on behalf of science, technology, engineering and mathematics education are already robust, the gift from Volkswagen Group of America makes it possible for our faculty to increase their work in introducing even more students, as well as other teachers, to those subjects. – Dr. Shirley C. Raines, President, University of Memphis 5 a t h o m e .v o l k s w a g e n g r o u p a m e r i c a . c o m

COR P OR ATE GI V ING/ EDUC ATION

Partners in Education: Virginia • Our multi-year partnership with Fairfax County Public Schools established an advanced automotive technologies program benefitting more than 1,200 students. The program helps build a skilled homegrown workforce for the future. In June 2009, we donated 13 vehicles worth a total of nearly $500,000 to the program. The partnership also includes train-the-trainer opportunities and hosted seminars for students and instructors. • At George Mason University’s Volgenau School of Information Technology and Engineering, we fund scholarships for Distinguished Scholars, including full tuition, fees and room and board, as well as laptop computers for four years. These scholars represent the company and the school at corporate events, recruitment fairs and on-campus events. They also receive an internship with the company. • Our partnership with Northern Virginia Community College creates a statewide automotive program designed to improve training throughout Virginia. We’ve donated and delivered training vehicles to the college’s Alexandria and Manassas campuses, the C.S. Monroe Technology Center in Loudoun County and the Governor’s Career and Technical Academy in Arlington.

A REASON WHY In May 2010, 18 University of Virginia engineering students – selected to participate in Volkswagen’s first Global Ingenuity Program through our philanthropic commitment to UVA – concluded a two-week study abroad course in Germany. Course highlights included a program designed to allow students to address and offer solutions to real-world problems by participating in cross-cultural “think tanks” with students from the Technical University of Braunschweig. The two student teams worked collaboratively on a research and design problem assigned by Volkswagen Electronic Research Laboratory. The main goal was for students to find an innovative and safe way to assist the driver with performing different tasks and managing information while driving.

SPOTLIGHT ON SUCCESS The Vehicle Terrain Performance Lab at Virginia Tech received the first Volkswagen Faculty Innovation Grant in 2010. The lab’s mission is to improve vehicle system performance by studying the interactions between vehicles and terrain. Selected from five proposals submitted by Virginia Tech, Dr. John B. Ferris, associate professor of mechanical engineering, and his students will focus on developing modeling and simulation techniques for location-aware adaptation of vehicle dynamics under the year-long grant. Dr. Ferris conducted research in vehicle dynamics and chassis development in the automotive industry for 15 years before becoming a faculty member at Virginia Tech. 6 a t h o m e .v o l k s w a g e n g r o u p a m e r i c a . c o m

COR P OR ATE GI V ING/ EDUC ATION

• At The Excel Institute, we provide funding and vehicles for life-skills, computer literacy, one-on-one academic tutoring and technical training, helping to prepare students for high-demand, high-paying jobs in the automotive service industry. Volkswagen and Audi technicians also train the Institute’s automotive teachers on new technologies, maintenance and repair. And we are developing reciprocal shadowing and are hosting seminar opportunities for employees and students.

Partners in Education: Tennessee • Our educational partnerships in Tennessee began with Chattanooga State Community College, the lead institution for workforce training at our Chattanooga assembly plant. The program combines standardized training found throughout the Volkswagen Group worldwide with a customized curriculum developed by Chattanooga State.

• Though our partnership, we support the elite Rodman Scholars International Program at the University of Virginia for undergraduate engineering students. The program exposes distinguished students to the challenges, opportunities and benefits of international study and experience. We also partner with the university in support of a graduate engineering fellowship.

• Our multi-year partnership with Hamilton County Public Schools supports a summer teacher training institute, providing teachers with training to keep pace with the state’s new, more rigorous educational standards. Additional funds helped Calvin Donaldson Elementary School transform an unusable building into working student labs. We also support the county schools’ college exam preparation program.

• At Virginia Tech, we fund a five-year program focused on environmentally responsible technology, manufacturing and engineering. This program concentrates on cutting-edge research, offering students the opportunity to provide technical support for Volkswagen Group of America’s Jetta TDI® Clean Diesel race series. Through faculty development and innovation grants, we pursue major research initiatives, fund graduate research assistants and cover special research material costs.

• At Tennessee State University, we provide student scholarships and faculty support in the Colleges of Business and Engineering. We also fund an endowed chair for supply chain management and support pre-engineering, math and science programs developed for students from kindergarten through grade 12. • At the University of Tennessee-Knoxville, our Volkswagen Engagement Endowment Fund provides student aid and faculty support in supply chain logistics, mechanical engineering and environmental engineering.

SPOTLIGHT ON SUCCESS When Marcus Robinson first tried to enroll at The Excel Institute, a provider of vocational training for at-risk youth and adults, he was told he would have to wait three months. The then 31-year-old told educators at the automotive training facility that he needed to start immediately — because he probably wouldn’t be alive in three months. “I was a hoodlum,” Robinson explained. “The things I was involved in, I would not have been around.” Today, Robinson is an automotive instructor at The Excel Institute. His life is moving in a completely different direction, and he credits Volkswagen Group of America for playing a major role in educating his own students. To date, our support has enabled 225 students to participate in the Institute’s life skills program. 7 a t h o m e .v o l k s w a g e n g r o u p a m e r i c a . c o m

COR P OR ATE GI V ING/ EDUC ATION

• At Fisk University, our partnership supports high-achieving students who are engaged in community service by establishing a Volkswagen fellowship, combining elements such as environmental studies, service learning projects and global business projects. • Our partnership with Oak Ridge National Laboratory establishes a Volkswagen Distinguished Scholars Program for upper-division and postgraduate students interested in careers in the automotive industry. The program is run through Oak Ridge Associated Universities, a nonprofit organization that works closely with the lab in managing many of its student internship and post-graduate fellowship programs. • Our partnership with the University of Memphis supports an initiative to recruit, retain and prepare the next generation of specialists in science, technology, engineering and math. This program links schools with local businesses and reaches down to the kindergarten level to encourage interest in these subject areas. • The new Volkswagen Competitive Challenge Fund is part of our partnership with the University of Tennessee-Chattanooga, providing financial assistance to students for team projects, as well as support for faculty research, travel, recruitment and outreach. Funding particularly focuses on engineering, international studies and computer and environmental sciences.

