Volkswagen of America, Inc. is proud to be the automobile industry�s leader in diesel technology for passenger cars and light-duty trucks. Many customers have expressed interest to us in operating their Volkswagen TDI vehicles on �biodiesel� fuel. As you may know, this is a special fuel that is mostly conventional petroleum-based diesel fuel, but which is blended with a compound made from renewable, agricultural products, mostly originating in North America from soybeans. We are very pleased to inform you that just as Volkswagen has been a leader in passenger car diesel technology, we now also lead in the development and use of biodiesel fuel.

As a result of a major joint research project between the Volkswagen Group and the prominent agricultural products firm Archer Daniels Midland Company, and improvements in the specifications for biodiesel fuel in North America, Volkswagen has determined that diesel fuel containing up to five percent biodiesel meets the technical specifications for Volkswagen vehicles equipped with TDI engines imported to the United States. Therefore, the diesel fuel commonly known as �B5 biodiesel� is acceptable for use in all our TDI vehicles.

Volkswagen hopes that by approving B5 biodiesel for usage in our TDI vehicles, we will encourage biodiesel development and increase the biodiesel industry�s role in developing high quality renewable fuels for motor vehicles. This, combined with the exceptional fuel economy that Volkswagen TDI owners already experience, has the potential to be small part of the energy independence we all seek. Volkswagen sees biodiesel as a key element of a comprehensive long-range fuel strategy that relies on efficient, clean diesel technology and the use of an increasingly broad portfolio of renewable fuels.

We do want to take a moment to speak to you about fuel quality. While this historic decision by Volkswagen is a first step in a renewable fuel strategy for our cars, it is not a departure from our strong recommendation that you use only high-quality fuel, nor from our long-standing fuel requirements for warranty purposes, whether diesel, biodiesel, or gasoline. We will continue to view fuel issues in the same fair manner as we always have in the past, but we must stress that vehicle damage that results from misfueling or from the usage of substandard or unapproved fuels cannot be covered under our vehicle warranties.

As you know, today�s motor vehicle engines, including our very advanced TDI engines, are engineered with great precision and are sensitive to the fuel they use. Biodiesel fuel can be refined from a wide variety of raw materials, having a wide range of properties and specifications. The U.S biodiesel industry has adopted a new standard for biodiesel fuel, and most of the biodiesel already being produced in the United States and Canada, as much as 95% of current supplies in the U.S., meets this specification. Biodiesel fuel which does not meet the latest specification, however, has the potential to damage your vehicle�s fuel delivery and fuel injection system.

Volkswagen recommends that you use standard diesel fuel, or biodiesel blend fuels of up to five percent (B5), purchased from a mainstream retailer through a commercial pump. Should the use of substandard fuels, or higher level blends of biodiesel, damage your engine or fuel system, such damage cannot be covered under warranty. If a fuel problem related to substandard diesel fuel or biodiesel blend fuel occurs with your vehicle, you may be asked to provide the source or sales location of the fuel.

Volkswagen and Archer Daniels Midland continue to conduct research regarding the use of biodiesel blend fuels, including higher level blends such as �B20� (20 percent biodiesel, 80 percent petrodiesel), as well as to develop appropriate specifications that will assure the suitability of such fuels for use in our vehicles. Should this result in Volkswagen recommending the use of such fuels and deciding to cover their use under warranty, we will notify you at a later date.

In summary:

1. Volkswagen recommends the use of standard diesel fuel or commercially supplied biodiesel blends of no more than five percent (�B5�) biodiesel.
2. Never use any fuel, whether diesel, B5 biodiesel, or otherwise, that fails to meet the latest petroleum industry specifications or that is not purchased from a commercial retail diesel pump. If you are unable to determine whether a particular fuel blend is B5 biodiesel that meets the latest biodiesel industry specifications, ask your service station for more information.
3. Never use any fuel for which the contents cannot be identified.