A REASON WHY I heard about the scholarship from a professor. After I graduate from Fisk, I plan on getting my master’s degree in chemistry. I also plan on going to medical school. I want to be a family physician. The scholarship has been very helpful for me as I try to reach my goals. – Kelsey Burton, Volkswagen Scholar, Fisk University

SPOTLIGHT ON SUCCESS Undergraduate and graduate students, like Jennifer Lewis from the University of Tennessee, participate in cutting-edge automotive research projects under the mentorship of top engineers and scientists through the Volkswagen Distinguished Scholars Program. The summer research internships are offered to students from five select Tennessee universities in partnership with Oak Ridge National Laboratory. With her project, “The Perennial Question: Farmers’ Choices and the Biofuel Future,” Jennifer joined 10 other scholars for a hands-on learning experience that included weekly brown bag scientific seminars, a trip to our Chattanooga assembly plant and meetings with Volkswagen executives. 8 a t h o m e .v o l k s w a g e n g r o u p a m e r i c a . c o m

COR P OR ATE GI V ING/ EDUC ATION

DEVELOPING THE CARS OF TOMORROW, AT HOME IN AMERICA At Volkswagen Group of America, we believe the future is a doorway of opportunity. And we believe the future of our company is vitally linked to leading-edge research, both inside and outside the company. We use our expertise to create superior products through innovative and sustainable technologies. We share that knowledge and gain more by leveraging our partnerships with leading universities and research facilities. We are blending German engineering with American ingenuity for a better tomorrow. Electronics Research Laboratory The Electronics Research Laboratory (ERL) has delivered cutting-edge innovations for the Volkswagen Group since the lab’s inception in 1998. At its core, the ERL is a proponent of information exchange. Through educational affiliations, we invest in the future and expose ourselves to new ideas and unbridled enthusiasm. Through competition, we push ourselves and the rest of the industry to strive for excellence. At home in the Silicon Valley, the heart of California’s electronics corridor, our research labs have developed automotive innovations including driver-assisted technologies and communication tools that help drivers stay safer behind the wheel, such as LED headlights, speech recognition, Apple iPhone® integration, 3D graphics and more.

Volkswagen Automotive Innovation Laboratory Recently, the ERL, Volkswagen Group of America and Volkswagen AG took a major step in showing the world our commitment to the future with the grand opening of the Volkswagen Automotive Innovation Laboratory (VAIL) at Stanford University’s School of Engineering. Our $5.75 million commitment to VAIL includes $2 million for building construction and another $750,000 a year for five years to fund research and teaching activities. Partners in Learning Our passion for learning and innovation fuels us on the road to future mobility. Our goal is to accelerate automotive-related research in the areas of vehicle safety, mobility and environmental performance — all factors that will have a very real impact on the vehicles that consumers buy in the future. We collaborate with a community of industry and academic partners around the globe, including Stanford University, the Massachusetts Institute of Technology and the University of California-Berkeley.

SPOTLIGHT ON SUCCESS We are a proud sponsor of Apogee, Stanford University’s entry in the 2010 American Solar Challenge, a competition to design, build and drive solar-powered cars in a cross-country time and distance rally event. Teams from 17 universities worldwide competed in the 1,100mile drive from Broken Arrow, Okla., to Naperville, Ill., with Stanford taking fourth overall. Our support included providing the students with access to engineering expertise and mentorship from the researchers at the Electronics Research Lab, a Volkswagen Touareg as a support vehicle for the team and financial support of $50,000 over the course of two years. The race is not over yet; the Stanford team hopes to participate in the World Solar Challenge, an 1,877-mile race across the Australian continent. 9 a t h o m e .v o l k s w a g e n g r o u p a m e r i c a . c o m

COR POR ATE GI VING COM MUNIT Y

The Reason Why: I volunteered with the Chesapeake Bay Foundation at the Oyster Restoration Center. I was amazed by the breadth of their organization, and the fact that their intent was to protect the environment full circle from land to the watershed. I think volunteering is important for Volkswagen Group of America employees, and anyone in general, because it gives you an experience you may not have had otherwise. Volunteering teaches you about those in need. It allows you to appreciate what you have by giving back to the community. – Crystal Lim Freight Analyst, Vehicle Logistics Volkswagen Group of America

COR P OR ATE GI V ING/COM MUNIT Y

Employees from the Herndon office prepare for a day of oyster-bed restoration with the Chesapeake Bay Foundation.

American Cancer Society A nationwide, community-based, voluntary health organization dedicated to eliminating cancer.

We invest in the communities where we live. And we proudly support the work of many charitable and not-for-profit organizations dedicated to improving the lives of others. Our corporate giving is focused on seven signature partners. We encourage team members to join us in supporting these special programs by offering convenient payroll deductions. Our Matching Contributions program matches donations of up to $5,000 per employee.

Best Buddies International Providing friendship, jobs and leadership development for people with intellectual and developmental disabilities. Boys and Girls Clubs of Greater Washington Helping boys and girls of all backgrounds build confidence, develop character and acquire the skills needed to become productive, civic-minded, responsible adults. Chesapeake Bay Foundation The only independent charitable organization dedicated solely to restoring and protecting the Chesapeake Bay and its tributary rivers. Detroit Institute for Children Providing specialized diagnostic, medical and rehabilitative care to children with disabilities. The Rainbow Connection Grants wishes to Michigan children with life threatening or terminal illnesses. United Way of America The national organization dedicated to helping children and youth achieve their potential, promoting financial stability and independence and improving people’s health.

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COR P OR ATE GI V ING/COM MUNIT Y

AROUND THE WORLD Over 870 teams from 20 countries participated in the qualifying rounds of the Volkswagen Junior Masters international youth soccer tournament, the first competition of its kind. The U.S. champions, PDA Pele U12 boys soccer team from Zarephath, N.J., traveled to Madrid, Spain, for the final rounds, May 7-10, 2010. The Brazilian U13 soccer team triumphed after defeating Germany in the last round of competition. “The teams showed amazing character and perseverance,” said Samuel C. Nellins, head coach of PDA Pele, which won two matches during the event. “All of the teams from around the world were nothing short of fantastic, and each player should be proud of what he has been able to accomplish. While the U.S. team would have been thrilled to walk away with the world championship title, our main goal with this tournament was to provide the boys with a life-changing experience and an opportunity to further develop their playing skills.”

SPOTLIGHT ON SUCCESS Since 2007, Audi has been honored to be the exclusive automotive sponsor and official vehicle of the nonprofit organization Best Buddies International, founded by Anthony Kennedy Shriver. Audi has helped Best Buddies raise nearly $25 million at the charity’s primary fundraising events. The Audi Best Buddies Challenges in Massachusetts and California take riders on 100-mile bike races, raising thousands of dollars for the charity. This year, Best Buddies and Audi will introduce a new race in the nation’s capital. “We have had the privilege of employing Buddies at our U.S. headquarters and witnessing firsthand the impact of Best Buddies on the lives of those with intellectual and developmental disabilities,” says Johan de Nysschen, president of Audi of America. “We are honored to continue to support the organization’s incredible mission.” 12 a t h o m e .v o l k s w a g e n g r o u p a m e r i c a . c o m

COR P OR ATE GI V ING/COM MUNIT Y

The well-being of the mind, body and community are interrelated, which is why we also proudly support sports programs like: Boys and Girls Clubs of Greater Washington, providing a safe, comfortable and fun alternative for youth who would otherwise be home alone or on the street. Chattanooga Football Club, a national amateur soccer league team. DC SCORES combines afterschool creative writing, soccer and service for nearly 800 students at 25 schools in the Washington, D.C., area. Infinity Wellness Foundation, dedicated to fighting childhood obesity in the D.C. area. Volkswagen Junior Masters, an international soccer tournament for school teams and youth clubs with players under 13 years of age.

My dream is to fly with pride, to sing with power, to feel the rain kiss my skin, to play soccer on muddy fields. My dream is to design with passion, to soar through the clouds, to slide down a waterfall. My dream is to help with all my love. – “My Dream,” poem by Saba A., MacFarland Middle School, Washington, D.C.

Giving back to the community is our goal. VW Sales presents a check to the Leukemia & Lymphoma Society at a Houston Dynamo game.

A REASON WHY In partnering with DC SCORES through their Adopt-A-School program, we are encouraging students in schools throughout the community to become physically fit, feel part of a team and express themselves as agents of change.

As a person with Down Syndrome, Daniel lives with moderate mental retardation; he is unable to read or write except at the most rudimentary levels. Daniel also has a speech impairment, which makes communication difficult. But Daniel’s disabilities end where his art begins. He works with joy and confidence because he loves painting and drawing, creating worlds filled with beauty, adventure and exquisite proportion. Daniel’s selfassurance has blossomed since winning his VSA award. We are grateful to VSA for recognizing what we have always known: Daniel’s artistic voice communicates while spoken words fail him. – Jim and Sharon Forsythe, parents of Daniel, a VSA artist

SPOTLIGHT ON SUCCESS An international nonprofit organization, VSA , offers people with disabilities the opportunity to learn through, participate in and enjoy the arts. For nine years, Volkswagen Group of America has partnered with VSA to recognize these emerging and accomplished artists, reflecting our commitment to diversity and inclusion, and our support of the visual and performing arts. 13

a t h o m e .v o l k s w a g e n g r o u p a m e r i c a . c o m

COR POR ATE GI VING EMPLOYEES

The Reason Why: At Volkswagen Group of America, we do great things for the community. Everyone may know our brand and our vehicles, but the company is also big on helping others. I volunteered at the 5K walk for the American Cancer Society in Washington, D.C., getting donations and getting people involved. I believe we had 100 employees participating in the walk. It was a really good event. – Katie Smith Vehicle Order Manager Volkswagen Group of America

COR P OR ATE GI V ING/ E M PLOY EES

Though hard numbers don’t tell the real story of lives touched, our team members give back in big ways and small. A few examples among many:

Employees ready to take part in the Eunice Kennedy Shriver Challenge benefitting Best Buddies.

We are only as good as our people. We believe involved, inspired and energized employees are the hands, heart and soul of the company, enabling us to grow and thrive while meeting constant challenges in the marketplace. Our Volunteer Day program provides paid time off for any of our employees who take active, volunteer roles in community programs, as well as state and national charitable, service or relief efforts.

25

Percent of our workforce donating volunteer hours

300

 eam members participating in the dollar-for-dollar T matching program

340

Pints of blood donated

45,000

Miles walked, run, cycled while participating in charitable events

126,670

Dollars raised by Team Audi pedaling for Best Buddies



Countless

 miles and calories shared thanks to a fund-raising pancake S breakfast in Auburn Hills, Mich., supporting an Adopt-A-Family holiday program

SPOTLIGHT ON SUCCESS When I think of volunteering, I remember a quote I saw in the business school building at college: “Service is the rent we pay for living in this world of ours.” I think it is important for Volkswagen Group of America employees to get out and volunteer – to solve problems and fill needs in their communities. It’s good for the company, but more importantly volunteering makes you feel good. It makes this world a better place for all of us. – Matt Little Compensation and Payroll Manager, Human Resources Volkswagen Group of America 15 a t h o m e .v o l k s w a g e n g r o u p a m e r i c a . c o m

COR P OR ATE GI V ING/ E M PLOY EES

MANY HANDS MAKE LIGHT WORK In 2010, we sponsored the National Urban League’s Community Service Day, celebrating its 100 years of service. The National Urban League (NUL) is a civil rights organization dedicated to elevating the standard of living of historically underserved urban communities through economic empowerment. Over 1,000 volunteers engaged in more than a dozen different community service projects. Volkswagen Group of America employees participated as both team leaders and volunteers. Projects included landscaping, painting and construction of benches and sports courts. One team served breakfast to long-term care and hospice residents. Another painted 200 yards of fencing along the National Mall within the shadow of the Capitol Building. Others had the chance to just play with kids in need of a friend.

SPOTLIGHT ON SUCCESS Volkswagen Group of America took part in The National Urban League’s 100th birthday. By sponsoring a booth at the conference, and helping with a number of community service projects, employees from all over the country helped the NUL celebrate 100 years of empowering communities.

AROUND THE WORLD With our international “One Hour for the Future” beacon project, Volkswagen teams provide support for needy children and young adults around the world. This campaign was initiated by the Volkswagen Group Works Council 10 years ago. The idea was that, if every employee would forgo payment for a single hour of work, we could do a whole lot of good for the poorest of the poor: the street children of this world. And that idea did catch on, setting a snowball rolling. In the following years, it was not only thousands of employees at Volkswagen who took part in the campaign, but so did staffers at Audi, Volkswagen Sachsen and Financial Services AG around the world. Solidarity is not just a catchphrase for us. 16 a t h o m e .v o l k s w a g e n g r o u p a m e r i c a . c o m

COR P OR ATE GI V ING/ E M PLOY EES

THE PROMISE OF THE FUTURE LIES IN WHAT WE LEARN BY TEACHING We are future-oriented in our approach to the challenges we face in our communities and in our world. At all of our Volkswagen Group locations around the world, our responsibilities don’t end at the door to our showrooms, plants or research labs. We actively invest our time, talent and financial resources in education, diversity, health, sports, the arts and the environment. We believe in connecting with our customers, our communities and the environment. We believe by sharing and by teaching, we learn. This helps us create a better product — for our customers now and in the future.

As part of its commitment to education and leadership in the performing arts, Wolf Trap Foundation in Virginia offers a year-round internship program for college students. Volkswagen provides support for two summer interns and one fall intern.

SPOTLIGHT ON SUCCESS We care for our communities and strive to be the best at what we do. Our neighbors in Virginia at the Herndon Police Department, and in Chattanooga at the Hamilton County Sheriff’s Department and Chattanooga Police Department, share these values. That’s why we’ve proudly provided each law enforcement agency with two specially equipped vehicles that deliver the kind of performance they need to protect our communities with safety, comfort and style.

AROUND THE WORLD AIDS kills 850 people in South Africa every single day. The situation is a humanitarian catastrophe; it is also a social and economic one. Volkswagen has committed itself to fighting this epidemic, and its efforts have been remarkably successful. Volkswagen of South Africa MD, David Powels, valiantly rolled up his sleeves as Volkswagen staff members, friends, acquaintances and family members gathered round him and looked on with interest. Without much ado, the Volkswagen nurse brandished her syringe and jabbed it into the boss’s forearm. This show of public HIV-testing at a station set up under the open sky on the grounds of the Volkswagen plant in Uitenhage, South Africa, took place on World AIDS Day. “We need to create stronger awareness at all levels as part of the battle against HIV/AIDS,” Powels explained to an applauding workforce right after taking the test. The campaign was difficult to get off the ground because of taboos surrounding this disease. 17 a t h o m e .v o l k s w a g e n g r o u p a m e r i c a . c o m

SA FET Y

The Reason Why: We look at things from the user perspective, the human perspective. In designing any type of product for the vehicle, whether it’s applications on your instrument cluster, whether it’s touch-screen applications or a multi-media interface, that’s what we focus on. Our job is to understand how people use technology. We want to make sure they use it the best way, the safest way. – Brian Lathrop Team Leader, HMI Cognitive Psychologist, Electronics Research Lab Volkswagen Group of America

SA FET Y

Two reasons why safety will always be one of our top priorities

Because people drive our passion, our top priorities are crash prevention and occupant protection. As of 2008, every model year Audi and Volkswagen vehicle is equipped with both passive and active safety features.

Road safety is our driving concern. While the risk of being injured or killed in a road accident has fallen substantially – to the lowest numbers since 1950 – there were more than 33,000 vehicle-related deaths and 2.2 million auto injuries in the United States in 2009.

Our vehicles are designed to help prevent accidents from happening with a focus on: • Directional Stability • Steering Precision • Braking Power • Braking Stability • Operational Design All of our Volkswagen vehicles include the Prevent and Preserve Safety System, consisting of multiple standard safety features that all work together to help avoid crashes whenever possible and help protect occupants when a crash is unavoidable.



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SA FET Y

SAFETY DRIVES OUR REPUTATION It has to. We not only design and engineer our vehicles — we drive our families in them.

For those models tested, the Audi A4/S4, Q5 and Q7, and the Volkswagen Routan, Tiguan and Touareg all received the National Highway Traffic Safety Administration’s prestigious five-star award for both front and side impact tests.

Volkswagen Group vehicles have an excellent reputation for safety and reliability. The latest models from Audi and Volkswagen have recently received a number of awards for their safety features in the United States and Europe.

In Europe, six Volkswagen models, the Polo, Golf, Tiguan, Touran, Passat and Touareg, were awarded the maximum five-star Euro New Car Assessment Programme (NCAP ) rating in 2010. The Audi A4 was presented the coveted Euro NCAP Advanced award for its side assist lane change assistant, which supports the driver and can help to prevent accidents.

SPOTLIGHT ON SUCCESS 2010 Top Safety Pick winners: (top row left to right) Audi A3, A4, Q5, Volkswagen Golf 4-dr., (bottom row left to right) Jetta, Passat Sedan, Tiguan and Jetta Sportwagen

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SA FET Y

Active safety technologies on Audi and Volkswagen vehicles include: • Anti-Lock Brake System – Enables steering control while braking. • Anti-Slip Regulation – Prevents loss of wheel traction. • Electronic Differential Lock – Permits smooth starts on uneven surfaces. • Electronic Brake-Pressure Distribution – Maximizes braking power. • Electronic Stability Control – Reduces skidding and rollovers. • Engine Braking Assist – Prevents skidding on slippery surfaces. • Hydraulic Brake Assistant – Shortens braking distance. Electronic stability contol is standard on all our models as of 2009, ahead of the National Highway Traffic Safety Administration’s 2012 mandate. This feature potentially will save 9,600 lives and prevent up to 238,000 injuries in all types of crashes annually. Audi introduced this advanced feature to the U.S. market in 1999. Advanced active safety features are optional on some models: • Lane Assist – Monitors traffic lines on the pavement and assists the driver to stay in the lane by giving the appropriate warning. • Adaptive Cruise Control – Monitors the distance to vehicles in front via radar. • Side Assist System – Monitors rear and side blind spots. • High Beam Assist – Activates and lowers high beams automatically. • Dynamic Adaptive Headlights – Sweep around to follow curves. • Night Vision – Scans for pedestrians, warns driver with light and sound. • Back-Up Camera – Makes parking and reversing easier. • Voice Activation – Offers a more personalized way to interface in a hands-free mode. • Pre Sense Basic – Activates basic preventive occupant protection systems. • Pre Sense Front – Monitors traffic, warns the driver, increases braking force. • Pre Sense Rear – Scans traffic, moves seats into safest position, inflates seat sides. • Pre Sense Plus – Activates braking guard, prompts hard braking.

Passive safety features are design measures taken to protect the occupants of vehicles from injury or to reduce the risk of injury. These features include: • Standard driver and passenger side front airbags* • Side impact head and thorax airbags* • Safety belt pre-tensioners for front seat and rear seat occupants • High-strength safety design for improved crash performance Airbags are supplemental restraints only and will not deploy under all crash circumstances. Always use safety belts and seat children only in the rear, using restraint systems appropriate for their size and age.

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SAFETY FIRST Behind every car we make, across every brand, Volkswagen Group of America marries the science of engineering, the art of styling and the power of innovation to produce automobiles that excite the eyes, stir the soul and help protect drivers and passengers across the nation. 21

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INNOVATIVE TECHNOLOGIES DRIVE SAFETY IMPROVEMENTS While road safety statistics are improving, we continue to push for more innovative solutions. Using advanced sensors, artificial intelligence and a process called sensor fusion, we are working to make driving safer, easier and more comfortable. Volkswagen Group is researching and developing safety enhancements. Including driving assistance systems that may actively engage when the vehicle is at risk of leaving the road or if a collision can no longer be prevented, such as: • Engine Braking Control – Detects the loss of wheel adhesion. • Automatic Emergency Brake – Executes a full braking maneuver to prevent a collision. • Automatic Distance Control – Brings the vehicle to a complete standstill. • Electronic Steering – Enables independent electronic steering. • Attention Control – Monitors the driver for signs of fatigue. • All-Round Vision – Uses sensor data to detect possible hazards. And for everyday use: • Road Sign Display – Registers and displays current speed limits. • Parking Assist – Automatically maneuvers vehicle into parking space. Even with advanced technology, the driver retains ultimate authority and the ultimate responsibility. Enhancing the driver’s ability to drive safely is the top priority for all assistance systems. SPOTLIGHT ON SUCCESS We invest in safety because our customers drive us. Volkswagen is the only brand of vehicle R.G. Van Treuren, a spacecraft operator with a distinct appreciation for wellengineered products, has ever owned. Brady Quick (pictured above), after surviving a crash that totaled his Candy White 2009 CC, purchased a brand-new 2010 CC. 22 a t h o m e .v o l k s w a g e n g r o u p a m e r i c a . c o m

SA FET Y

Future intelligent systems are under joint study by Volkswagen Group of America and other industry leaders with the premise that when vehicles learn to communicate with each other and with traffic infrastructure, road travel can be safer. Technologies in development include: • Audi Travolution – Enables real-time communication with traffic infrastructure. • Autonomous Driving Vehicles – Use laser range-finders and radar sensors. • Connected Drivers – Assists driver with wireless communication to help avoid potential road hazards. • Navigation Companion and Online Portal – Help drivers find, save or share their destinations. • Picture Navigation – Allows users to share pictures of destinations with GPS coordinates. • Sociable Car-Senseable City – Transforms GPS navigation system into a personal co-pilot.



At our Electronics Research Laboratory, human factors research is an integral part of our safety technology development efforts. Through the use of test cars and a driving simulator that mimics the driving experience of everyday life, human factors concepts are studied to provide significant and meaningful improvements in human-machine design and development. The innovative vehicle today is a mobile computer equipped with infotainment systems and interactive safety features, all of which must be carefully integrated so the intelligent car complements — rather than overwhelms — the human driver. The primary challenge in automotive human factors is to determine how best to assist the driver with information processing and how best to mitigate the unintended consequences of these technologies. Our engineers, designers and human factors researchers work together to create an intelligent car capable of considering human limitations and capabilities.

SPOTLIGHT ON SUCCESS Charles Lee, former research engineer with the Infotainment Group explains: “As cars get more complicated, the warning lights and beeps they make get more confusing, and less intuitive for the user. Together with the personal robotics group at MIT, we’ve made a little car assistant. It has a face, eyes that can blink, and it can move around. If you don’t buckle your safety belt, today the car will just flash a light and beep at you. What if the car expressed to you that it was worried or that it was nervous,” using emotional tones and “facial” expressions? “I think it’s really powerful.” Though using personal robots as communication devices in the cars we drive may sound like something from the future, engineers at the ERL are working on AIDA, the Affective Intelligent Driving Agent, to improve a driver’s understanding of warning lights and beeps. 23

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ENVIRONMENT

The Reason Why: The world is gearing up for a big change in the way that people think about cars and the environment, and it’s great to work for a company like Volkswagen that’s actively a part of it. From our diesel and turbo-charged vehicles, to the construction of our new Tennessee assembly plant, we’ve been building a cleaner footprint for decades. And our work on hybrids, electric cars and other advanced technologies will take us to the next level. – Bret Scott Product Manager CC and Eos Volkswagen of America

ENVIRON M ENT

CLEAN, SAFE PRODUCTION We scrutinize every step in manufacturing and transportation, beginning with site choices. We avoid locating new facilities on sites where unique or sensitive ecosystems exist. And we insist on minimal environmental impact and maximum safety during construction. We work continually to develop more environmentally responsible methods to minimize the risks of foundry and welding gases, paint, refrigerants, solvents and plastics.

Employees in Michigan grow green.

We know what it means to be green. Even before we were recognized as “the most environmentally friendly car company selling in the USA” by J.D. Power and Associates, even before winning the 2010 World Green Car, the 2010 Green Car of the Year and 2009 Green Car of the Year awards, we’ve been attentive to environmental issues. Environmental stewardship has always been an integral part of our business, not an obligatory side issue. That’s why our $4 billion assembly plant in Tennessee uses smart technology and environmental design for clean production. As one of the world’s largest automobile manufacturers, our commitment is global. We are investing another $10 billion (8 billion Euro) globally on alternative technologies with the goal of zero-emissions mobility for the future.

Our energy-saving parts distribution centers feature dock doors with special insulation to prevent heating and cooling loss, equipment chargers to reduce energy consumption more than 25 percent, advanced fluorescent lights with motion sensors to help reduce electricity consumption by up to 60 percent and skylights to provide natural lighting. Waste reduction and recycling are standard practices at all our facilities. Water conservation is achieved by limiting waste and recycling through filtration systems where possible. We constantly seek ways to lower energy consumption, and in some instances are able to supplement with alternate power sources such as solar or wind. Of greatest importance, we create the safest working environment possible for our employees.

From our low-consumption, low-emission powertrains, to our energy-efficient production facilities and integrated environmental management processes, we are maximizing sustainability and environmental acceptability. And our employees, suppliers and sales partners are equally committed to ongoing improvements. a t h o m e .v o l k s w a g e n g r o u p a m e r i c a . c o m

SPOTLIGHT ON SUCCESS Our headquarters building in Herndon, Va., has been recognized with Leadership in Energy and Environmental Design (LEED®) Silver-level certification for innovative use of lighting, water and materials, as well as overall sustainability strategies. Our LEED®-aggressive assembly plant in Chattanooga, Tenn., is being built to the highest responsible land re-use, wise water use, emission reduction and eco conscious production standards. 25

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GREEN PLANT Our new Chattanooga plant on the banks of the Tennessee River is the latest of our green investments in America. As part of our effort to manufacture more products locally, our new LEED®aggressive assembly plant begins production in 2011. The $1 billion energysaving facility with an annual capacity of 150,000 vehicles will produce a new mid-size sedan designed for the United States. Thirty percent will be powered by Volkswagen’s TDI® Clean Diesel technology. Our commitment to environmental responsibility and sustainability is reflected in the plant’s green features: Responsible Land Re-Use: The plant is under construction at Enterprise South, previously a Volunteer Army Ammunition Plant, now fully remediated and certified by the Tennessee Valley Authority. We are partnering with the state and city to distribute saplings for every tree displaced by construction.

Wise Water Use: Meander creeks will collect, filter and recycle storm water to be used in a cooling pond and restrooms, helping save 359,999 gallons of fresh water, enough to meet the needs of almost 22 households each year. Groundwater, waste management and sewage systems meet stringent LEED® standards to avoid flash floods originating from the plant, manage runoff and regulate the water supply. Emissions Reductions: A newly engineered base coat reduces vehicle paint drying time and CO2 emissions by 20 percent. Environmentally friendly roofing of thermoplastic polyolefins saves energy by improving weather resistance and resilience. Smart insulation in the plant walls is six-inch mineral rock wool panel for energy savings with no VOCs or CFCs — and it’s 100 percent recyclable. The facility is also a completely tobacco-free workplace.

Energy Efficiency: Using the most efficient electric motors available for automated machinery, advanced laser welding technology, smart ventilation systems, improved air circulators and deflectors, air-to-air heat exchangers, continuousline lighting system with T5 bulbs and outside high pressure sodium vapor lights with mirror technology will save the annual energy use of 1,880 households.

SPOTLIGHT ON SUCCESS Before the first new vehicle leaves our Chattanooga assembly plant, it already will have traveled 2.8 miles on the E-Shuttle transport line. The finishing conveyor line is managed by 56 robots, which flip and dip the auto body into 10 water and paint tanks to coat and protect the vehicle. At the end of the four-level paint shop, the two-hour process then finishes with a top coat and wax spray. “We’re the first in the world to use E-Shuttle,” says Rich Schmidt, plant engineering manager. “The old system required the unit to ramp into and out of the paint bath. E-Shuttle allows the body to be put straight down, turned 360 degrees, turned straight up and conveyed to the next bath. We’re able to reduce the tank size which results in less water, fewer chemicals and less energy usage.” The plant’s paint shop process reduces CO2 emissions by 20 percent below other plants. 26 a t h o m e .v o l k s w a g e n g r o u p a m e r i c a . c o m

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GREEN GROWTH The Chattanooga assembly plant will create even more green growth investments: Economic Development: Our $1 billion investment and state/local/federal commitments will create $12 billion in income growth and $1.4 billion in total new tax revenue. Local Investments: More than $686 million in local and Tennessean contracts have been awarded to date, including: more than $379 million to Tennessee and Chattanooga-area construction contractors and subcontractors awarded by the city, state and Volkswagen; and $307 million in annual contracts with local and state parts suppliers. Another $230 million in construction contracts are planned over the next 20 years. More than five percent of suppliers will be minority- and woman-owned by start of production, with the goal of 10 percent by 2015. Jobs: The Chattanooga facility will employ more than 2,000 supervisors, professionals, multi-skilled maintenance workers and production team members. Another 9,500 supplier-related jobs will be created to support the assembly plant.

THE REASON WHY Before construction ever started, environmental protection was a major part of the Chattanooga assembly plant. Chattanooga has focused on creating a very clean city, and the city offered great support in building a good environmental program. Part of our program has been making the site, an abandoned WWII explosives manufacturing facility, better than it was before. This involved improving the creeks and some of the wetlands around the area. Volkswagen builds plants using the most advanced technology and best production practices from our operations around the world. From site planning to manufacturing and delivery, new facilities like the one in Chattanooga feature smart technology and environmental design to help reduce waste and emissions, and save energy. In addition to advanced welding, painting, ventilation and lighting systems, the layout of the body shop at the Chattanooga plant is more compact as a result of optimized processes simulated in virtual reality. Our employees benefit from ergonomically designed working spaces, a fitness center and healthy food choices in the dining area. And to conserve on transportation fuel, 85 percent of the vehicles produced will be transported by rail. 27

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E N V I R O N M E N T/ I N N O VAT I O N

GREEN CARS Already a worldwide leader in the field of low-consumption, low-emission powertrains, with our ever-improving technology we aim to offer carbon-neutral mobility. TDI: Clean Diesel With turbo-charged direct-injection engine technologies, ultra-low sulfur clean diesel and the most advanced catalytic converter systems able to meet the toughest emission standards, Volkswagen Group’s TDI Clean Diesel vehicles offer the best of both worlds for people and the planet — greener fuel and greater economy. While other green solutions have to switch from battery power to gasoline at highway speeds, TDI Clean Diesel offers true fuel economy on and off the highway — up to 40 percent more. More than any other affordable drive technologies today, economical TDI Clean Diesel is making a bigger contribution toward reducing oil consumption and greenhouse gases. Converting one-third of the cars on the road today to TDI Clean Diesel would save approximately 1.4 million barrels of oil a day. TFSI® engine technology (turbocharged fuel stratified injection engine technology) delivers turbocharged acceleration while still delivering responsible fuel efficiency — the optimum balance of power and economy. Audi Clean Air intelligent vehicles will let drivers choose the most energy-efficient route using smart engines, traffic-information nodes and on-board traffic cameras. Vibration-energy harvesting provides a clean energy source to power vehicle sensors.

Hybrid advances: Our all-new Touareg Hybrid, with its elegant design and dynamic engineering, is tangible proof that a consumer won’t have to sacrifice when shopping for an environmentally responsible car. We soon will be launching the Audi Q5 Hybrid, and we are adding more hybrids like the Volkswagen Jetta Hybrid for 2012. We are also bringing integrated powertrain and after treatment systems onto the market to drastically reduce nitrogen oxide, carbon monoxide, volatile hydrocarbon and particulate emissions. ENVIRONMENTAL PARTNERSHIPS • Business for Social Responsibility • Chesapeake Bay Foundation • Conservation International • International Conservation Cause Foundation

• Planet Forward • The Environmental Law Institute • The Carbon Neutral Fund • The Nature Conservancy • World Environmental Council

ENVIRONMENTAL PARTNERS AROUND THE WORLD • Bavarian State Forestry • Forest Yield Science at the • Center for Environmental Education Technical University of Munich and Communications (CEEC) of • Green City Energy the Ministry of Environmental • Nature and Biodiversity Protection (MEP) Conservation Union (NABU) • Saxony State Foundation for Nature

SPOTLIGHT ON SUCCESS In the 2010 comprehensive environmental rankings published by the Union of Concerned Scientists, an alliance of more than 250,000 citizens and scientists working for a healthy environment, Volkswagen tied Toyota for the lowest smog-forming pollutant emissions. According to the report, “The newer and cleaner diesel models that Volkswagen now offers will be technologies to watch—especially to see if they can beat out other companies’ hybrids.” 28 a t h o m e .v o l k s w a g e n g r o u p a m e r i c a . c o m

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GREEN FUTURE As technology leaders, we see a future mobility independent of fossil fuels and largely carbon-neutral. Electro-mobility: Our goal is both clear and ambitious. Volkswagen will be the automaker to mass produce the electric car — for everyone. The four-seat space up! Blue compact zero-emission van is the first in a new series of small family cars powered by lithium ion batteries, a high-temperature fuel cell and a roofmounted solar panel. A small series of the e-tron, Audi’s first all-electric car, will be launched at the end of 2012. And 2013 will be a key year with the launch of the all-electric E-Up and shortly afterwards the Golf blue-e-motion. Hydrogen fuel cell vehicles like Volkswagen’s Tiguan HyMotion, based on the company’s unique technology, will yield more than 107 horsepower and produce zero emissions, with clear water vapor as the only byproduct. These virtually silent vehicles are completely clean engineering marvels that promise to be the ideal means of transportation for the future. Synthetic fuels: Our revolutionary Sunfuel®, a breakthrough next-generation almost-carbon-neutral biofuel in development, is produced from plant matter, agricultural waste and food-processing byproducts. It is then converted into a diesel fuel, which reduces particulate emissions and nitrogen oxides by nearly 30 percent — even in older vehicles. Sunfuel® will be distributed from existing fuel stations. VW global initiatives: Critical for economic development, rapidly growing mobility also brings environmental challenges such as the need to reduce emissions, the finite nature of fossil fuel resources and the looming threat of metropolitan gridlock. We are working around the world by harnessing the power of innovative people and technology. Even in challenging economic times, we are investing billions of dollars with the goal of zero-emissions mobility for the future.

SPOTLIGHTS ON SUCCESS Fans of Audi became fans of The Nature Conservancy and raised $25,000 to help reduce carbon emissions. Audi donated $1 for every Facebook user who joined The Nature Conservancy’s effort to restore the Tensas River Basin. The project aims to counterbalance carbon emissions by reforesting private lands to capture and store carbon and restoring critical habitats to native species in the Lower Mississippi Valley. Our engineers are always innovating to reduce our vehicles’ carbon emissions. But our commitment doesn’t stop with our products; we want to promote reduced emissions through support of organizations like The Nature Conservancy. VW Credit, Inc. is encouraging customers to move to paperless invoice statements. If just 20,000 credit customers make the switch, the carbon offset is equivalent to the CO2 emissions from 220,000 gallons of gasoline. The “Drive Paperless” initiative is part of a larger corporate commitment and support of The Carbon Neutral Fund. “Making sensible energy reductions, combined with cost effective carbon offsets, is a sound way of moving toward a zero-carbon world,” says Kevin Kelly, president of VW Credit, Inc. “VW Credit, Inc. customers who participate in the program can take pride in helping restore a unique ecosystem and protect important wildlife habitats.” 29

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DIVERSIT Y

The Reason Why: I have the opportunity to share my Latino culture with other employees. I am an active member of the company’s diversity council, and for Hispanic Heritage month we ran a three week program highlighting Hispanic culture, from VW Hispanic marketing efforts to Hispanic food to Hispanic accomplishments in our nation. Not every company will give these kinds of resources, but we have a wonderful team, a wonderful group and a wonderful way to make people feel special. – Jesse Mejia Residual Value Specialist VW Credit, Inc.

DIVER SIT Y

Students from Calvin Donaldson Elementary entertain at the Chattanooga plant wall-raising ceremony.

Our ongoing goal is to become known as a company that: • Values and respects the contributions of men and women of all backgrounds. • Embraces diversity of thought as a critical factor in its future success. • Substantially reflects the diverse population of the U.S. And we are committed to the journey. As citizens of every community where we work and live, we share our corporate commitment to diversity, actively supporting our Partners in Education and organizations such as the National Urban League, Boys and Girls Clubs and Rainbow PUSH with time, talent and funding.

Diversity and inclusion are imperatives for success. To us, diversity and inclusion simply mean equally honoring all backgrounds and points of view that make up the American success story. In a company constantly looking forward to the next innovation in mobility and technology, we also look broadly for the best ideas. We believe this diversity of ideas, experiences and backgrounds helps us create a better product and a better relationship with our customers, dealers, employees, business partners and communities.

DIVERSITY COUNCIL Members of our Diversity Council serve as personal diversity champions, advising the organization on key issues and representing the initiative to internal audiences. The Council’s charter is to: • Help set priorities among strategic diversity issues. • Monitor business plans and actions. • Identify and report diversity progress and assess results. • Identify, share and implement diversity best practices. On an annual basis we recruit new council members who are highly motivated, committed and energetic individuals eager to be change agents in the organization.

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ACHIEVEMENT AND TEAMWORK AT WORK Meaningful work is one of the essential requirements for a meaningful life. That is why inclusion is also a key element of our corporate culture. We celebrate achievement and teamwork for a healthy workplace climate. Within our organization, we offer diversity awareness training, opportunities for employee networking and other activities that promote an inclusive work environment. Our team members create and coordinate cultural celebrations, awareness programs, volunteer efforts and fundraising drives. Enhancing knowledge and skills is another of the important connections we help our teams make. We provide learning opportunities for our employees, not only to strengthen our competitiveness but to also contribute to each team member’s sense of worth. And we challenge our teams to stay fit physically. During a recent “Active for Life” program, we encouraged teams and individuals to set activity goals. Points were awarded for simple changes like taking a walk at lunch or using the stairs instead of the elevator, and for more intense activities like aerobics, running and team sports. Though small prizes were awarded each week for goals met, the real reward for the 57 teams who participated in the 10-week program across the country was the two million minutes of healthy activity logged, and the new habits for a healthier lifetime learned.

FIVE PILLARS OF CORPORATE DIVERSITY STRATEGY Corporate Commitment Our involvement in and support of communities where we do business; corporate contributions; and sponsorships of community and civil rights organizations.

Workplace Climate Diversity awareness training; employee networks; and activities that promote an inclusive work environment.

Economic Development Including minority- and woman-owned businesses in our dealer and supplier network.

Talent Management The recruitment and retention of a multicultural workforce.

Leadership Accountability Visible support of corporate diversity initiatives and goals from senior leaders and executive board.

AROUND THE WORLD Dragan Antoniejevic is a very committed taxi driver: “I have already covered four million kilometers. It will be six million when I retire,“ he says – a long, long way. Especially for a 55-year old with only a left hand. He lost his right hand in a circular saw accident while building his house. But he can drive a car, thanks to his special prosthetic arm. “Most of my passengers are fascinated,“ he says. “Some tell me I can drive better with one hand than they can with two.“ The taxi Dragan drives is not standard. He drives exclusively around the VW grounds at Wolfsburg, Germany. His customers are all VW staff – for example, engineers who need to quickly get from one end of the massive plant to the other. They simply call “Pick & Go,“ the facility‘s shuttle service. All the drivers have some form of handicap. “Pick & Go“ was the first project of Volkswagen AG’s Work2Work personnel concept. Its goal is to give employees with disabilities and altered performance – as such persons are referred to at VW after an accident or illness – an occupational alternative to their previous job. 32 a t h o m e .v o l k s w a g e n g r o u p a m e r i c a . c o m

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A DIVERSE NETWORK With 35,000 corporate, dealer and subsidiary team members across all 50 states, success for us is success for the U.S. Our recent $4 billion investment in America — for new jobs, a new Tennessee manufacturing plant, a new American-made midsize sedan, new flagship dealers in New York and our new Virginia headquarters — underscores the value we place in our 55-year relationship with the American consumer. But it is our dealership team members who are the closest to our customers. They are the face of our company, the relationship-builders. That is why we are driven to strengthen that connection with our customers through our national sales network by: • Listening more to our customers. • Empowering dealers to solve problems on the spot. • Breaking down artificial barriers within the organization. • Easing many processes and policies for improved efficiency and time to market. • Working with dealers to ensure they are ready for more cars, more customers and more sales.

SPOTLIGHT ON SUCCESS For demonstrating our commitment to diversity and inclusion, the Urban League of Greater Chattanooga awarded Volkswagen Group of America the Corporate Leadership Award at the League’s 2010 Equal Opportunity Day event. Long before the concrete was poured at our new assembly plant in Tennessee, a different type of foundation was laid for the future. The Volkswagen Diversity and Inclusion Advisory Council for our Chattanooga operations was formed. “We asked for the involvement of the community and individuals representing groups who have been historically disadvantaged, with the goal of ensuring that all employees are treated with dignity and respect, and that all qualified suppliers have access to business opportunities,” said Machelle Williams, Volkswagen’s general manager of diversity and organizational development. “We value the diversity of the team we are creating here in Chattanooga,” Don Jackson, president of manufacturing for Chattanooga operations, and an executive champion of the council, says. “A diverse team assures us that we have the community’s values included in all that we do, both here at the plant and in the community.”

AROUND THE WORLD Melanie Drechsel did not actually need to look for an apprenticeship. She knew all along what she wanted to do. “I wanted to go to Audi because I knew that they offered excellent training and that further training, wages and opportunities are also spot on,“ she explained enthusiastically during her apprenticeship to become a production mechanic in Ingolstadt, Germany. She had posted 40 applications during her last school year, and – a rare thing today – actually had a choice; a choice that she found easy to make. Over the course of her apprenticeship as a future “production mechanic,” Melanie spent up to six months in three or four sectors. She learned all about production processes in detail – from body building through to assembly and preparation for customer transfer. “We constantly went between theory and practice during the in-depth training courses – for example, in car motor or car pneumatics, it really is very interesting.” 33 a t h o m e .v o l k s w a g e n g r o u p a m e r i c a . c o m

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But we are about more than just cars. In every hometown where we work and live, you know who we are by the difference we make — in education, community development and environmental stewardship. Whether coaching on a Little League field, volunteering at a hospice center, or helping a customer chose the most economical family vehicle from one of our showrooms, American values like respect for hard work, diversity, social responsibility and active sustainability are integral characteristics of our company culture. Each of our vehicles is a reflection of the soul of all the different people who engineer, manufacture, sell, service and drive it. Each of our brands has its own character. Each inspires passion and loyalty. Each connects with the heart, mind and soul. That is why we believe in the value of partnering with qualified, experienced and value-driven suppliers of all backgrounds. We recognize a diverse supplier pool allows us to take advantage of innovative perspectives, unique talents and cuttingedge ideas. Ultimately, we are committed to finding the most professional and diverse business partners available. Our goal is to forge long-term relationships with these suppliers to benefit our brands, our customers and the communities in which we live. At our new assembly plant in Tennessee, our $1 billion investment combined with state, local and federal commitments translates into $12 billion in income growth and $1.4 billion in total new tax revenue. The Chattanooga facility will employ more than 2,000 people, including supervisors, professionals, multiskilled maintenance workers and production team members. Another 9,500 supplier-related jobs will be created to support the assembly plant.

THE REASON WHY I was born with a genetic disease called spinal muscular atrophy, a form of muscular dystrophy which affects the motor neurons of the spinal cord and brain stem. This causes muscle weakness throughout the body. This does not affect sensation or intelligence. I am confined to a power wheelchair and am completely unable to stand or walk. Even though I have weakness in my upper extremities, I am able to handle most daily work tasks with minimal assistance. Although it may be my most identifiable trait, I do not let it define who I am as a person. I believe my disability has given me characteristics and traits that I use in day-to-day business, such as creativity, adaptability and open-mindedness. – Vanessa Mason Warranty Helpline Leader Volkswagen Group of America

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TALENT MANAGEMENT Motivated people are our most important energy resource. That is why we invite the best and brightest from across the country and around the world to work with us. We work with leading-edge technologies, and even create many of the innovations that raise the bar for the rest of the auto industry. We provide a supportive work environment and have a deep commitment to the natural environment. We’ve set some high goals for ourselves and we want people who have done the same for themselves. We believe in a multicultural workforce and we make that philosophy an integral part of our recruitment programs across the globe. We look for the best ideas and share them throughout our organization. Team members from the U.S. work abroad at our locations in Germany, Australia, Canada and India. Likewise, team members from across Europe, and North and South America join colleagues here in the United States. Our Accelerated Graduate Program is designed for recent college graduates with a strong interest in accelerated automotive industry careers. Selected individuals are exposed to entry-level responsibilities in marketing, product marketing, public relations, sales and operations, rotating through different areas in the same business unit plus one outside rotation. On successful completion of the program, which includes training, mentoring, networking, and executive and global exposure, graduates have an opportunity to be placed in open full-time positions.

SPOTLIGHTS ON SUCCESS The Volkswagen Academy is an innovative training center preparing employees for work at the new Chattanooga plant. High-tech classrooms also feature all the aspects of the manufacturing facility on a smaller scale to allow for handson training, including a machining area, welding area, electricity lab, autotronics center, automotive diagnostics area and more. The Academy provides advanced vocational programs and promotes personal growth for workers and for those seeking employment. This dual educational track is designed to help workers prepare mentally and physically, so that when they enter the plant they are already highly trained in their field. Partners in the project include: the State of Tennessee, Chattanooga State Community College, Tennessee Technology Center, Tennessee Technological University and the University of Tennessee at Chattanooga. The 163,000-square-foot center also offers meeting facilities open to the community. The Volkswagen Academy also offers a unique Automotive Mechatronic Program, a synergistic study of the mechanical, electric/electronic, computer, control and infrastructure systems used to design, manufacture and repair machines and systems. Students are given hands-on training in robotics, programmable logic controllers, pneumatic/hydraulic systems and machining, as well as in lean manufacturing systems. A final “capstone” project tests students’ ability to integrate all these systems into one project judged by manufacturing management. The curriculum, developed in partnership with the Tennessee Technology Center at Chattanooga State Community College, offers rotating labs and on-the-job training experiences throughout the three-year program. New groups start each fall with a maximum of 60 students in the program at any given time. All students receive scholarships for tuition and books. 35

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DIVER SIT Y

LEADERSHIP ACCOUNTABILITY Sustainability and responsibility are dependent on the consistency with which everyone involved shares and supports common values. Our senior leadership and executive board members offer visible and dedicated support for corporate diversity initiatives and goals, recognized by the following benchmarks: • Volkswagen Group of America was the first automotive company to sign the National Association of Minority Auto Dealer’s “15 Percent Formula for Success,” committing to improve the percentage of majority ownership that ethnic minorities have in new car dealerships. Currently, 10 percent of Volkswagen and 6 percent of Audi dealerships are minority- and woman-owned. • Thirty-five percent of corporate giving is toward economically disadvantaged groups and organizations that serve minority communities. • As part of our robust Supplier Diversity Program, more than 5 percent of suppliers at are Chattanooga production facility will be minority- and womanowned by start of production, with the goal of 10 percent by 2015.

WE ARE HARD AT WORK, AT HOME IN AMERICA In driving forward to the next innovation in mobility and technology, we look broadly for the best ideas; we expose ourselves to new thinking. Because we believe in connecting with our customers, our communities and the environment, we give of our time and our talent; we share from our hearts, our minds and our wallets. And we welcome the opportunity to make a difference. We do all that, not just because it make business sense, but because people drive our passion: The best of German engineering and the cando spirit of America – together – creating the safest, most technologically advanced and environmentally friendly vehicles on the road today. It’s really all about the American dream – working hard for a better tomorrow, a better world. Thanks for sharing the ride.

As global leaders, learning how to change helps shape us. The people and products of Volkswagen Group of America can, in turn, help shape the world.

SPOTLIGHT ON SUCCESS For the four consecutive years in 2008, 2009, 2010 and 2011, Volkswagen Group of America received a 100 percent score on the Human Rights Campaign Foundation’s Corporate Equality Index, measuring the inclusiveness of workplace policies for Lesbian, Gay, Bisexual and Transgender employees. 36 a t h o m e .v o l k s w a g e n g r o u p a m e r i c a . c o m

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For information on the Volkswagen Group’s social responsibility initiatives, visit www.sustainabilityreport2009.volkswagenag.com

© 2010 Volkswagen Group of America “Volkswagen”, “VW”, “TDI”, “Das Auto”, and all model names are registered trademarks of Volkswagen AG.